How Starbucks might reward its most loyal customers

Some of Ron Lieber's ideas make sense; others would be tough -- if not impossible -- to implement. But he's right that Starbucks ought to do something special -- more often -- for its best customers. (Yes, I know that it occasionally surprises with a bonus $5 or so added to my registered card.) Here are a few of Lieber's proposals:

* Make the first drink under $5 free each month after someone has spent $100 in the previous month.

* "Reserve seats next to the electrical outlets for folks who spend the most money at the chain, rather than letting total randoms hog the powered tables for the price of a small drip coffee? And let’s throw some free wireless in once in a while to boot." (Webmaster: It should be free all the time; you're way behind the curve on this, Starbucks.)

* "If I spend a lot there, I want to be able to use a special, shorter line."

* "Throw a members-only party when new products come out."

* "Starbucks should have some Aeron chairs in each outpost and save them for its elite customers." (Webmaster: I want to be there when they try to throw a "non-elite" out of the chair.) (Read Ron Lieber's blog post)

Comments

[imabarista]

Sheesh!
What a selfish self absorbed me me me kind of guy.

None of those ideas would make money for the stores. All of them would cost money. Especially for the bouncers who would have to kick the hoi polloi out of the special chairs when the hoity toity
deign to sit in the store.

Perhaps adding some spare change to the card after a set limit is reached is a good idea. If it is not billed as a cost to a particular store.

I know this type of guy. Comes in, buys a small coffee in a Venti, fills it with H&H and walks out with all the free newspaper he can carry.

Get a life.

It is about the coffee.

[Darleen]

Are you kidding me? Is this guy serious? Talk about entitled. I don't think that a customer who spend 3.50 for a drink is any better than the customer who comes everyday and gets a brewed coffee. A loyal customer is a loyal customer, period.

[ex-sbuxmanager]

How about just having an outlet for every table? That's not too expensive and relatively easy. It's ridiculous that in most stores there are only 3 or 4 places to plug in.

[Darleen]

How about just having an outlet for every table?

That's an awesome idea, I agree with you.

[Melody]

Starbucks is not an airline industry. I don't think pre-boarding is ever going to work in a coffee house! A special shorter line for frequent fliers? That's not effective for a 3rd place environment. It's a coffee house, not an airport terminal. Big difference.

There are just a couple of ideas that I'd like to see, but they're old ones that I'd like to see [i]return[/i]:

From Pour Your Heart Into It (p. 256)

"In the weeks after each opening, we often set up a reward system to thank our customers for their repeat busienss. Starting in 1993, we issued passports that entitled customers to a free half-pound of coffee once they had taken a world tour by trying coffee beans from different origin countries. In other cities, we invited them to try five different beverages, after which they were given a free local market tumbler."

^ I remember the customer passports very well, because it IS the thing that made me a repeat Starbucks customer. It was a heavenly experience. You went in, figured out what new beans you wanted to try, the barista scooped them out and gave them to you, and then you got a sticker in your book designating the new bean you tried. When the book was full, you went back for free coffee.

I have no memory of the 5 different beverage promo, and I wonder if that was outside of the City of Seattle.

My two-cents: Bring back what already worked.
Melody (Long time Starbucks Coffee customer)

[Hirayuki]

How does high money outlay correlate with a need for electrical outlets? Many regular customers who visit every day, if not more than once a day, likely get their (sometimes big and expensive) orders to go or via DT. In fact, I'd say it's the outlet (or simply seating) hogs who try to get away with staying there the longest on a single espresso or bottled Frappuccino.

[John]

The only idea I agree with is free Wi-Fi spots. Having to pay for wireless internet is an old idea carried over from when it was first brought to the public. Where I live, I cannot think of any other establishment where I have to pay for wireless internet access.

Rewarding loyal customers is a great strategy, but it's counter-productive to essentially treat some people as A-List celebrities. Imagine the reaction if someone is kicked out of their seat just because another person spends more on coffee.

[maggiemunkee]

starbucks doesn't have free wifi in all places right now because, as one of the first places to offer wifi, we got stuck in a hyooooooge contract with t-mobile. i would be shocked and appalled if we don't have free wifi once that contract expires.

[sk*nny b*tch]

"First off, don’t make me wait in a long line first thing in the morning or during the afternoon rush. If I spend a lot there, I want to be able to use a special, shorter line. If other customers are jealous, that’s tough; let them spend their way into the short line."

I think I'd rather ring at the long line. And, wow, he does say "me" a whole lot!

[x]

"If I spend a lot there, I want to be able to use a special, shorter line."

Oh that's just sheer genius! Let's create a customer caste system where legendary service goes to the highest bidder!

[barstar]

As much as it bothers people, I think it makes sense that Starbucks doesn't offer free Wi-Fi. By not offering free wireless we avoid multiple customers taking over tables for hours at a time, and can maintain an average turnover of about 20 minutes. Starbucks doesn't gain anything by offering the service for free.

[Ron Lieber]

Hi X -- I'm Ron Lieber, and if you cared so little, you wouldn't be posting, would you?

Folks, the feedback is terrific. I meant the post as a conversation starter, so I'm glad people are responding. I have a lot of this wrong, but you don't start solving problems until you have the courage to air out half-baked ideas.

Yup, Maggie, I do think about myself a lot when it comes to how I spend my money and time. I'll bet lots of you do too. Why can't we admit that about ourselves and not be ridiculed for it?

Thanks for the clarification on Wireless, good to know that the fee will be gone everywhere soon enough. Free wireless seems like table stakes these days, and Sbux should be embarrassed that they don't have it.

To the person who thinks the $3.50 ticket-price person isn't any better than the daily drip person, you may be right. It all depends on how profitable those beverages are. If I'm running Starbucks, I want to encourage people to buy more of the high-margin stuff more often. So maybe a straight dollar-amount-based loyalty program is the wrong way to go.

And FWIW, I don't steal H&H but see no problem with walking out with free newspapers. Isn't that what they're there for -- for people to take them? What am I missing here?

Ron

[Ron Lieber]

X, my apologies -- a post I thought was from you said "Who is Ron Lieber and why does anyone care what he thinks?" It's no longer there (does Jim remove pointless posts?), but I can't edit my last post.

R

[Cindy]

The main problem I have with most of his ideas is that Starbucks strives to be a third place for ALL of its customers. It's not really in keeping with that welcoming atmosphere if people who can afford to drop hundreds of dollars a month get special treatment right in front of all the "non-elite" customers.

One of the reasons that I think the $5 to registered Starbucks cards is a good idea is because it's much more subtle than a velvet-roped section of the cafe and it rewards loyalty over big spending. Anyone with $5 can get a Starbucks card and register it; that's welcoming, and it doesn't favor one group of customers who can afford to spend more.

I know that Starbucks is a business and therefore primarily concerned with turning a profit, but as Howard is so fond of saying: they're not in the coffee business, they're in the people business. The majority of these elite measures seem to assume that each Starbucks is kept afloat by a small cadre of regulars who spend the most, and that isn't true. There are plenty of people (far more than big-spending regulars) who come in a few times a week to grab a drip coffee and who would happily go elsewhere, I'm sure, if Starbucks seems to treat them like their patronage isn't as important as someone else's. Rewarding big spenders makes sense, but shoving it in the face of everyone else doesn't.

[Cindy]

Oh, and Ron? The newspapers are there for purchase. My market used to charge $0.35 for the local paper and $1 for the NYT, $5 on sundays.

[STARBUCKS GOSSIP webmaster]

Ron -- I did delete X's post because, yes, it was "pointless."

[Liberty]

I agree with some of Ron's statements. SBux does need a loyalty program, but some of his ideas would be difficult to enforce.

Nearly everyone now drinks coffee, whether it be at home or out. What's convenient usually works best. I am a SBux customer, but when Caribou was on my way to work, I stopped there. Before than, I went to an independent, because it was on my way to work. Point being - we get used to the taste of whatever we're drinking.

When I went to the independent- she gave me a free drink after I purchased 10 - boy I loved when I got to 8 - only 2 more to 10! When SBux opened around the corner, I didn't move over to there - because she had me with a loyalty program. She's retired now and moved from my area - so now I'm a SBux customer. I like the coffee, there is 1 new place that just opened closeby and if that place around the corner comes out with reload cards and a program that gives me a free coffee with every 10 - I'm there.

[JMW]

These are bad ideas -- the last thing Starbucks needs is to turn into an airline. They already ventured into serving airline-quality foods. Now they need "frequent drinker" programs? :)

Indie shops sometimes do the "buy 10 get one free" cards. But, in my experience, usually not the good ones -- and they do it because they aren't Starbucks and don't command the _brand_ loyalty.

Likewise, airlines have frequent flyer/elite/etc programs because they generally have little brand loyalty. The air travel industry is an oligopoly and mostly people want cheap seats; they don't identify with Continental, American, etc. The "incentives" offered by FF programs compensate for the lack of a brand with "lock-in."

Starbucks doesn't lack a brand. The minute the company "needs" a frequent drinker/elite system, they are basically a commodity and have much, much worse problems to think about. Let's hope things aren't that bad yet.

I remember the customer passports-people LOVED them! If we want to know what will encourage customer loyalty-ask the customer-then do what makes sense! $700 chairs-maybe not so much, IMHO...Stamp cards for a free drink every so often...maybe-it worked FINE in the past...Just remember: it's about the customer AND the coffee.

[EXTRA FOAMY]

Starbucks already rewards loyal customers with the "third place" and legendary service, not to mention JSY..These are the reasons for return and loyal customers, because of the quality they get from Starbucks..we should go back to these roots, and train and implement these practices as well as improving the quality of our products more than appealing to a persons greed. Customer's should recieve the same service whether it is their first visit or their ten thousandth visit. What a great idea, lets selecet a portion of our customer base and let everyone else know how much more we value their visit, and drive away another portion..

[Jewels]

I don't know about other stores, but in my store, there is a subtle "shorter line" for regular customers. If a customer comes in regularly enough for us to know them and their drink, we will start making it as soon as we see them walk in the door or sometimes when their car pulls in the parking lot- even when it's busy. So they still have to wait in line to be rung up, but not usually for their drink.
This occasionally frustrates "non-regular" customers, but usually it's so quick and subtle, they don't notice.

[ron lieber]

good stuff jmw -- though i'd argue that starbucks has lost much of what made it unique and special. it isn't as good/fun/neat as it used to be, and competitors of all sorts are squeezing it from above and below. it is approaching commodity status, and putting a loyalty program into place is much easier than getting that specialness back.

Ron,
One of the things that *$s has lost along the way IS a customer loyalty program!!! We had it in '93. Bringing it BACK isn't selling out, it's getting back to the specialness that we once had.

[BOSTON STARBUCKS REBEL]

I agree. Regular customers should be recognized and receive their beverages before other customers. I think that is a reward for coming into Starbucks so often. Being recognized by name, beverage and having prepared ahead of time. Thats the best way. Thats being legendary. The other ideas as listed above are just plain stupid.
Also, people with Starbucks Duetto Visa Cards constantly receive rewards on there.

[Kittymoose]

Regarding the free drink after 10 idea...

At my store, we have a few regulars who come in every single day, sometimes two or three times a day, for their drink (usually drip or tea). Every so often, we tell them that their drink will be on us. Its not really a "rewards program", but it does reinforce the friendly atmosphere. Surprise and delight :)

[SoCalSnowBunny]

You've hit it on the nose, Ron. It would be easier to put in a loyalty program, much easier than getting back to our core. But I think these easy decisions are what got us here in the first place. Customers wanted more retail merchandise, so we provided it. Customers wanted breakfast sandwiches, so we provided it. Customers wanted speed, so we provided it (through automation).

The problem is, we don't have a "core" customer. Our customers transcend all demographics and socioeconomic status'. What that means is that what one customer desires, the other despises. That makes it really difficult to just "go to our customers and they can tell you what to fix".

For this reason, we need the right leader in place to make the right calls, set the right vision, and for all of us partners to understand that while we may have an occasional customer provide feedback that they don't like this or that, that we are open and listen, and not minimize how they feel. But it is also really important for us to share with our customers that they transcend so many demographics that it forces us to make some hard choices, sometimes.

I also love the coffee passport option for customers, which I believe ties into the core, and doesn't discriminate against any particular demographic.

[Supposed Eric]

If you burn the customers who haven't demonstrated their loyalty yet, they won't become loyal.

Don't discriminate against new customers. Your loyal customers are going to die someday.

The round-the-world program described above is a nice idea and can be equally beneficial to new customers and loyal customers.

[Melody]

Kittymoose, I've definitely had that happen to me a number of times where I've gotten a free drink here and there, just because the baristas see my face so very very often.

But in the end, the thing with the cards and a free drink after 10 beverages, is that it does cost in the end. Someone pays the cost, and it's a program subject to abuse. So what if I buy 10 short lattes, and my free drink a quad-venti-too-much-syrup-bizarro-drink? There really is nothing free in life: we pay somehow for it somewhere.

Socalsnowbunny: Yep - I favor the coffee passports for customers - yes there is a cost associated with it, but I think the benefits are so very high, it's worth it. It ignites enthusiasm for coffee beans, which is something Starbucks very much needs to do right now. And of course, anyone can participate in buying coffee beans: It's not totally a demographic driven program. Lastly, you know what you're getting when you finally get your free coffee beans - there's limited room for the same kind of abuse as with the 11th drink is free dynamics.

Sigh, I do miss those customer passport books. I remember them so well, and would not be a customer today were it not for them.

My last comment, if you're heading to an indie coffee shop really because you get an 11th drink free, it gives me pause for thought. Frankly, I think that Starbucks can create an experience where it is unnecessary to have such gimmicks to retain customers. Someone above captured the touchstone of this argument: Airlines desperately need to rewards programs because of low brand loyalty, but Starbucks is simply not in the same category of businesses.

[SoCalSnowBunny]

Melody you are quickly becoming one of our favorite (and most rational) customers! I was attempting to somehow capture your last point (regarding the gimmicky appearence of loyalty rewards program) and you said it perfectly!

I have the Duetto sbux visa and can tell you that I rarely EVER have to pay for drinks (even if I didn't have the partner discount). I use it as my primary credit card (always pay it off same month) but through charging my vacation costs, school tuition, whatever, I always have a balance of $50-$125 of duetto dollars to use. As well, I just received a note in the mail a few weeks ago that "as a surprise and delight" they added something like $7-8 dollars onto my account. For no reason (other than being a loyal patron).

So, there are definitely ways to maximize the rewards programs already set up and in place, I think we just need to share this knowledge with others.

Free newspapers create enough loafters in our stores. Free wireless could only exponentially exacerbates the problem. Perhaps lowering the price to give at least the illusion of value could be a better strategy.

[Legendary or Bust]

Can I ask what an independent coffee shop is? Is SBUX the largest independent coffee shop? Define.

[SoCalSnowBunny]

I agree Anon- I think free wi-fi is DEFINITELY not the blanket we want to provide. Now, free wifi with a minimum $5 purchase, I think that is reasonable (your 1 day id and password could print out on your receipt, perhaps?).

But it makes no sense at all to provide the free wi-fi with no customer tie in. I have visited way too many stores whose lobbies are FULL now, and these are paying customers!

[BOSTON STARBUCKS REBEL]

*FLASH*
Will Howard give us the new 32 GB iPod touch?
*FLASH*

This is how I reward great regulars:

I remember their drink(s), take a personal interest to their lives, recognize them the second they walk into the store, and have their drink ready for them regardless of the long line. I don't need a gimmick or free samples, or even customer appreciation parties.

And fyi, I'm a partner at one of the busiest stores on the east coast. If you come in everyday and drop money on the table for Starbucks, you better believe that I'll remember your drinks and provide first class customer service.

[ron lieber]

right on, 12:52

if only there were more partners like you (or you weren't so preoccupied with high-class egg mcmuffins), sbux might not be in such a fix...

I think the only thing there should be a seperate line for, is poor folks like me, that just want a cup of coffee, and had to wait in line for all these people that have drinks that take 10 minutes to order, I just want a damn cup of coffee!

I love all this first class service - and this is how you reward loyalty - but read back to your posts on tips. Cash in you pocket means something to you - it means you're recognized. Cash in my pocket means the same thing to me. Thanks for making my drink, recognizing me, etc....but drop some cash on the card.

SBux needs a good loyalty program - that doesn't have to do with facial recognition or legendary service - because bottom line....the dollars always count.

An Indie shop, for example, is Happy Beans in Podunk - and although SBux is independently owned, its also franchised and there is one every corner.

[Equal Among Equals]

"putting a loyalty program into place is much easier than getting that specialness back"

Exactly, and that is exactly why this is a difficult time for the company. I think that for Howard this transition has become personal - cost will not be an issue, he will do all he can to bring the company back to the fundamentals. Sure, it may involve the introduction of loyalty programs, but this transition will be more than just flashing lights and gimmicks. Things I could imagine seeing, within the next 2 years:

- Free wi-fi
- Fresh ground COW
- Manual style bars
- at least one ground breaking new beverage, as influential as the Frappuccino.
- A comprehensive revamp of the food program, focusing on components that actually taste good with coffee.

Just some ideas for the "five specific, bold “consumer-facing” initiatives that will be a major catalyst for change and transformation," that Howard was talking about. I used to think manual bars would never be back, but I honestly think Howard might be just crazy enough to try.

What are your predictions guys?

[BOSTON STARBUCKS REBEL]

I think you're right. He definitely will try to identify the stores which could use them. If those stores do come into play, I'll definitely ask to transfer to them. We can rock it out.

I hope the Clover machines go worldwide!!

Ron, while I appreciate your support of 12:52's statement, it completely negates your whole premise, so I'm left scratching my head here.

It kinda supports our premise that sometimes (dare I say?) our customers aren't the best source for making decisions. It's not that I don't value your opinion, but can you imagine if we went through all of the work/cost of implementing your original premise, when we could have met your needs in the way that our 12:52 partner suggested?

Fresh ground COW is actually being implemeted. No more pre-packs. If I remember right, with in the next couple of weeks even. As far as the manual machines...they don't really work so well anymore with the high volume we get. It does take a lot longer to make a drink that way. I think a good idea would be to have both a Verismo (what most stores use now) and a manual machine. Cause there's the customer that wants their drink RIGHT NOW and then there's the customer that wants higher quality. I've worked with both machines and it IS harder to get a good quality shot out of a manual because there are so many more factors involved...so we'll have to re-train EVERYONE...And then I hope that all of the baristas on bar actually care about that single (or double) shot that they are pulling and don't forget when they were supposed to stop the shot. Don't get me wrong...I do love the manual machines...but how often do you wait in line for your drink for longer than you think is necessary...and then when it's explained that we had to grind the coffee, tamp it, insert it, then pull the lever and count before just the espresso for your drink could be made...oh, you ordered a quad? That will be the same process another time...nobody will listen or believe the poor barista that they were just trying to make sure you got the best quality espresso in your drink. If we weren't so busy, it would be fine, but I work at a drive through and there is NO TIME for that.

The last poster at 3:39:43 PM said just what I was thinking.

I don't think we'll ever go back to manuals. Didn't Starbucks make a promise not to go back? It would not only be extremely expensive to get new machines, but to train the baristas too. Customers might be confused, not understanding why the method matters, just hoping for the consistent flavor.

[Jewels]

BSR-

I think howard will be giving US those 32 gig ipod touches, thankyouverymuch.

ha ha... just kidding. you know there's no way any store can win through honest, hard working measures. someone is bound to cheat.

it's been great fun trying, though!

A shorter line for 'loyal' customers is the most preposterous thing I have ever heard.

[Equal Among Equals]

I used to agree with you about the manual machines, but if you've been into another cafe recently there are a ton of labor saving devices that are incorporated into new machines to help make the process easier and more consistent. Sure, they're more work, but if we are going to try to separate ourselves as a premium brand, we need to produce premium product. It would be difficult, but I think Howard takes it that seriously. Honestly, I think a majority of our customers would prefer it. It's a long shot, but I think it may be on the long term agenda (AKA as the Verismos are financially depreciated).

As far as pre-packs going away, the note about grinding COW was not an official announcement, but rather a "be prepared to receive bullets...". The rest of the memo was about changing process at the roasting plant designed to keep the freshest coffee available in the stores. I read it more as "If we have bullets, you get bullets..." I think going back to bullets and fresh ground coffee would involve more than just using the current methods. Once again, other cafes have machines that at the push of a button freshly grind coffee to the appropriate weight, directly into the brewing basket. In fact, I think they may even have that type of device at 7-11.

[CoffeeMan]

I had suggested this once before....not really sure how to make it work, but offer free wi-fi for valid Starbuck's Gift or Duetto Card users. Great perk! (pun intended).

Another idea would be a frequent user point system. Instead of buy 10, get one free....maybe offer discontinued merchandise, bring back the tee shirts (!), or offer soon-to-be expiring bags of coffee; stuff that's going to be thrown out anyway - most customers would appreciate the gift (most, not all, unfortunately). I'm sure there's a way to do this on gift or Duetto cards. Provide a print out with receipt....you now have 25 points and are eligible for a variety of 12 ounce bags of coffee we have on sale at this store.

Loyalty. Just some idle thoughts.

[Just Sayin']

I, too, agree fully with what the person at 12:52 stated.

Our most loyal customers KNOW they are loyal simply based on the fact that we know their drink, their cars, their kids, their pets, where they went on their last vacation. We know how much foam and that they want it steamed to 140 degrees. They know that once we look up an see them in line, we've already begun their beverage...even if they happen to be the 4th or 5th person in line.

I've talked about service to these individuals. What we see as work and making our lives easier by remembering drinks, they see as them being something special. And they SHOULD feel that way. Starbucks is a luxury item, even if "every one" consumes it. There have been numerous times where we've told regulars "It's on me" today...but even that's not what brings them back. What brings them back is the feeling of being in the "third place." I cannot tell you how many graduation parties and other various get-togethers our customers have invited us to because they felt we were as close to them as friends...or family.

It isn't just about striving to create brand loyalty, it's about treating each customer as an individual and giving each and every one of them special attention. THAT'S what brings our customer base coming back each and every time...even if that regular only comes in once a week.

[DallasSM]

I think a frequent customer card would be a great idea as long as it were available to all customers. The purpose is to create more regulars. If we have a VIP line, we risk upsetting people who may be new to our stores.

Frankly, the idea that Starbucks is headed in the general direction of offering a loyalty program is absurd.

First, let's look at this from a cost standpoint: Starbucks HAS the customers. Even if the quality were to decline a few more shades, the majority of Starbucks customers would still flock to the stores. Starbucks has defined coffee culture for literally millions and they think of Starbucks when they think of coffee. People go to Starbucks more times than not for quick, polite service and not artisan-quality beverages. The cost of instituting a loyalty program would be expensive and provide extremely little in the way of a return on the investment. Plus, you have the risk of alienating a group of customers. Those who don't qualify for the "elite status" certainly wouldn't go elsewhere at first, but why tempt fate and put off some customers with a lame-brained program when you don't have to.

Next, I believe Howard decided to nix a lot of how the Marketing Department works. The promotions that have rolled out of Marketing in the recent past have been trite, expensive, ineffective and unfocused. Throwing a promotion/ program out like a loyalty program rings of all of those things. Customers would look at it and ask themselves why they need this deal, how it can benefit them and is it even worth the time or effort? The majority would answer a simple no and the return to Starbucks would be nil.

Howard would never suggest such a horrible idea; part of his return includes a refocus on Starbucks' core: coffee and the customer. An ill-formed loyalty program neither focuses on coffee nor would be good for the customer.

Finally, the sheer of idea of having a segregated store for a Starbucks "highroller" is laughable. The cost of cafe seating is already prohibitive considering the cafe area only costs the customer and provides little fiscal benefit. You could honestly have the bar and enough room for people to line up and the store would cost the company less cash. Less store = less needed real estate = lower costs. Having to duplicate seating for a "VIP area" costs more real estate and having to decrease already available seating proves to be less attractive to the customers who do go to Starbucks for that sort of thing. Frankly, knowing I have a VIP seat because I spent more cash last month/ quarter/ year is not enough to make me want to spend the cash in the first place, either.

Starbucks knows it needs to appeal to the mass consumer. While making your brand more exclusive can work for some companies, a mass merchant like Starbucks cannot survive with that business model. (And, yes, Starbucks is moving into a mass merchant category.)

Playing intelligent moves like a direct, smart focus on the customer (better training, more efficiency, better products and services, etc.) and the coffee (better quality, innovative drink recipes, etc) will be the best thing Starbucks can do for itself.

Implementing poorly thought out strategies that only prove to alienate your customer will only negatively impact your business.

why should we reward you for being loyal? it's your choice. or your addiction.
why have people become so demanding and expect to be rewarded for everything?
there is no such thing as a free lunch.

How to reward loyal customers?
Lets see: good service and great coffee - wow what a concept.

[BOSTON STARBUCKS REBEL]

How about lap dances?

[ron lieber]

235 (and 806) -- the problem is, there are not enough partners who do the whole recognize/reward thing well. and it doesn't help people who travel a lot (in town or out of town) but are loyal to starbucks wherever they go.

818 -- Thanks for the well-thought out response. The flaw here I think is the whole notion that Sbux "has the customers." It may now. But every time I turn around, I see new initiatives from BK, McD and Dunkin. Some people won't sample those options, but many will. I have, and I like em. Maybe I'm low-brow, but there you go.

And, after years of hearing about coffee shops going out of business, I can't turn around now without running into one with super high-end beans. Love that stuff. Much better than Starbucks.

It's just wrong imho to assume that Sbux has the customers -- and thus will keep them without doing things better or doing things different.

[Darleen]

To the person who thinks the $3.50 ticket-price person isn't any better than the daily drip person, you may be right.

Ron, that would be me. Yes, I do believe that every customer should be your favorite, no matter what they spend. I would not treat someone any better just because their drink costs more. A loyal customer is a loyal customer, no dollar amount needed.

[Mark Harris]

When I read the opening premise to this conversation, I thought to myself "what a bad idea, absurd and ridiculous".

Then Ron Lieber jumped in to participate.

And the lively, open and thoughtful dialog emerged, as it always seems to at this blog.

And I felt compelled to participate.

Its really great to see partners and customers in open and constructive dialog like this.

If Starbucks has employees like all of you throughout the company, then I think the future looks brighter already.

As a customer, I'll make a few comments about rewarding loyalty. Most of this has been covered, but I'd like to weigh in here.

Loyalty programs are more often artificial and can even be elitist which will turn many customers away. And uncecessary at Starbucks in my opinion.

Frequent drink cards are a nuisance to me, at best a lot of work for little reward. And I always lose the punched card before I get to 10 anyway.

Segregating areas of the store for elite customers is a horrible idea. And special "first class" lines for frequent customers is ill-conceived as well.

Creating elitism may make a few frequent customers feel self-indulged and special, but it will alienate the majority of customers that come in every day. The majority masses generate far more revenue than the few elite.

Now, if a partner recognizes a regular customer when they walk in the door and gets a head start preparing their drink, that's brilliant (and not elitist or artificial). Just great customer service.

When I think about why I step into a Starbucks, its fundamentals ... what I think is refered to here as the core business. I'd like a decent product, friendly and courteous help, and an inviting atmosphere that makes me feel welcomed.

When you talk about the "third place", that sounds like a great place to get coffee. It conjurs up a "romantic" notion of old style coffee houses that are warm and inviting where people come to gather and congregate and engage in spirited discussion (with a little help from the caffeine).

It is about people interacting, to some degree, not people isolated at tables with their nose buried in their computer. And its definitely not about some elite section of the store blocked off for a few so called loyal (and snobby) customers.

Stick to the fundamentals. The gimmicks are unecessary. This will continue to make Starbucks a great place for coffee.

Mark

And just for fun, be sure to cast your vote at Starbucks Drinks - Love 'em or Leave 'em. Are you a fan or naysayer?

[Kat]

"I think the only thing there should be a seperate line for, is poor folks like me, that just want a cup of coffee, and had to wait in line for all these people that have drinks that take 10 minutes to order, I just want a damn cup of coffee!"

One of the things I like about Beaners. They have a can you can drop the exact change in, and pour your own cup of coffee. No waiting if I just want a simple cup of coffee.

But back to Starbucks, most of this guy's ideas are not good ones. You start making some customers feel like they are secondary in status, they aren't going to come back. I have no problem with giving little perks like a free cup of coffee here and there for regulars, or every time you spend 100 bucks on your card, but things like 'special lines' and 'reserved seating' is just going to put people off. It's a coffee shop, not an exclusive club, and it shouldn't be made to feel like one.

[Roland]

BSR, your idea about lap dance is great. Were you at my store the other day? We actually just discussed that at my store, since we were thinking about what to do with the space where our warming-oven was supposed to come in last week. So we decided to get in a pole as well and try out some pole and lap dance to attract more customers.

Isn't it funny how people who never met each other sometimes have the same wicked ideas?

[Ron Lieber]

The whole notion of alienation of non-elites is interesting. It doesn't happen on the airlines, but perhaps that's because people don't have that much choice at the end of the day about who they fly. They won't go two hours out of their way to fly, say, JetBlue, which has no elite stauts.

So would people go five minutes out of their way to avoid Starbucks if they were offended by elite status there? Two minutes? Ten minutes? Or would they just accept it as a fact of life, as they do when they travel?

[HopkinsBella]

Nice, Mark. What you list in the following paragraph is essentially what everyone is after, in discussions of how to improve Starbucks:

"When I think about why I step into a Starbucks, its fundamentals ... what I think is refered to here as the core business. I'd like a decent product, friendly and courteous help, and an inviting atmosphere that makes me feel welcomed."

That's really all I'm after, on top of really really good coffee.

A note about customer loyalty and the concept of distinguishing an "elite" customer from a "non-elite" customer: how really would Starbucks determine this? I know that partners define their regular customer base by familiarity on seeing a person. But for those who travel a lot (not me at the moment, but my fellow recruiter) who heavily patronize their "home" Starbucks locations, should a partner at a store just assume that an unfamiliar face means a "non-elite", new/disloyal/"non-elite" customer? Partners more or less already admit that there is an unofficial "elite" status garnered by those who frequent a particular store on a regular basis, thusly currying favor and familiarity. It's not necessarily a bad thing, I'm just saying.

[ineedsoy]

How about rewarding customers by not treating them like crap when you've run out of soy and a customer orders a soy-whatever and then responds [not in a rude way] thanks, they'll just go to a different sbux.

Happened this morning here in Denver, the SM [who took the order] gave the snottiest look and worst attitude as if she expected me to order something else with MILK. Lactose-intolerance perhaps? Sadly, I will never go back to that store because of it. Not the lack of soymilk, which may just be a problem with ordering/shipment, but because of her attitude. Almost gives you a bad taste about sbux as a whole. And she's the SM? Amazing.

How does one complain to a DM if it's the SM that you have an issue with? Thx.

[Camille Claudel]

I really appreciate Ron's brainstorming but it seems to all focus around "me/us vs. them" and how to reward "me/us" and leave "them" out. I do not think that is a way to build loyalty. I think it is a way to lose customers.

Starbucks has not lost it's brand recognition but is losing "the _brand_ loyalty". When most people think of Sbucks, negative thoughts and feelings come up vs. the "olden times" when we all smiled.

Howard et al are scrambling to try to regain brand loyalty and erase the highly negative "brand recognition".

Thanks!

starbucks has created a monster- they tell their customers that they are special, that they need to have it their exact, ridiculous way, and have made a business out of it.

they deserve the entitled whiners that they get.

i love how people will never admit when they're being rude themselves, but at the same are far too quick to lash out at the supposed rudeness of others. way to go guys. let's just further the hypocracy of this company

[ee]

Subway used to have stamps that once filled up a card, the customer got a free sandwhich. They were discontinued a few years ago, and I finally asked an employee why. Turns out some employee stole rolls of the stamps and sold them on ebay. That's a reason why Starbucks will never go to punchcards. The company is too big to be able to have consistancy and make sure the system isn't abused. Kind of like how they changed the recovery now coupons to being thicker and folded to avoid copies. I know it still happens, but think about the bigger picture.

In the meantime, keep making those loyal customers feel special and appreciated, because they are. The guy at my store who comes in every morning and gets a venti coffee and the woman who orders 2 venti mocha frappuccinos a day are on the same playing field, in my opinion.

I know we feel really bad about it when we're out of stuff, like soy or lemonade, at our store. She might have been stressed out that she was losing customers over the lack of soy. She should have tried to disguise her stress better, but it IS frustrating to lose a customer over something like that. Sometimes the order situation is out of our hands. We were out of "chocolaty" chips for 2.5 weeks once, and my SM put them on the order every time he could, but they just wouldn't send them. Don't let it turn you off of Starbucks though. You were totally right to say you'd go to another Starbucks, since you need soy. I wouldn't take her reaction so personally though as it could have been any number of things.

[Kat]

"starbucks has created a monster- they tell their customers that they are special, that they need to have it their exact, ridiculous way, and have made a business out of it."

That's not just Starbucks, though, it's happening all over the place. We are barraged with ads telling us we 'deserve' this or that, that we are special and should get special treatment or 'treats' as a result. But then everyone ends up thinking that they are that special someone and that everyone else...isn't. It's kind of a ridiculous notion. We try and make every day a holiday, always think we deserve a treat or reward, and that's just not the case. Don't get me wrong, I enjoy it when I'm given a free cup of coffee or some sort of little perk, but I don't have my head in the clouds thinking that somehow I *deserve* it.

"So would people go five minutes out of their way to avoid Starbucks if they were offended by elite status there? Two minutes? Ten minutes? Or would they just accept it as a fact of life, as they do when they travel?"

I would. If I feel that I'm being treated second class? I'll take myself to a place where I'm not...and there is plenty of competition out there more than happy to cater to that.

[ineedsoy]

Thanks anon 12:23:35. I tried to rationalize the same as you in that maybe she was having a bad day. At least I said I was going to another SBUX and not a different coffee shop, but no matter, you would've thought I'd just punched her face. Just a frustrating sbux day for this customer but at least the sbux down the block had soy! So, not all was lost...

[sbuxnewbie]

INeedSoy:

I understand your problem. We've had problems in our district getting soy n occasion - sometimes every store runs out at the same time!

When that happens, we will ru to the nearest Hannaford and but a few boxes of their Silk Vanilla Soy, but we also warn the customers that it doesn't taste the same - the Silk we sell has been specially formulated for better steaming - it is a thicker product.

When we do run out, if we're not running our butts off, i will aks the customer to wait for a few minutes, and call the nearest store to check that they have Soy in stock - no sense in having the customer go on a wild soy chase, if there isn't any to be had.

Thanks for staying with the Company, if not that store. And remember that most stores have business cards for both the SM and the DM in card holders by the pickup window.

[ron lieber]

HopkinsBella: My ideas don't work without a card that you'd use everywhere -- and not a punch card, but something that tracks your purchases as you travel/drink in different locations.

Perhaps folks who wanted to get advanced status would have to have a Starbucks card -- or even a Duetto card (great way for Sbux and their card/bank partner to generate additional revenue).

SBUXNEWBIE -
Our DM always tells us to buy plain Soy and add the Starbucks vanilla to it when we run out. Supposedly it helps it taste closer to what we normally have

[HopkinsBella]

Ron, I still don't get a few things about your "elite" rewards setup. How would a partner KNOW when an "elite" person would be "elite" on sight, prior to waving/using the nifty little card at the register? No partner can.

And also, would Starbucks really truly be interested in the concept of the data-housing and management of a centralized source to track customer purchases by some sort of actual customer ID system--which is essentially what the end result would look like? Or pay for a third party to manage this info for them? I know that DB guys (and gals) are a dime a dozen, but a truly worthwhile one (or several) isn't cheap.

I don't mind the concept of "elite" programs. I'm not convinced that the options you put forth are the best way to win customers over/get them to invest in Starbucks even more.

[BOSTON STARBUCKS REBEL]

I heard that 100 stores are getting new espresso machines. Can anybody tell me what their make and models are? Thanks. And what makes them so special. I wish we were going back to the La Marzocco but we aren't. Or are we...

[exbucks]

In response to INEEDSOY...I agree with your sentiment that a SM shouldn't react that way. If you don't want to be in customer service find a new job. If you are having a bad day, put someone else on register. As for getting ahold of a District Manager...trust me, there is more than one "partner" in any store willing to throw their SM under the bus. Ask.

[BOSTON STARBUCKS REBEL]

Would that be a short bus?

[Legendary or Bust]

A 37-year-old American businesswoman and married mother of three is seeking justice after she was thrown in jail by Saudi Arabia's religious police for sitting with a male colleague at a Starbucks coffee shop in Riyadh.

http://www.timesonline.co.uk/tol/news/world/middle_east/article3321637.ece

[Sbuxpartner]

As far as "loyal customers" go, I have a few thoughts. I have been in sbux management for a little under three years now, and was hired as a "recruited parter" (which means i was not promoted from within).

I have managed two different stores, in the same city but different areas. There are two types of loyal customers. There are the ones that appreciate everything we do each day to make thier trip to our store a great experience and then there are those that feel that they are allowed to be rude and disrepectful, but still feel entitled to recieve legendary service. Some stores have more of one kind or the other and I do not think that it depends on the baristas but rather the clientele. At my current store we have many more of the entitled customers than the genuinely nice ones. We all still strive to give them legendary service with a smile, but it does make it much more difficult when they are standing at the counter on the cell phones, too busy to even look at you much less say thank you, smile or return the sentiment of "good morning." I know that I joined Starbucks because of thier guiding principles and the way that they treated their parnters. Not the way that we treat our customers.

Legendary service is something that some people have the ability to provide and some people do not. It cannot be a learned skill IMO. I always try and hire those people that I can tell have the gift of being genuine with every customer. The barista skills can be taught.

Also I am always sure to treat every single one of my partners with the utmost respect and care, and they in turn pass that on to all of you as customers. Its not rocket science. Happy partners = happy customers.
There is no need for ridiculous punch cards or incentives. Genuine care and feeling is what most customers are looking to feel.

i agree with people about separating frou-frou regular customers from other regular customers who order drip coffee. my store is in an area with a lot of hotels and restaurants. as a result, we get a lot of valet guys, bellhops, doormen, busboys, etc. they know tipping etiquette and what it's like to be in the service industry and are pleasant EVERYDAY. they also are more likely to drink drip coffee.

almost forgot my point, don't separate them! it's even more profitable to give away drip coffee than lattes.

I am another frequent customer and may be one that you would consider high maintenance...my drink is a grande, only 2p vanilla, NF milk, caramel macchiato.
Anyhow, I frequent the same Starbucks about 4 times during the work week and always at about the same time. I wonder what is enough? The baristas never seem to remember me or my drink, I'm never rude to them or talk on the phone there, and I always try to tip even when using a gift card. Is there something I'm missing?

I also just have to ask out of curiousity...I register quite a few SB cards on the website. Someone in a previous post mentioned that SB rewards those who register occasionally w/ a few extra bucks? How does that work? Is that true? I have not seen that happen to me yet...but if so I think that and a great drink are plenty reward!
Why not leave it at that?

[Aralia]

Hey anon 7:25:13. Don't take it too personally. I'm been an SM at my store for over 7 months and I still have trouble remembering my regulars orders. Honestly its not that I do not care to remember ( I feel bad when I dont remember a regulars drink) but sometimes the drinks just won't stick. I'm sure there is at least one person in that store that does know your drink. I know for every regular I don't remember two of my baristas are calling out their drinks before they order.

SB does give out $5 bonus once in awhile to registered SBUX cards as 'suprise and delight'. The last time they did it was in Nov I believe. I'm not really sure how they choose which cards.

[CalgaryBarista]

"and although SBux is independently owned, its also franchised and there is one every corner."

Um...I don't know where you got this idea. Starbucks is NOT a franchise operation.

[SoCalSnowBunny]

I have the Duetto Starbucks visa card that has the starbucks logo on it, and that is how I get the rewards $$$ that I spoke of earlier. It's different than a reloadable Starbucks card, its an actual visa credit card you have that provides rewards as Starbucks dollars. I also got 0% for 1 year when I signed up, which was a good deal in my book (I usually pay off monthly anyhow, but even so it's a good apr)

[Adrienne]

TO clear up the franchise issue. The answer is both yes and no. While they don't sell individual franchises, they will 'license' other companies like Hen House or Vons, and have a nearby DM help the store out with setting things up. So there are no "Franchise" stores but there are "Licensed" stores.

Hope that helps.

[12:52]

Great points,Sbuxpartner, and I completely agree.

Even with the regulars that come in and treat you with a bit of disrespect initially, I find that with a bit of attention and just getting to know them a bit day by day, they realize too that we're all here trying to make a buck or two. There aren't many people out there who go out of their way to be jerks to every person they interact with. It's only a matter of connecting with them, so that we (partners) can relate and humanize our patrons, while they (our guests) feel the same about us. It's not rocket science, it's just being a decent person.

After being with the company for almost 2 years, I have yet to meet a regular who comes in more than 3 times a week and is constantly in a bad mood or cranky. All they need sometimes is a "How's everything going?" or "this should warm you up." Even something as simple as "have a great night" "thanks, you too" can have a deep and profound impact on our customers. How many times do you exit an establishment and get that kind of interaction? We don't need to fawn over our guests, but a little courtesy goes a very long way.

As for lack of soy.. in the rare occasions that we do run out of something that a customer is specifically looking for, I will first try to offer an alternative, and if they don't take me up on that offer, I'll treat them to a drink for the next time they come in with a recovery certificate.

[ron lieber]

hopkins bella: you raise a good point. somehow, the baristas would need to know who's entitled to put stuff down at the aeron-chair/electric-outlet tables. maybe the outlet covers are locked and a barista needs to open them up? a pain, i know. like i said, my ideas aren't perfect.

oh, also -- yes, you'd need a database for this. but this sort of technology has been around for years now and can be bought off the shelf pretty cheaply. tracking sales isn't the problem -- it's coming up with the right hard and soft rewards/benefits -- and then training staff how to recognize elite members (and making it easy for them to do so, as you note) -- that's the true challenge.

re franchising: aren't the airport starbucks franchised? or merely licensed? is there a difference? how does host marriott and others who operate the airport starbucks's compensate the company -- and how is that different from how a franchisee compensates mcdonald's? does sbux not like the word "franchise" because it seems low class, even though that's what they're effectively doing in airports?

and again, i'd argue that merely recognizing regulars and providing legendary service to everyone on an everyday basis isn't enough. it just doesn't happen like that. or, rather, in a company/culture that's now as dispersed as starbucks is, you simply can't train *everyone* well enough to do the reward/recognition thing as well as a database can, even if many employees have a database in their brains and are super-good at being nice and helpful.

true, some big companies (usaa is one) do manage to provide legendary service without treating different customers differently, but they have pretty much everyone housed in san antonio, where they can keep an eye on them. oh, and they refund 5-15% of premiums each year -- which is, in effect, a reward for continued patronage.

[ineedsoy]

12:52 says: "As for lack of soy.. in the rare occasions that we do run out of something that a customer is specifically looking for, I will first try to offer an alternative, and if they don't take me up on that offer, I'll treat them to a drink for the next time they come in with a recovery certificate."

Thanks. I was surprised she didn't offer to make something else [even knowing I wouldn't drink it] or even apologize for the lack of soy. I'm fine without a recovery coupon and certainly didn't demand one but even some feigned sympathy would've gone a long way. Thanks for everyone's input and advice. I still love you sbux! [I'll just be loving you at a different store now :) ]

[DallasSM]

I totally agree with SBuxpartner on many points. Especially when it pertains to hiring and partner care. Too many of my peers will do bulk hiring because they really need somebody, which I understand really sucks. However, when you settle for a 3 star partner you risk contaminating the 5 star partners in your store by allowing your expectations to not be met by the 3 star partner. Existing store partners shouldn't have to pay for a bad hiring decision.

[Nerfebarista]

Brilliant as some of these ideas may be, and who am I to argue with what a customer says will bring him back to sbux, I think that, in theory, this is the most arrogant bunch of ideas to actually be spoken aloud.

Seriously?? a fast lane at starbucks?
Special seating?
The rewards thing you already get as mentioned many times on this site if you register your card and punch cards are so not gonna help anyone involved.

You seem like you reason well Mr. Lieber and that perhaps you don't come off as self centered as this topic would lead me to beleive, but these ideas are maddening to someone, like myself, that spends their whole day trying to please the masses, rich and poor, only to come home and read that some other rich person is ranting about how their service isn't better than the dude in the corner with his drip coffee. It really makes me sick that anyone could ever expect better service than the person behind them should get.

I remember regular's faces, names, drinks, cars, jobs, sexual orientation and all that crap. I treat everyone the same. Give them all the same smile AND the opportunity to get great service without having to worry about showing their faces twice a day. I used to think it was nice to pick folks out of the line as a kind of rewards for being there so often. You know, make their drink, pop open r3 and yank a few over before tending to the line wrapped around the building. I did all of that because it seemed nice, until I started looking at the looks on the faces of the other people.

IT PISSES PEOPLE OFF to be treated poorer than someone else in line.
VIP at sbux would pretty much crush us. We don't have time to deal with the selfish and we certainly wouldn't look good in the press, which would be the first place I'd go running to if such a program were ever even discussed as a valid option.

OH, I'm all for free wifi. Some people are under the impression that you need permission to ask someone to leave if they are loitering. This is not true, we have every right to escort folks out that are just wasting space to make room for our paying customers. When this wifi thing comes out, and it will, just make sure you have your no loitering signs up, so when you confront folks in your lobby, that aren't even paying for internet, your bases are covered. Tell them, that they will have to purchase something or hit the road and most will either walk right up to the counter and buy something or be so pissed off that they walk out.

Also, I'm not 100% sure on this but I think I read somewhere that sbux has an official 20-30 minute seating limit in it's stores for our use in circumstances dictating it's use. And I know there are parking time limits. Just use whatever means possible to keep folks from exploiting you.

thanks for reading (ifyoudidlol)

These are some of the most outlandish and ridiculous ideas I have ever heard. Are people living in Starbucks stores now?

[HatesLInes]

Put some people to work at using technology to reduce the queue.

Start by giving me a personalized card that identifies me and my normal order, let me swipe it as I enter the store. Then let me use a Starbucks swipe card to pay for it.

[Melody]

I think technology can create chaos, instead of the intent to shorten lines. If you swipe a personalized card that identifies your regular order, what happens if you suddenly change your mind? There should be just one line, imho.

I don't like the idea of any of the VIP type suggestions which have been proposed. Nerferbarista, has it right on: Don't treat one group of customers better than another. Even if I go to Starbucks 60 + times as month (as is likely true in my case), that doesn't make me a VIP. It probably only makes me either high on the sugar in the caramel sauce or overly caffeinated.

The only rewards programs which should be in place are those that create enthusiasm for the core product and which do not discriminate by class of consumer. (See my previous post about the 1993 rewards from Pour Your Heart Into It).

[Nerfebarista]

We do infact have a card out that can be purchased and then personalized to suit your needs, Hateslines. If you tend not to change your order, Have your card reflect your order. I have seen dozens of these since we started selling them over the Holidays and I think it's brilliant!

If, however, you are looking for preferential treatmeant, I ask one question. What other retail establishments can you name that offer that type of service and do they have anything in common with Starbucks? Similar product, similar customer base.. etc..

I do have another question for everyone in favor of VIP service. Do you like being able to go into a starbucks and getting the service you get and product you get? If the answer is yes, then you cannot possibly expect starbucks to take on such notions and not expect them to go straight into the gutter. There would be protests, lawsuits and all sorts of other things against starbucks. All of which would have valid arguements of bais, racism, discrimination and outright prejudice against people in poorer walks of life.

I'd support any actions taken to improve our customers stay in a Starbucks, but most of the items mentioned above would be fatally damaging to the company.

Thanks for reading... again

[ron]

Folks, establishing loyalty programs is all about setting expectations -- and setting the bar visibly high for folks who want to be treated differently.

What I don't get about Nerfebarista's line of reasoning is this whole "piss people off" notion. Sure it pisses people off when you treat different people differently *now.* That's because people aren't expecting it to happen. They don't know your unwritten rule that leads you to do so sometimes.

If everyone knew the score -- that you have to spend more (or exhibit some other profitable behavior) to wait less and use the special chairs -- then no one would have any reason to be angry.

Hotels do this. Airlines do it. How is Starbucks so different from these two service industries that a similar loyalty program would ruin it?

This is not a rhetorical question -- those of you who work for Sbux know better than me. Lay it on me.

Ron

Ron, many, many people have told you why this won't work. I can't imagine why you still think your "idea" is something remotely workable.

But, for the sake of saying I have, I'll explain why hotel and airline perks programs cannot operate like Starbucks and vice versa.

Hotels and airlines can deal with their customers on a one-on-one basis, generally in advance, as well. People book their flights online way before they actually board the plane; same deal for hotels. Both of these industries can anticipate a customer's need way ahead of their arrival, generally.

Starbucks cannot. What if an entire line was "elite"? Who goes first? How can you anticipate the most elite in the line and service them first? You can't. Starbucks business inherently is difficult to plan.

The only way Starbucks could accomodate the customer the same way a hotel or airline could is to over staff and over stock their stores, which is not profitable. They cannot know what the "elites" would want on any day.

Pure and simple, the only true way Starbucks could have some sort of reward program would be to the extent of Barnes & Noble's. You get a card and from that, at most, you'd get some coupons for something and maybe a discount. It'd be far too difficult to accommodate multiple lines, special seating and the such.

Also, frankly, I'd say many, many customers would qualify for an "elite" status if that benchmark was on frequency of visits and dollars spent. What if everyone in the store at any time was "elite"? At this point, you'd be an average Joe in your peer class and the perks would disappear. When that happens, you then have a group of even more pissed off people because they expect a promised perk and it's not avaliable. At this point, you've not only pissed off your one-off customers who don't qualify for an "elite" status, but also the "elites" themselves. And, if Starbucks decided to set a really high bar for an elite benchmark, people would scoff at the program, it would fail, and it would make Starbucks come off looking really bad.

It just simply won't work, Ron. I'd say drop this conversation and move on with your life. You've had your 15 minutes, and, frankly, your continuing inquiries are coming off as condescending more than anything else at this point.

[JMW]

Just a tangential point since this comes up a lot --

I really don't think Starbucks should ever offer free wi-fi. Indie shops do it because it allows them to differentiate. But they don't have the real estate presence.

Starbucks, by virtue of being _so_ common in urban areas, would practically create an open "municipal wi-fi" by opening up their networks (even a bit).

Honestly I think ubiquitous wi-fi in Starbucks locations is extremely valuable and should be priced as such. Perhaps they should relent in areas that offer actual municipal wi-fi, but those are few in the U.S.

The idea behind creating "elite" points for free wi-fi usage is intriguing. But such a system sounds pretty difficult to implement properly and, more so, frivolous from a business standpoint -- the people who pay for T-Mobile now clearly value it enough to shell out; and the people who would otherwise benefit are just coffee drinkers anyway, so why spend money to get them online?

I guess theoretically the free internet is an 'incentive' to get people to buy more drinks, but it'd be a weird one. Usually incentives are pretty one-for-one -- like in airlines, if you sit in our seats enough (miles), you get a better seat (first class). Insert your own example here.

[Nerfebarista]

"What I don't get about Nerfebarista's line of reasoning is this whole "piss people off" notion. Sure it pisses people off when you treat different people differently *now.* That's because people aren't expecting it to happen. They don't know your unwritten rule that leads you to do so sometimes."

Right now, the 'pissed off folks' are the ones running late for work and see someone else getting preferrential treatment. That makes folks mad and I agree that, that is how it is 'now'.

If we went public with the idea of intentionally treating high spenders with better service just because they are the elite. We would get boycotted plain and simple. Mcdonalds can't do it, burger king, no coffee shop would survive an outright discriminitory move like that and I can tell you why. I am one of the people that would not be considered 'elite'. I don't have cash to throw away on coffee at sbux unless I work there. And if a company decided that I don't spend as much at Starbucks as Ron Lieber does and therefore get worse treatment, I'm boycotting and calling an attorney. I'd settle out of court for a cool mil and then I'd get my friends in on it.

Starbucks is and always will be a 'word of mouth' company, no matter how much we advertise our business will always depend on what our customers tell their friends about us. And contrary to your views, the 'elites' are not the center of our business. No matter how much money you spend at starbucks, there are only a few of you per store even in the busiest locations and that means that our sales are not based solely off of what you decide to spend. They are based off of the other 900 people that walk into my store per day.

In this industry, there are no elites. Everyone is the same or they go elsewhere or ,god forbid, make their own coffee. Nothing says VIP like making it yoruself and watching opra. And I'm glad that this topic is on the web, because I don't think I'd keep my job if someone asked for this in my face.

And, I also find the presumption that you are better than me quite offensive

Maybe we should consider scheduling more partners and having more tills and bars in the stores if people really want lines to be shorter...Does anyone think Howard will give us more labour hours because that's one of the main things customers want??? ( laser focus...)

[DallasSM]

I think the main thing we can do to improve customer service is schedule more labor. By using ALS and training managers to use VTI the company can cut labor in back handed way without telling anyone. Last year a DT store earned one hour of labor for every 11 to 11.5 transactions. This year you earn one hour for every 12.5-13 transactions per hour. At my store that amounts to about 30 hours per week. If Howard really wants to make a difference, he will reverse this trend.

[Geri]

Nerfebarista, you had a good thing going there, and I was supporting you until you suggested that you could sue Starbucks. Um, I don't know how long you've been in the "real world," but you can't sue a company or person because they give a bigger spender better treatment. It's called basic economics.

Stick to making drinks and leave the law to lawyers, or just people who have a clue, and a touch of common sense.

[Tom Anderson]

Here's an idea, why not treat their black customers better? (www.tomhcanderson.com) Starbucks should reward and encourage their black customer base to grow!

[Joy]

I think that most of Lieber's ideas are absurd. In my local 'Bux, the "elite" crowd would be 9th graders drinking their third Frap of the day.

Bring back the Passport program! It brought people into the stores and rewarded them for trying a variety of products.

Why not a separate line for drip coffee?

[javagirl666]

Um, preferential treatment??? How about I remember 400 regular customers/drinks every day..they don't have to wait in line at the bar because their drink is ready as soon as its paid for??? and after being a manager for 8 years...EVERYONE thinks they spend the most $$$ in my store..its actually the ones who would NEVER think of asking for any special treatment/lines/chaires/freebies who do spend the most and are usually the ones tipping!!! Seriously, what other retail outlet would you ask these things of?

[BJ]

That's the most arrogant article I've ever read on a blog. If this guy spends so much time sitting around at Starbuck's that he feels the need to be praised for each time he buys a latte then he really needs a life (other than Starbucks). Wasting $100+ per month tells me that he probably has few ambitions in life and is probably barely making his rent (or highly doubtful, mortgage) payment each month, as its being swigged away every day while he's sitting on his a$$ checking his Facebook.