Love it or hate it. But whether you’re running off to the nearest location for this season’s pumpkin spice latte drop or not, there’s no denying that Starbucks has stood the test of time. From unpredictable, rapid growth to forcibly scaling back after declining sales, CEO transitions, and rolling out its latest Green Apron Strategy, one thing Starbucks has proven time and time again is its unwavering ability to adapt.
So, is it their iconic two-tailed mermaid logo? The seasonal, limited-edition red holiday cups? An addictive additive in the cold foam?
Let’s uncover Starbucks’ secret recipe for success that every small business owner should be brewing over.
Overview
- From Small Business to Booming Brand: The History of Starbucks
- Starbucks’ Human-Centered Marketing
- The #1 “Secret Menu” Item—Adaptation
- Uncovering Starbucks’ New Customer Experience Strategy
- Scaling a Small Business
From Small Business to Booming Brand: The History of Starbucks
Did you know Starbucks didn’t start out selling coffee? It’s true. In fact, the last businessman who intended to join as the fourth partner suggested they start selling fresh cups of coffee, but the three originators ruthlessly shot down his idea. After being rejected, he chose to leave Starbucks altogether to pursue his dream of owning a coffee shop. (Spoiler alert: That’s not the end of his story.)
The remaining three founders opened the doors to Starbucks in 1971. At the time, Starbucks was simply a retailer of coffee beans, teas, spices, and equipment; not even close to the powerhouse brand it is today. Their original brown logo was hardly recognizable in its own town of Seattle, Washington.
Over the following years, the three founders couldn’t ignore the success of their fellow ex-partner, who went on to become a successful coffee shop owner, and in 1987, sold the entire Starbucks brand to him. He converted his existing coffee shops to “Starbucks”, revamped the logo, and the rest is history.
Starbucks’ Human-Centered Marketing
So, how did a brand that didn’t sell coffee for over a decade become globally recognized for exactly that?
Human-centered marketing.
Human-centered marketing focuses on consumer needs above all else. Ever wonder why a tall is Starbucks’ smallest cup size? It’s no irony; the company originally offered two sizes only: the tall being the larger of the two. Over the years, customers requested larger portion sizes, and the grande and venti were born.
Starbucks didn’t confuse its previous customers with new cup sizes, suddenly increasing the ounces in the tall. Instead, they listened to their customers’ needs and made a smooth transition without upsetting those partial to change. If only the same could be said about their logo mishap in 2008.
In an attempt to boost sales and take a marketing risk by reintroducing its original, throwback logo in 2008, Starbucks received instant backlash from customers and quickly reversed this move. Had they not listened to their customers, who’s to say where Starbucks would be now? However, by reassuring consumers that their voices are heard, the famous coffeehouse chain overcomes once more.
The #1 “Secret Menu” Item—Adaptation
Although Starbucks now offers “secret menu” items for rewards members on its app, this wasn’t some genius marketing ploy. It was invented by none other than its own customers and Starbucks’ staff, posting their latest creations across social media platforms. No expensive marketing strategy, no A/B testing, but simply being tuned into what its target audience is saying and adapting immediately.
You see, customer engagement tactics don’t always have to be a big, elaborate plan. Hyper-focusing on your audience can provide invaluable insight. You just have to know who your target audience is, what they’re saying, and how to adopt their viewpoint, infusing it into your customer experience strategy.
The ultimate cheat code for adaptation is improving your customer engagement tactics. The more customers engage with your brand, the more they speak up about what it is they’re looking for; the key is to listen once they do. Find some inspiration in the latest adaptation project that Starbucks recently revealed, the Green Apron Strategy.
Uncovering Starbucks’ New Customer Experience Strategy
Starbucks’ Green Apron Strategy, also known as the Green Apron Service, shines a spotlight on the customer’s brand journey from start to finish, highlighting five key customer service moments, from initial greeting to order handoff. It’s no secret that Starbucks created a master recipe book to ensure each order can be replicated precisely, regardless of the location or barista. Their Green Apron Strategy is essentially the same recipe for success concept, just geared toward its team members, as opposed to its products.
Explore the full list of Starbucks’ five customer engagement tactics, or “moments”, below:
- The Greeting
- Offering Glassware or a Mug
- Crafting Personalized Messages on To-Go Cups
- Making a Connection at Handoff
- Keeping the Café Welcoming and Clean
Although still under development, Starbucks has already seen the benefits of its updated customer-centric strategy. Recent reports confirm that not only did the service provided by Starbucks’ employees improve, but stronger customer connections were made, resulting in a substantial boost in customer engagement. But Starbucks didn’t stop there.
In addition to new operating standards, Starbucks began implementing new staffing and deployment models to offer improved schedules for the team and reduce order fulfillment time for customers. With Smart Queue Technology, baristas now aim to fulfill orders in four minutes or less. So, whether you’re a fan of their coffee or not, Starbucks’ ability to seek out and apply company-wide improvements is unmatched in their industry, making it the perfect role model for your small business.
Scaling a Small Business
As a small business, there is much to take away from Starbucks’ marketing strategy. From rolling out new customer engagement tactics all the way down to their iconic logo, no detail goes unnoticed. However, there is one factor that consistently stands out—human connection. Human connection begins with brand storytelling and should only expand from there, so if you haven’t dialed in this key detail, it’s the perfect place to start.
Step 1: Master Brand Storytelling
Brand storytelling isn’t just storytelling; it’s the tool that unlocks the human connection tied to your brand. It encompasses your brand’s purpose, the challenges you faced that led to creation, and it stirs emotion within your audience, allowing them to relate and feel connected, as if an integral part of your brand. Without brand storytelling, no matter how extensive your customer experience strategy efforts are, your marketing campaigns will inevitably fall flat.
There is a large misconception that brand storytelling is simple. It is your brand after all, so how hard could it be?
It is the entire foundation of your brand, the key element for scaling your brand successfully. Skipping this step is like building a multimillion-dollar home without first leveling the ground; it might look beautiful for a few years, a decade even, but over time, it will require repairs, if not an entire rebuild.
If there is any uncertainty in this step, or if you grew a business without establishing a storytelling blueprint, it’s not too late. But before moving on to the next step, you are highly encouraged to master brand storytelling first. For hands-on guidance with tailoring your brand’s story, connect with a reputable digital marketing agency, such as Let’s B Media, for an expertly crafted storytelling blueprint.
Step 2: Evaluate Your Competitors
Checking out what your competitors are up to might feel counterintuitive, but it is essential for growing your company. However, there is one extreme precaution to take with this step. Evaluating your competitors without having a full grasp on your own brand story (see Step 1: Master Brand Storytelling) can cost you your business.
Oftentimes, when growing companies that lack a brand story begin to evaluate their competition, they inadvertently adopt their competitor’s story, too closely mimicking their unique selling propositions (USPs) and pain points—a recipe for disaster. Instead, evaluate your competitors to uncover their brand story and target audience to gain insight into the gaps where your company can break through. Standing out among your competitors becomes much less intimidating when you know what makes your company different from the rest.
Step 3: Read the Reviews
The comments section isn’t for the weak. Customers have no filter and will let you know exactly what they think of you and your company, but that shouldn’t keep you from reading them. Although the occasional off-the-wall rant by a weekend keyboard warrior shouldn’t alter your customer experience strategy, rational negative reviews should.
Customers will tell you what they like and what they dislike; it’s your job to listen. Positive reviews reflecting top-tier customer service should spark inspiration for the implementation of an even greater customer experience. Negative reviews can point you in the right direction for doing just that.
The key is to see reviews as a suggestion box, not a report card. No emotions need to be involved, just an open mind and a willingness to listen to customer needs. Then, carry those needs into step four and use them to scale your business.
Step 4: Experiment and Adapt
Globally recognized companies spend hundreds of thousands of dollars annually on developing customer service strategies, employing teams that constantly monitor consumer behavior. Truth be told, much of marketing is a process of trial, error, and adaptation. Let’s look back at Starbucks, for example.
Most business owners would consider it a failure to shut down thousands of locations, but Starbucks is far from a failing company. In fact, they recently announced that they will be closing nearly 90 stores by 2026. Outsiders will speculate the move as a hardship, but what they don’t know is that it’s all part of a larger plan in Starbucks’ marketing strategy.
Although profitable, the locations that are closing go against their enhanced customer engagement tactics. Pick-up only and mobile-ordering locations no longer align with the Green Apron Service, where creating “moments” is the top priority. This all-in mindset is one of many takeaways from Starbucks that small businesses should adopt.
Step 5: Keep Human Connection at the Forefront
Above all else, keep human connection at the forefront of your customer experience strategy. Just as Starbucks places an extreme focus on tailoring a personalized coffeehouse experience, your company will benefit from a human-centered business model. Every element, from your logo to your calls to action (CTAs), should be geared toward your specific target audience.
By shifting your brand strategy to one focused on human-centered marketing, you will begin to see customer engagement soar. But to climb the ladder and scale your small business, you must master brand storytelling, evaluate your competitors, read the reviews, and be willing to experiment and adapt. It may be your company, but at the end of the day, a company is nothing without its customers.
The Takeaway
With great brand storytelling, you don’t need to understand what the hype is about. Love it or hate it, Starbucks didn’t become the most well-known coffee shop all over the globe by accident. By diving into the history and exploring just how Starbucks overcame adversity time and time again, you can easily piece together the puzzle of its success.
Whether you’ve built a brand from the ground up or are at the very beginning stages of growing a business, don’t neglect the foundation of it all—your brand story. Without this critical piece of the puzzle, the picture will never be complete. Connect with your trusted digital marketing agency today to scale your small business like never before.
- Let’s B Media