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Aggressive Small Business Marketing & Advertising
Big thoughts, ideas and how-tos for aggressive, fast-growth businesses and the entrepreneurs who fuel them.
Starbucks Customer Appreciation II: How To Make It Better And STILL Pinch Pennies
Posted by Michael Cage on Friday, April 02, 2004Yesterday I wrote about When Penny-Pinching Defeats Customer Appreciation - A Starbucks Tale of Marketing Woe. Interesting comments and discussion ensued, and I want to add another thought... and a suggestion for how this could have been a knock-em-dead promotion and STILL pinch pennies.
One of the tried and true methods of closing a sale is the alternative close.
"Mr. Jones, are you thinking of going with the red or the black convertable?"
The magic is in getting the prospect to stop thinking in terms of whether they want what you have to offer or not, and to shift their thoughts to choosing between multiple options... all of which you are happy with.
How does this relate to the Starbucks tale?
They reversed the process!
Having felt good about what was happening, and being pleased I was getting a "freebie", I suddenly faced the option of getting what I wanted (my usual drink) OR getting something I didn't want (a drink that is too small to last till I make it out the door) but could have for free. Yes, a very "small thing" ... that triggers a massive mental shift.
Let's trace the steps. 
- I have a good feeling AND I get a drink I want free
- I realize the free drink wasn't what I thought (Anyone else wonder why they didn't write TALL instead of 12oz on the paper when they'd use TALL anywhere else? I did.)
- I'm now forced to decide between: 1: Getting a drink I don't want b/c it is too small 2: Getting the drink I want and tossing the freebie coupon 3: Getting two drinks so I can have what I want and make use of the coupon
No matter what I choose there is a sense of disappointment. Yes, it is small. Yes, if I weren't a hardcore marketing geek and student of the human condition I might not even notice the negative shift engineered into the gift.
Once the shift was made from feeling good to thinking about 3 alternatives none of which I particularly like, the nice effect from the gesture was... at a minimum... diminished. Simple state shift as my focus was redirected.
What could they have done differently to make this a knock-em-out-of-the-park gesture and STILL pinch pennies?
Whoever chose and wrote my name also knows my favorite drink. They could have skipped the corporate coupon and hand-written the following inside the card:
"Hey Michael, your next latte is on us!" - Barista(s) name
It now is a BETTER promotion. The thank you and appreciation are more personal. My relationship is with my local baristas much more so than Starbucks the corporate giant, so the additional personal nature only strengthens the relationship much more. The company doesn't have to print and track the coupons. And, of course, I get my grande latte.
(Starbucks: I usually refuse to invoice, but in this case, it is in the mail. )
When Penny-Pinching Defeats Customer Appreciation - A Starbucks Tale of Marketing Woe
Posted by Michael Cage on Wednesday, March 31, 2004Let me start off by saying I love... I mean LOVE... my local Starbucks. I have written half-a-dozen books and a veritable boatload of copywriting projects for clients while sitting at my favorite corner table. I sip my latte (grande, with just a pinch of raw sugar) and occasionally look up to chat with my favorite baristas.
Tonight I walked in, said hi to Max, tossed a loose coffee bean at his head, and ordered my usual. Before ringning me up, he says, "I've got something for you." He disappears for a moment, then emerges with an envelope - greeting card sized - with my name on it. It wasn't large enough to contain anything that would jump out or shock me, so I opened it.
Ahhhh, a card...! And not just any card.
Splashed across the top is the message, "Thank you for brightening our day."
Inside? The message, "Congratulations on being chosen as one of our greatest guests."
So far, so good, right?
A little slip of paper fell out as I opened it, which I pick up and read. "Our Passion is Your Reward. Please enjoy a 12oz Starbucks beverage of your choice with our compliments."
That's pretty nice, right?
It was, until I learned that a 12oz is the "small" (also known as "tall") drink. Ugh.
I'm very particular about my caffeinated beverages, and I'm not a "tall" drinker. So instead of being left with the warm, fuzzy feeling I started out with... enjoying being recognized and appreciated... I am left thinking: "What penny-pinching fool had to ruin this experience by not wanting to give up an extra few cents and let me choose whatever size drink I wanted."
I guess it seemed like a good idea to whoever pitched and approved it. But, in the real world, they are going to end up with a lot of people disappointed, like me, instead of raving and evangalizing.
Of course, I'll still be back tomorrow with my usual order.
That's one nice thing about intelligently building a relationship. Once established, people will let "little things" slide they never would otherwise. But it can also be a downfall. Because when the bar for our relationship has been set as high as the great crew at my local Starbucks have done, stuff like what happened tonight can be a true letdown.
(And it continues... Check out Part II of Starbucks and Customer Appreciation.)
There are 6 comments, add your own!Quote: Donald Trump on Entrepreneurship
Posted by Michael Cage on Wednesday, March 31, 2004"Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game." - Donald Trump, "Trump: Art of the Deal"
P.S. Trump's new book, How To Get Rich, is excellent. On par with Trump: The Art of the Deal which has been one of my favorite business books for many years.
There are 18 comments, add your own!Seth’s Blog: Maybe I’m just cranky
Posted by Michael Cage on Tuesday, March 30, 2004Moved to Time And Energy Vampires.
There are 0 comments, add your own!Time And Energy Vampires
Posted by Michael Cage on Tuesday, March 30, 2004Seth Godin observes in "Maybe I'm just cranky" the demand on his time and assistance from people who have no relationship with him -- forget a paying relationship -- not a relationship AT ALL. In my experience Seth is dead-on accurate with his observations.
I love helping people as much as the next guy, particularly because I absolutely love what I do. But if I gave into all the demands placed on my time for "free help" I'd have nothing left to give those who pay me for advice. And that just isn't fair to my paying clients who I appreciate and value enormously. In my own life, I've adopted several strategies to cope with this:
- I've gone to a strict policy where I never answer the phone live. Everything is filtered through either voice mail or an assistant.
- My E-mail is carefully screened. People with a personal relationship or who are clients have a different, non-public address to reach me at than the rest of the world.
- I set up the expectation in advance that I do not and never will respond instantly to requests. E-mail has made communication sloppy. Whereas someone used to have to put time and thought into a FAX or telegram, with E-mail I'll often get half-conherent thoughts and brainstorms that I can do little with. Telling people in advance they'll have to wait encourages them to put everything I need to answer their question in their communication. It makes for a cleaner exchange.
- My primary business is helping businesses sell to small business clients using automated marketing systems. I've adopted a fair-but-strict policy of politely refusing to do anything for free for a non-client. My paying clients deserve any "freebies" I give out far more.