Howard Schultz came back and saved Starbucks in 2008. His focus was to get back to the coffee experience.
But what happens when the business focuses too much on the bottom line? We forget that the customer refers and recommends the value of our offering by completing the following:
“It is worth it because . . . . ”
Starbucks is starting to focus on drive through business. I have seen several of their “container” locations where they sell the profitable hot drinks, where the customer does NOT have a place to meet friends. Those pesky customers are expensive. The baked goods and personal coffee mugs don’t offset the price of bar stools, WIFI, and public restrooms.
As long as Starbucks customers can answer the statement, “It is worth it because . . . ” then Starbucks will continue to have a franchise. When the customer starts saying, “I can get a cup of coffee that is as good or better, at a price that is cheaper down the street”, then the Starbucks experience will be lost. More especially they will lose the charismatic personal engagement that fuels that expensive purchase. Commodities invite price shopping.
When someone asks your customer, “why do you spend all that money with them?”, what is the response. How would they finish the statement, “It is worth it because . . . . ”
That is your value statement. It is what your advertising needs to focus on. It is your story, your narrative. It is the currency of your business.
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