angus.todd

Serendipitous that I stumble across Liam’s blog post about coffee, as my favourite time of year comes to an end (I speak of course about Roll Up The Rim). A little more than a year ago I made a post that talked about McDonalds’ foray into the caffeinated beverage market, and ever since then (then being the first time I ever consciously thought about why companies did what they did when selling coffee) I can’t help but notice all these promotions that specifically Starbucks, Tim Hortons, and McDonalds have used to try to gain an edge.

Liam talked about customer retention programs like the Starbucks card, but in a market where customers usually stick to the drink (and cafe/company) they already like, how can customers be enticed to switching over to other kinds of coffee. I remember when a friend of mine, who was previously a dedicated Tim Hortons coffee drinker, first made the switch to Starbucks. Unlike some people, he made the switch not because the coffee or service was better, but because of a promotion that allowed him to get a free refill while he was still in the store. When the promotional period came to an end, however, my friend continued to go to Starbucks. He was now a dedicated Starbucks customer… no longer because of free refills but because “The coffee is just way better.” He’d gone from loving Timmy’s’ coffee to calling it “dirty water that was heated up, and served in a cup.”

I have also witnessed people make similar changes from Tim Hortons and Starbucks to McDonalds after being sucked in by all the free coffee promotions Mcdonalds frequently has. Eventually they too have been hooked by their coffee that is “so cheap, and actually really good!”

I personally was one of the suckers who got hooked to Tim Hortons by the lethal combination of addictions to caffeine and gambling that magically comes together every year in the gift to the world we call Roll Up The Rim.

The point being, maybe (given that caffeine is a drug and therefore addictive) winning over customers isn’t about keeping them happy once you’ve got them, but finding the best way to get them hooked.