Customer Experience - The Key To A Profitable Business
You can buy a cup of coffee at 7-11, the Corner Store, Dunkin Donuts and even McDonalds… and buy it for $3.50 less than you can at Starbucks. So I was wondering WHY are so many people Starbuck junkies?
What I found out is that…
Starbuck's didn't just happen to get "lucky." It was a very carefully planned and crafted “assault” that was years in the making. In most cases, when you sell a basic commodity such as coffee, you're forcing yourself into a market that competes on nothing but price.
Well, that's what everyone else was indeed doing. 7-11, the Corner Store, Dunkin Donuts and McDonalds were locked in battle to see who could offer the cheapest cup of coffee. In fact, most of them were providing it at cost as a way to entice customers to come in more frequently. They figured they could make up the lost profit with additional sales.
Starbucks looked at this and said "these guys are all fighting over who can offer a 50 cent cup of coffee. I wonder how we can get these same people to buy our coffee… and pay us $4 a cup in the process?"
Why You Need To Know This And How Does It Relate To Your Business?
Obviously, Starbucks was successful. So how did they do it? In one word… "INNOVATION!"
If you want your business to grow and flourish, then you must stop competing on price. You have to find out specifically what your customers "want" from your business, and then innovate your business to not only give them what they want, but do so in a way that can only be described as "extraordinary."
Customers don't go to Starbucks to pay $4 for a cup of coffee. They pay $4 for the "experience" they enjoy at Starbucks. Starbucks innovated their stores to give their customers what they "wanted." Customers don't want to buy their coffee from a clerk. They want to buy it from a "barista." They don't want to buy coffee from a convenience store or a fast food restaurant. They want to buy their coffee from a specialty coffee establishment where the barista knows them by name and knows what they want to drink without them having to ask for it.
In short… they want an "experience," and they're willing to pay $4 a cup to get it.
What Does It Mean For Your Business?
You innovate your business by asking the right questions and making a point to arrive at answers. Don’t just ask the questions, make sure you answer them. Here are some questions that I think are powerful to ask:
What is the experience your target market is looking for and your competition knows nothing about?
How do we create such an experience for our customers?
How do we communicate this experience to our target market?
You can learn to do this for your business… IF you can discover specifically what your customers want… and create an experience that compliments what they want.
Don’t hesitate to reach out to me to ask for help with this process.
To your success,