The race for business growth and increased profit can lead to business failure.
In Smart Growth, Building an Enduring Business by Managing the Risks of Growth, author Edward D. Hess writes, “(1) small changes can add up and can have a big impact; (2) rapid growth can dilute a company’s culture; (3) rapid growth can dilute the customer proposition; and (4) the pressure from the public market to grow can cause dilution of quality controls. All of these outcomes can result in a competitive position vulnerable to attack by new competitors.”
More specifically, all these outcomes can result in customers leaving NOW… they won’t wait for a new competitor to open.
As a business owner you must evaluate each expansion, marketing and cost saving decision by asking: “Will it strengthen or dilute our customer’s experience?”
Dilute the customer experience and watch your business collapse.
(By Craig Arthur, Wizard of Ads Partner @ WizardOfAdsAustralia)