Chris Zane, founder and Chairman of renowned American bicycle company Zane Cycles, began repairing bicycles at 12. His mission is not to make money from cycling enthusiasts. To him, what matters most is giving customers wonderful experiences. He therefore knows that making customers happy from their very first visit is crucial, rather than simply selling them one bicycle.
After his first 1 year in business, Zane doubled his initial capital and earned revenue of USD 56,000. He had just turned 16 and was still at school. His mother looked after the shop in the mornings while he attended classes.
Success through a passion for spinning wheels
From childhood, Zane was fascinated by spinning bicycle wheels and worked part time at his father's East Haven garage in Connecticut to learn repairs. For Zane, closely observing how bicycles worked was not only a childhood experience but also the foundation for becoming an entrepreneur later.
Zane experienced many failures before finding a “niche market” for his product. As Zane's company grew larger and more complex than a typical neighborhood bicycle shop, he knew he could only grow so far.
He opened his second shop in 1986 and lost a large sum—100.000 USD—in 10 weeks. In 1994, Zane's attempt to expand his existing business by adding expensive exercise equipment also failed.
Four years later, he began looking at a “special market”: serving large companies such as American Express and Citigroup by proposing rewards for their customers and employees. It was an indirect business approach, but the prospect of selling 100 bicycles to one corporate client was too appealing for Zane to ignore.
Unfortunately, Zane found most companies indifferent to including bicycles in their promotions. In fact, most bicycle dealers avoided this market because it was too complicated.
The bicycles had to be disassembled, and the distributor had to deliver them directly to customers, who consistently struggled to reassemble them or chose the wrong size. Initial excitement gave way to disappointment, leaving the employees or customers receiving the gifts, as well as the company giving them, discouraged.
For Zane, this ‘downturn’ was a major challenge, and it took another 8 years to earn corporate customers’ trust and respect. This specialized market now accounts for 70% of the store’s revenue, and Zane Cycles has become the only Trek bicycle supplier in this field.
Zane now has 6,000 Trek bicycles in a new warehouse covering more than 2,000m2. However, Zane is still not satisfied with himself; he believes every transaction with a customer is an opportunity to strengthen the relationship. Moreover, B2B partners are also potential customers.
Making money is not the only mission
Zane's mission is not to make money from cycling enthusiasts. For him, the most important thing is to give customers wonderful experiences. He therefore knows that making customers happy from their very first visit is crucial, rather than merely selling them a single bicycle.
Zane Cycles also takes a distinctive approach to customers: it spends nothing on product advertising. Instead, all its customers come through word-of-mouth recommendations from friends and acquaintances.
“We seek long-term value for customers. When you change the way you think and build truly close relationships with customers, you will see that everything extends beyond ordinary transactions or commerce,” Zane shared.
This CEO said he does not make money on an individual customer's single transaction. “When customers feel happy and satisfied with the product you provide, they will return and refer many other people to you,” Zane revealed of his business approach.
“Want to know how many transactions I typically have with a customer? Well, they usually buy their first car from me, then come back for a second. After graduating from high school or college, they return to me for cars serving different purposes,” he said.
Zane believes successful entrepreneurs must accept risks, and he is always content with those he encounters. He believes that if nothing happens, there can be neither success nor failure.
“I will do anything to grow the company, and I know that customers always determine its success or failure. If customers want to pluck the stars, give them the entire sky,” the owner of Zane Cycles affirmed.
This means you must provide customers with services beyond the product you offer, building trust and reminding them of your efforts. Only then can you achieve lasting success.
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