I understand that Starbucks feels the need to be everywhere. I can understand their desire to want to be that first cup of coffee you have, anywhere and anytime. But, I’ve always felt that one of the things core to what makes Starbucks…Starbucks, isn’t just the actual product, but the care and skill of the barista. You just don’t get that total sensory experience from drip coffee, made in a hotel room.
You know that old saying, “fool me once, shame on you, fool me twice, shame on me?” Well tonight, after quite a long, but pretty awesome day, I stopped over at Starbucks. It was time to warm my belly from the cold Chicago wind and 8 degree weather. When the cashier announced my bill, I had to laugh. It was $6.66. The last time I made a transaction that had 666 in it, the end result wasn’t exactly so good.
If you buy into superstition, 666, isn’t exactly a number that creates good luck. It does the quite the opposite. Well, 2011 is a new year and hopefully one with more luck than I had in 2010. I’ll let you know if the superstition is true.
Then again, as stated in the movie Titanic, by Billy Zane’s character, “a real man makes his own luck.”
Have you been to a Starbucks lately? Admit it 
You know you have. As of late I’ve started to notice something interesting. Starbucks has more people working the register than they do making the drinks. I’ve never been in a situation at a Starbucks where there were more baristas than cashiers.
They’ve stacked their funnel to take in cash, not provide service. If you’ve ever been in a Tiffany’s or even a car dealership it’s the exact opposite. At Tiffany’s you have a high number of people on the floor to help you and provide “service.” At a car dealership you have a team of people whose sole focus is to provide you great service and an awesome experience. But, there’s usually only a few people who can actually “sell” you the car.
It seems of late we’re seeing fewer companies investing in people designed to provide a service or experience. Instead they’re putting more money into people who are in roles to take your money. Think about an experience at Wal-Mart. It’s nearly impossible to get help from someone on the floor. But, they always have people at the check out line ready to take your cash. It’s nearly the exact opposite at a Target. Going back to Starbucks, I’ve been spending more and more time at Caribou and Peet’s. Keep in mind, I don’t drink coffee. I only drink hot chocolates and I actually prefer the taste of Starbucks’ hot chocolates over the competition.
However, despite my preference on taste, the overall experience is lacking. At a Peet’s from the time between handing over the cash and getting my hot chocolate is nearly instants. So while, Starbucks is/was getting my money faster, they aren’t getting my repeat business. That’s a recipe for disaster, not success.
As the “value” game heats up and companies are trying to find ways to drive new customers and retain existing ones we need to focus less on trying to take their money and more on offering them exceptional service and experiences.
Something to think about.
A few weeks ago I shared with you a list of 5 brands that were succeeding without an investment in social media. This week, I want to share with you a list of 5 brands that are doing poorly despite their investment in social media. The following is being written with sarcasm – please take it as such.
Delta Airlines
Let’s hope the merger with Northwest helps things. A recent Airline Quality Rating Report has Delta ranked 12th. Ouch. The stock price is hovering just over $7.00..sad when you compare it to the $20.00 + it was at 1.5 years ago. But, hey they’re on twitter, YouTube, and have a blog so that should ease the concerns of analysts and shareholders…right?
Target
Sales were down 6.3% in March…but that exceeded analyst expectations. When doing bad is perceived to be “good” you know things are bad. The 2008 holiday season didn’t pull them into the black and they recently had a few rounds of layoffs. But, don’t worry, they’re on Facebook.
Segway
A shining of example of hyperbole. Inventor Dean Kamen lauded Segway, “will be to the car what the car was to the horse and buggy.” Only 30,000 Segways were sold between 2001 and 2007. Considering Segway thought they’d sell between 50,000 and 100,000 in the first 13 months, that’s pretty bad. They still aren’t profitable, but they do have their own community network, a blog, Facebook page, and twitter account.
Starbucks
They have a site dedicated to consumer ideas and engage consumers on twitter, yet they continue to close stores left and right. 3 years ago the stock traded above $35, but today it sits at $12. New leadership, new decor, and a new menu haven’t helped. Maybe a blog could be the answer
Home Depot
As you’d expect, a soft housing market and declining economy haven’t helped them grow. Their stock has decreased nearly 40% in the last 3 years which isn’t surprising when you consider that both revenue and profit are both down significantly. But, maybe their YouTube page will be the tactic that turns that tide.
The sarcasm above is with good reason. Social Media seems to be the recommended solution for all companies. The reality is it takes more than an investment into Social Media to make a business work. Social Media isn’t for every company and even the companies that it’s right for need more than a presence on twitter to be successful.
I hope this dose of reality was helpful.
Head of Social Media at Walgreens. Interactive marketer, innovator, boat rocker, continuous learner, movie lover, risk taker, dad and all around good guy. I'm always up for a spirited conversation. These are my thoughts and ramblings, not those of my employer.
