A little over a month ago, Starbucks quietly started posting videos on YouTube. With no grand campaign, or banner ads pointing viewers to their stuff, Starbucks just simply started submitting videos. There are three online thusfar, two featuring Dub Hay, Head of Starbucks Coffee Team.
As the comments to the first video (viewed over 25,000 times) show, this is not a strategy for the faint of heart. Companies that decide to communicate with customers directly, and permit reactions to their communication, should be prepared for some that sound like this (as posted by MrFix3 in response to Starbucks' first video):
Overpriced coffee, destroying small coffee shops and greasy spoon diners all over the world. You can keep your $4.00 cup of coffee.
But, they might also receive comments like this one, posted by jakeharvey in response to MrFix3:
You can refuse to buy it. It won't do a thing to them or their bottom line. Maybe you should ask why so many people are willing to pay $4.00, while shunning the $0.50 cup from the greasy spoon diner? One thing is for certain - the coffee is worth more to the consumer than the $4.00 they paid to get it, otherwise they'd keep their money. Basic economics. It's not up to you to decide value for everyone else.
While marketing professionals talk a lot about the new post-Cluetrain world, few seem willing to encourage their clients to engage in this rough-and-rumble world of transparent communication with the market. My bet is that as we all become more accustomed to a new set of marketing expectations (open, interactive, fun, voluntary, entertaining; you'll pardon the word, "authentic") companies will begin scrambling for ways to get hearty conversations like these going.
Meanwhile, Starbucks is once again showing itself to be a leader. Here's their latest video:
I commend Starbucks for taking this road. Personally, I prefer to go to my local coffee shop (better flavor and free wi-fi), but I'll hit a Starbucks once in a while for a change.
I don't love their product, I'm not fond of their practices in regard to squeezing out the little guys, but I have to admit that they're not as entirely evil as some would have us believe.
And, in some cases, you can see how they've built the business through some practices that should be admired and emulated by those who'd rather just sit back and complain.
I know a lot of people who say they won't patronize any chain stores/restaurants. Then I ask where they draw the line. Is a local operator with three or four shops now the big guy deserving of a boycott? How about when they hit a dozen? When does success stop being admirable and start breeding contempt?
"I'll only patronize your business for as long as you're struggling and barely paying the rent" seems to be a foolish way to encourage economic development in our communities.
(BTW: On the $4 versus 50 cents question... for a basic cup of decaf Starbucks charges $2 versus $1.75 at the other place. Not that much of a premium. I haven't seen a 50 cent cup of coffee in over a decade.)
Posted by: Ken G. | January 30, 2007 at 02:10 PM