Brand Loyalty: Starbucks' Die-Hard Customers

Some more on branding here, with the coffee that made many of us feel a bit out of our league the first time we stepped foot inside a store and the aficionado in front of us ordered his "tall, nonfat, iced caramel machiatto, upside down - oh and no whip." When I entered my first Starbucks, my palms were sweating as I looked the sizes up and down. That guy just ordered a tall, but it looks kiddie-sized.

"Can I take your order, miss?" I'm interrupted by the service rep, oops, I mean the tan, preppy yet punk, barista with the green apron, stylish glasses and nose ring behind the counter.

"Umm," I stutter. I fumble. I fear exile if I order wrong. "A medium coffee?" She doesn't blink, she just gets her cup and writes my order on it. Did I order correctly? What about cream and sugar?

Okay, I eventually figured it out. And now I can order my fancy drinks with the best of 'em. But what kept me coming back for more after that initial culture shock? I think it's got a little something to do with the focus on the experience more than the actual product. The brand experience creates loyal, committed customers.

As committed customers, these die-hards don't just view Starbucks favorably, but they tend to actually undervalue competitors. If you ask a Starbucks customer if they’d like a coffee from Dunkin’ Donuts, you're likely to receive a dirty look, and possibly a small amount of judgment as they quickly answer “No.” Starbucks doesn’t just make coffee, they’ve created a brand with steadfast enthusiasts. Customers like this are valuable in times of crisis. It's probably why Toyota came up with the ads about "Asking someone you know who drives one." This was conveniently right after the recall crisis last spring. They relied on their committed customers to defend their experience with Toyota.

When you walking into a Starbucks, there's a certain mood and ambience. There's a sense of reciprocity that if you're loyal to your cup of Joe in the morning, it won't let you down. It's also about the human connections that Starbucks has created in the store. Unlike some coffee shops that are more about getting in and getting out, Starbucks has a more inviting atmosphere with their friendly baristas. And after you leave, the interaciton continues through its many social media channels. They have committed Tweeters who answer questions, plenty of engaged Facebook fansand they were one of the first retailers to offer rewards through Foursquare. Starbucks does this because they tend to know their audience, the ones who are likely to interact and crave that extra attention through a shout-out in a Tweet. They're the trend-savvy early adopters who like change and innovation. Sitting in a Starbucks today, I even looked around to notice that out of the five of us on our laptops, four of us had Macbooks. (Maybe there's a potential partnership opportunity in the future for Starbucks and Apple?)

Brand loyalty isn't brand popularity. It's long-term dedication from a large number of customers. It's what separates Starbucks from Dunks, and all of their other competitors. That's my PR thought for the day.

*Image found through Google image search.

*Disclaimer: I'm impartial to Starbucks or Dunks - I drink both.

The Value of True Brand Loyalty

A good brand is almost as important as the product or service itself. It helps make consumer decisions easier. It's a marker for trust, for reliability. It separates one company from the next. The relation of a good brand to sales is evident, and companies must make managing their brand a top management function.

True brand loyalty is what every company strives for, or at least it should be. An increase in brand loyalty not only boosts reputation, but it directly affects sales. Brand loyalty is different than having a popular brand. A popular brand can lead to increased sales, but it may not last forever. Brand loyalty means developing a strong customer base dedicated to your brand. Committed customers are a huge asset to a company, defending the company if there's a crisis and generally having a more negative view of its competitors, incidentally engaging in word of mouth marketing.

Brand management has often been viewed as a marketing function more than a public relations function. The three brands I have recently studied, however, took a personal approach, building relationships with their customers. Building relationships? That sure sounds like PR to me. The truth is that every department and every employee helps build the brand. Perhaps the most important employee to help build the brand is the CEO, but we'll discuss that in a later post as we look at a company with a brand not unfamiliar to anyone living in this century; Apple. The next three posts will take a closer look at three organizations, Avon, Starbucks and Apple, to see how they were successful in achieving brand loyalty.

True brand loyalty is an asset to every company, and a vital PR function, so it's important to looks at companies who have done it well. That's my PR thought for the day.

Starbucks Uses Social Media for Business. No, Really

Maybe you saw my title and thought, so what? A lot of businesses are using social media to promote their brands. Well, that's great, but that's not what Starbucks is doing, well not all of it at least. They are actually using social media to CONDUCT business, not just promote it. I got this tidbit of useful information from one of my favorite blogs, Mashable. (http://mashable.com/2009/09/23/starbucks-iphone/)

So yes, they've had Wi-Fi for a while now, that's not what I'm talking about. They are actually providing a way to find the Starbucks closest to you and even pay for your coffee using your mobile device. Hey, if I can pay and be done with it on the bus on my way to work - I'm doing it! That's not all though, with this FREE mobile app, you can customize your own drink and save it, manage your Starbucks card account balance, search for stores with drive-thrus, and invite people in your address book to meet you there.

I thought this was an important feature to write about because it's an example of a business that's really using social media to make getting a cup of coffee easier for their valued customers. And let's be honest, a lot of us out there need our coffee because we're not quite awake enough to function, so if getting it is easier - I'm sold. This is a valuable tool that was obviously made with the customer in mind. That's value in social media. That's smart mobile business.

A lot of companies get a Facebook page or promote an event or their brand using Twitter, which is all good. But somehow they think that makes them progressive and they really give themselves a pat of the back for using social media. The businesses that see the greatest payback from using social media though, are the companies like Starbucks, that see how it can add value to their customers' days. They're not just talking about social media, they are really doing it in a way that will no doubt create greater customer satisfaction.

Getting into social media is a big step for businesses who are still just joining the game. But to really get value out of social media for your business, you need to find a way for it to have value for your consumers first. That's my PR thought for the day.

*Photo from Google images