One of the things I frequently hear in my role is, ‘I wish I could develop a loyalty program like Starbucks.'⭐️ I have a love/hate relationship with this statement. I ❤️ it because it opens up the chance to dive into the WHY. I 👎🏼 it because the answer is often just, 'because I want my customers to come back more often.' Sure, who doesn’t? But that’s just scratching the surface. Imagine if the response was more like: ‘My data shows my customers love exploring our menu, and they're more likely to return when they've tried 3+ items.' That’s insight to build off of! This isn’t about trashing Starbucks' loyalty program. It’s about understanding a few key things: - Loyalty programs can’t fix a poor guest experience. 🩹 - Build programs that truly reflect YOUR brand and meet YOUR customers' needs. - Understand your customers' behavior and use it as the WHY when you create programs, features, and incentives. Read more on this post 👇🏼 #customerdata #loyalty #oloengage #CDP
It’s no secret that Starbucks has been struggling. In the latest quarter, same-store transactions were down by 7% across North America. This is a pretty serious drop that encompasses both existing customers visiting less frequently and some stopping visits altogether. Starbucks initial response to the problem has been to focus on price – offering deals to try and entice consumers. This is fine, as it goes. But it does not address the elephant in the room: the quality of the experience. Partly because of staff workload, partly because of deliberate changes to stop people lingering for too long, partly because of a lack of investment, Starbucks has become a far less attractive place to visit. That has driven some patrons to other outlets, including independent coffee shops – many of which pay close attention to the vibe of their stores. Starbucks has a difficult balancing act. It is a volume business, but it is also a brand. And that brand and the experience it offers matters. An interesting article by CNN (link in comments) looks at Starbucks’ evolution from trying to be a third place to a coffee production line. #retail #retailnews #foodservice #coffee #restaurants
Yes! Those three points are so good.
Strategic Sales Leader | SaaS Growth & GTM Expert | Building High-Performing Teams
8moWell said!