Starbucks Treat Receipt
This test promotion basically encourages repeat-purchase for once-a-day morning coffee drinkers. It also serves as a value promotion for those who need their second coffee fix.
How does this work? Customers who buy coffee in the morning receive a green treat receipt that serves as an invitation to come back after 2 p.m for a $2 (plus tax) Grande cold beverage.
Will this work? Budgets are tight these days – more Starbucks customers are brewing coffee at home and the twice-a-day (or more) coffee drinkers are taking less trips. This promotion will most likely increase the after 2 p.m traffic and even draw in new customers. How? These treat receipts are being passed around – “Anybody interested in my treat-receipt? $2 for any iced grande drink!” From what I see around my office, there’s always a taker for these offers. But will this be a game-changer for the struggling coffee giant? This is unlikely. I think the slight rise in traffic will stop when the afternoon deal stops. Starbucks should focus on rebuilding what made Starbucks what it is – not a commercial establishment where you can buy books and cds. Oh, and get coffee - but a third place where customers can sit down, listen to good music and enjoy coffee that was especially made for them to experience. Starbucks is being compared to Dunkin’ Donuts and McDonald’s based on price which signals that the value of Starbucks as a brand is declining. Ideally, they should not be compared at all. A good cannot be compared to an experience. When the experience and the service is diminishing, Starbucks coffee is reduced to being a good. When people perceive this as true, Starbucks cannot compete with the fast-food chains.
