Do you feel like you offer the same products as everyone else in your industry?
While what you offer might be similar, HOW you offer it is much more important if you want to stand out from your competition.
Successful companies today don’t just talk to their customers about money. They give them experiences. Enter Starbucks, a brand that has revolutionized how we think about coffee shops.
How did Starbucks Change Our Idea of Coffee?
Before Starbucks, Americans drank boring canned supermarket coffee. Coffee only had a practical use, instead of being an enjoyable experience.
Starbucks wanted to give people a place to pause from their busy and stressful days. This didn’t really have a name, until 1989, when sociologist Ray Oldenburg gave it the fancy name “Third Place”. Starbucks created a place” between home and work where people could relax, feel good, and socialize over high-quality coffee.
How Howard Schultz Made Starbucks a Unique Coffee Shop
Today, many of us see Starbucks as overpriced potions with innovative flavors. I didn’t know coffee could taste like Caramel Snickerdoodle before writing this article.
But at first, Starbucks saw that there were a lot of people with a passion for quality coffee, who sadly couldn’t find it anywhere. So, Starbucks started importing good coffee from all over the world and gained some popularity. (Is there a gap in the market that your product could fill?)
Howard Schultz saw the potential for more. He experienced the Italian way of drinking coffee and decided to bring it to the USA. He envisioned Starbucks as more than just a coffee supplier. He envisioned it as a place to connect, relax, and spend free time.
Every coffee shop in the USA was the same back then. Starbucks set itself apart by occupying a new place in its customers’ minds (aka positioning). Even if you think your industry is saturated, there is always a way to stand out, it just requires a little thought (and most businesses don’t do that) – How to find the best positioning for your business.
More Than Just a Coffee Shop – How Starbucks Revolutionized Customer Experience
Starbucks coffee shops are designed to bring good vibes. They use comfy sofas, cozy armchairs, soft lighting, jazz music, and beautiful decor to make the customer feel at home.
What Starbucks does with music is really advanced and a tiny bit manipulative, but it works great for them. They make you feel at home by changing the music they play based on the time of day, season, and customer demographics.
They introduced free Wi-Fi, which attracted students, professionals, and freelancers like moths to a flame. This made Starbucks a space for both relaxation and productivity.
Also, Starbucks is committed to sustainability, which attracts customers who fight to keep the environment clean. By 2025, they want 25% of their cups to be reusable.
For your business, think of ways to attract different customers who have the same need. In the Starbucks example – a place to spend time while drinking good coffee.
When Starbucks spread its wings internationally, it valued local cultures. In China, they introduced the “Matcha Frappuccino” to suit the local taste, while in India, they offered Chai Tea Lattes to honor the rich tea culture.
If you can tailor your products to a specific type of customer or culture, your business will radiate a sense of familiarity, respect, and belonging. Here are the things you should keep in mind when selling to a different culture
Iconic Branding
Starbucks’ green logo is a symbol of coffee culture worldwide. Their unique cups, often marked with your (often misspelled) name, add a personal touch.
Consistency is another important value of their brand. No matter which Starbucks you visit, you can expect the same high standards in terms of coffee quality, taste, preparation, and funny names.
To make your business instantly recognizable, develop iconic branding and keep it consistent.
Treatment of Employees
Howard Schultz understood that happy employees are key to a successful business. He referred to his employees as “partners” and recognized that Starbucks couldn’t exist without them.
Image source: https://brandautopsy.com/2007/01/the_starbucks_e.html
Take a look at the classic employee engagement techniques that Starbucks uses and see if there are any you can use for your employees: Staff newsletters, company intranets, employee training programs, regular meetings, and recognition programs.
Nowadays, Starbucks offers the workers some rather creative and modern benefits, such as free Spotify Premium, or a free pound of coffee every week. The employees even have 140+ degrees to choose from for their first Bachelor’s.
If you take a closer look, most of these benefits appeal to… The specific type of person they want to attract as employees (young wannabe baristas)! Don’t only research your market, also research what your employees want and need!
Treat your employees well and let them know that you value them, and they will reward you with a beautiful business.
Flexibility and Adaptation
Yes, Starbucks was revolutionary for the idea of enjoying coffee as an activity. However, they know that some customers are in a hurry and just want good coffee. So, they opened drive-thrus and walk-thrus, especially in suburban and outer urban areas.
They also identified what the customers crave while drinking coffee and expanded the menu to include other drinks, breakfasts, and brunches.
Identifying what else your customer wants after buying your product is the core principle of creating an “augmented product” – There are a million ways to make your product attractive.
Keep researching your customers’ needs and wants so you can be the first to adapt and offer a new solution to their problems.
In 2023, Starbucks made an attempt to adapt to current times that went quite badly. I’m talking about this ad:
This ad received quite a lot of backlash in India because some people claimed that It encourages teenagers for sex change. Although being controversial is sometimes great in marketing, always be cautious when running campaigns in other cultures.
Starbucks in the 21st Century: Modern Marketing Strategies
While the classic Starbucks business strategies can teach us a lot about marketing, let’s be real – it’s not the 70s anymore, it’s 2024. Here’s what they do today:
- Mobile ordering: If the customers are in a hurry, they can always make time for Starbucks this way. If you’re able to digitalize something in your business to make it hassle-free, it’s probably a good idea to do it.
- Starbucks Odyssey: A program that uses blockchain technology to offer customers unique rewards for engaging with the brand. It’s like a digital loyalty program where you can earn special items and experiences through fun activities and purchases.
- “Deep Brew” AI technology: Starbucks uses it to manage inventory and predict demand. How can you use AI in your business? For ideas for your next article? Will it perform market research for you? You choose, but keep in mind that AI still needs a human soul in order to produce good results.
- Virtual reality: Howard Schultz planned to employ virtual reality as part of employee training to make the learning process simpler. This one might be out of your league, but the point is to constantly innovate and use digital tools to make your life easier.
Takeaways: How to Brew Your Own Magic
Next time you step into a Starbucks, remember—it’s not just about the coffee, it’s about the experience.
For your business, you don’t have to completely reinvent the wheel. If all your competitors sell products and you sell experiences – you’ll be light years ahead. So think:
- Do your customers have a need that is not being met anywhere? (Think quality coffee where there was none)
- How can you create an experience out of your product? (Socializing over a cup of coffee)
- How can you attract different customers who want the same thing? (Cozy vibes, free wifi, eco-friendliness)
- Can you tailor your experience to a specific type of person or culture? (Different menus in different cultures)
- Can the quality of your product be consistent everywhere? (The same beans, the same taste, worldwide)
- How can you motivate your employees to outdo themselves every time they come to work? (staff newsletters, company intranets, employee training programs…)
- Over time, your customers’ problems will develop. What can you do to adapt? (Drive-thrus, food, and coffee)
- How can you digitalize your business and make it easier for both you and your customers? (Mobile ordering, Starbucks, Odyssey, etc.)
Build a brand like Starbucks—mixing innovation, adaptation, and a dash of amazing marketing concepts.
