Starbucks Hopes More Digital Freebees Will Attract And Retain Customers

For a rather lengthy time this summer I was mayor of my local Starbucks, the baristas know me their and often have my favorite latte underway when I walk in the door... guess I'm a bit predictable. At a corporate level, taking a page out of McDonald's playbook, Starbucks is attempting to do the little things better in a hope to grow business and retain customers in a slow economy. The efforts are extending beyond the get it right attitude at the store level. In addition to it's free wifi offering earlier this year and free music downloads, one track per week, the company is now promising it's U.S. customers e-books, movies and other exclusive offers such as no fee access to some paid websites. It's also testing beer and wine sales in a few locations attempting to ramp up the slow late afternoon and evening sales period. 

“This chain needs to refocus on not becoming bigger but becoming better in its existing units,” said Jack Russo, a retail analyst at EdwardJones in St. Louis.

Keep getting my coffee right and give me free digital downloads... what's not to love about that? Well, I guess as long as you are a coffee freak and don't mind paying a premium to get your fix on, the above holds true. If it's strictly the fast food experience and fast food price you are looking for there's a Tim Horton's (or Dunkin Donuts) to be found on just about every other block.

Source: The Globe and Mail

The Starbucks Lean Startup - A How To

Starbucks has taken some of the financial pain out of buying a latte and surfing the web in their stores by offering up free Wi-Fi to customers in Canada and the US. "Enjoy great coffee and the Internet at your fingertips." says the companies website. 


Om Malik, is adding to the mix by letting us all in on his little secrets about lean startups and maximizing your business startup experience at Starbucks expense:

• Almost always favor a single location. It makes it easier for your contacts to drop in for meetings.
• Learn the names of most of the baristas and also take time to have a conversation with them. It helps build a human connection.
• Make the baristas involved in your venture – share your news and make them feel part of your struggle.
• Make sure you buy coffee or something at least three times a day.
• Tip generously – up to $10 a day will ensure that folks at the store don’t view you as a freeloader and a pest.
• Don’t spread out your stuff and take up too much space at the store.
• Invest in great noise-cancelling headphones (to counter the loud background music).
• Keep your mobile phones on vibrate and leave the store for conversations.
• Make sure that the number of people attending a meeting is fewer than four so that you can all circle around a single table.

Think I need a latte.