starbucksmarketingweb lezione del professor aiello

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What is Starbucks missing from its marketing strategy?

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presentazione usata dal professor Aiello nella sua lezione del 17 maggio 2014 al corso in Social Media Strategies

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Page 1: Starbucksmarketingweb lezione del professor Aiello

What is Starbucksmissing from its

marketing strategy?

Page 2: Starbucksmarketingweb lezione del professor Aiello

A thought experiment from

Page 3: Starbucksmarketingweb lezione del professor Aiello

Starbucks is an internationally

respected brand

Page 4: Starbucksmarketingweb lezione del professor Aiello

... but it could do a whole lot more

to dominatethe online space

Page 5: Starbucksmarketingweb lezione del professor Aiello

We are going to cover:

1

2

3

Three ways in which Starbucks’ online marketing can be improved

The way forwards

How to pitch this idea to CEO, Howard Schultz

Page 6: Starbucksmarketingweb lezione del professor Aiello

Three areasfor improvement

Page 7: Starbucksmarketingweb lezione del professor Aiello

Earning Attention

1

Starbucks has millions of customers

Page 8: Starbucksmarketingweb lezione del professor Aiello

… despite it being harder than ever to

“buy attention”

When interests and attention are spread thinly

Page 9: Starbucksmarketingweb lezione del professor Aiello

Starbucks followers are an asset

It’s got huge numbers of fans

Page 10: Starbucksmarketingweb lezione del professor Aiello

Starbucks doesn’t have to pay to “re-acquire”

existing customers

Page 11: Starbucksmarketingweb lezione del professor Aiello

Real permission works like this: if you stop showing up,

people complain, they ask where you went.

http://sethgodin.typepad.com/seths_blog/2008/01/permission-mark.html

SETH GODIN

Page 12: Starbucksmarketingweb lezione del professor Aiello

People wouldmiss Starbucks ifit wasn’t around

Page 13: Starbucksmarketingweb lezione del professor Aiello

How Starbuckshas earnt attention

Buildaudience

Earnpermission

Earnattention

… and how other brands should too

Page 14: Starbucksmarketingweb lezione del professor Aiello

Starbucks has a massive offline audience

visiting its stores…

Page 15: Starbucksmarketingweb lezione del professor Aiello

daily visitorsmillion9

to its stores

Starbucks has around

Page 16: Starbucksmarketingweb lezione del professor Aiello

If every Starbucks customer was

online, it would be a similar size to…

Page 17: Starbucksmarketingweb lezione del professor Aiello
Page 18: Starbucksmarketingweb lezione del professor Aiello

or

Page 19: Starbucksmarketingweb lezione del professor Aiello

+

+

or

Page 20: Starbucksmarketingweb lezione del professor Aiello

34 million people pay attention to Starbucks

on FacebookOn just the Starbucks US page alone

Page 21: Starbucksmarketingweb lezione del professor Aiello

And yet…

Page 22: Starbucksmarketingweb lezione del professor Aiello

Starbucks is dependent on

other businesses’ platforms

… its attention strategy is built on “sandy land”

Page 23: Starbucksmarketingweb lezione del professor Aiello

Is it a smart long-term strategy to rely

on another platform if there is an alternative?

Page 24: Starbucksmarketingweb lezione del professor Aiello

Loyal following

2

Starbucks is great at forming habits among its customers

Page 25: Starbucksmarketingweb lezione del professor Aiello

Starbucks provides consistently great

experiences

Starbucks provides consistently great

experiences

Page 26: Starbucksmarketingweb lezione del professor Aiello

Similar to how cinemas sell popcorn

Page 27: Starbucksmarketingweb lezione del professor Aiello

Cinemas sell popcorn

through...

Qualityscreens

Friendlystaff

Comfyseats

Popcornsmell

Page 28: Starbucksmarketingweb lezione del professor Aiello

Coffeehouses sell coffee through...

Relaxingmusic

Sofas &armchairs

Nicedécor

Coffeesmell

Page 29: Starbucksmarketingweb lezione del professor Aiello

There are a lot of opportunities around selling coffee

Cinema = occasional treatCoffee = daily treat

Page 30: Starbucksmarketingweb lezione del professor Aiello

Starbucks creates consistently great

experiences online tooby curating content

for customers in coffeehouses

Page 31: Starbucksmarketingweb lezione del professor Aiello

The quality of content is

incredible, and free!

Page 32: Starbucksmarketingweb lezione del professor Aiello

And yet…

Page 33: Starbucksmarketingweb lezione del professor Aiello

The content isn’t personalized…

No one reads The New York Times cover to cover

Page 34: Starbucksmarketingweb lezione del professor Aiello

Which is surprising because Starbucks

does personalization so well in its stores

Page 35: Starbucksmarketingweb lezione del professor Aiello

Starbucks gives you a rare opportunity to

define yourself

Page 36: Starbucksmarketingweb lezione del professor Aiello

Personalizedcontent...

... is the way forwards(like personalized coffee)

Page 37: Starbucksmarketingweb lezione del professor Aiello

Identifying with individuals

3

Customers’ identity, location and credit card detailsall in one place

Page 38: Starbucksmarketingweb lezione del professor Aiello

There’s no easier way to buy a

coffee than with a Starbucks Card

Page 39: Starbucksmarketingweb lezione del professor Aiello

And yet…

Page 40: Starbucksmarketingweb lezione del professor Aiello

Starbucks Card and Rewards can become more than

“points and plastic”Identity + location + credit card details is a powerful mix...

Page 41: Starbucksmarketingweb lezione del professor Aiello

Starbucks knows:

(just imagine what it could do)

Who its best customers are

Where its best customers are

Its best customers’ credit card details

Page 42: Starbucksmarketingweb lezione del professor Aiello

What Starbucks is missing is...

Page 43: Starbucksmarketingweb lezione del professor Aiello

Leverage.

Page 44: Starbucksmarketingweb lezione del professor Aiello

Social mediaBuilding an audience to earn attention

StarbucksDigital NetworkConsistently great experiences

Starbucks CardIdentity + location + credit card

Page 45: Starbucksmarketingweb lezione del professor Aiello

What happens ifyou combine them?

Page 46: Starbucksmarketingweb lezione del professor Aiello

How Starbucks could leverage its assets to own the

third space online...

Page 47: Starbucksmarketingweb lezione del professor Aiello

In an increasingly fractured society, our stores offer a quiet moment to gather your thoughts and center yourself.

Starbucks people smile at you, serve you quickly, don’t harass you.

A visit to Starbucks can be a small escape during a day when so many other things are beating you down.

From Pour Your Heart Into It by Starbucks’ CEO Howard Schultz

Howard Schultz

Page 48: Starbucksmarketingweb lezione del professor Aiello

(broadly speaking...)

There are two“modes” in life

work play

Page 49: Starbucksmarketingweb lezione del professor Aiello

Online, this roughly translates into…

work

email

play

socialnetworks

Page 50: Starbucksmarketingweb lezione del professor Aiello

Then, there’s the“third space”

Somewhere personal between work and home

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Me time.

Page 52: Starbucksmarketingweb lezione del professor Aiello

Me time.If other people are there, okay...

but that’s not why you go.

Page 53: Starbucksmarketingweb lezione del professor Aiello

StarbucksPlaces like

Page 54: Starbucksmarketingweb lezione del professor Aiello

Where is theThird Space online?

Where is “me time”?

Page 55: Starbucksmarketingweb lezione del professor Aiello
Page 56: Starbucksmarketingweb lezione del professor Aiello

Not here.

Starbucks can do better than this...

Page 57: Starbucksmarketingweb lezione del professor Aiello

It’s different, like our coffee

Page 58: Starbucksmarketingweb lezione del professor Aiello

What could Starbucks’ Third Space look like?

“Break time” from your inbox. Space from social networks.

Page 59: Starbucksmarketingweb lezione del professor Aiello

Own platform

Personalized content

Customer identity

Not dependent on Facebook

Content picked for each individual’s tastes

Based on who they are, where they are and who they’re connected to

1

2

3

Page 60: Starbucksmarketingweb lezione del professor Aiello

Three axes of content...

Personalize customers’ experiences

Page 61: Starbucksmarketingweb lezione del professor Aiello

1

Length of Media

Headline Summary Commentary Long Form

EspressoTall

GrandeVenti

Page 62: Starbucksmarketingweb lezione del professor Aiello

2

Personalization

Different flavours of content for different customers

Page 63: Starbucksmarketingweb lezione del professor Aiello

3

Amount ofStarbucks input

As published With comments Full commentary Editorial Feature

Page 64: Starbucksmarketingweb lezione del professor Aiello

Curate content for Starbucks Card members

Move the loyalty program beyond “points and plastic”

Page 65: Starbucksmarketingweb lezione del professor Aiello

Leverage Starbucks’ “Third Space”as a platform

Use Starbucks Card profiles elsewhere on the web.

Sign in with Starbucks

Page 66: Starbucksmarketingweb lezione del professor Aiello

User identity

User location

Prepaid line of credit(ideal for online micropayments)

Sign in with StarbucksConnect

Who would The New York Times prefer to partner with?

Yes

If user allows it

No

Yes

Always

Always

Page 67: Starbucksmarketingweb lezione del professor Aiello

Buying a coffee at Starbucks: the next

social check-in?

Share to Facebook via Facebook Open Graph and Starbucks mobile apps (keep a presence on other platforms whilst building own).

Page 68: Starbucksmarketingweb lezione del professor Aiello

Better still, make it social...

Joe Smith

Joe shared a Frappucino – with Sarah at Starbucks.

about a minute ago

102 Pike Street, Seattle, WA

Let customers share their presence in coffeehouses

Page 69: Starbucksmarketingweb lezione del professor Aiello

Why“Starbucks Card 2.0”

is powerful

It knows who you are, your interests

and what you care about

It knows where you’ve last

bought a coffee

You’vealready paid

+ +Identity Location Credit Card

Page 70: Starbucksmarketingweb lezione del professor Aiello

Starbucks then becomes a viable,

potent competitor to...

... and coffee shops, of course

Page 71: Starbucksmarketingweb lezione del professor Aiello

Should Starbucksbuild a platform

... or buy a platform? Partner or acquire with people who are “nearly there”

Page 72: Starbucksmarketingweb lezione del professor Aiello

Unlike Starbucks, publishers struggle

with the “third space”Editors make decisions, not readers

Page 73: Starbucksmarketingweb lezione del professor Aiello

No one reads The New York Times cover to cover

Publishers can’t offer a personalized

experience

Page 74: Starbucksmarketingweb lezione del professor Aiello

Sending eyeballs away = sending revenue away

Publishers are afraid of curation. It contradicts their

business model.

Page 75: Starbucksmarketingweb lezione del professor Aiello

...but this isn’t Starbucks’

business model

Starbucks is in media, not in the media business

Page 76: Starbucksmarketingweb lezione del professor Aiello

The kinds of platforms Starbucks should acquire

Internet success+

No huge business model=

Awesome target

Page 77: Starbucksmarketingweb lezione del professor Aiello

Partners and acquisition targets

Curators

Creators

Media Companies

Flipboard | NextDraft

Medium | Svtble | Quora

Advance Publications Inc.

Page 78: Starbucksmarketingweb lezione del professor Aiello

A Seattle entrepreneur who

understands media

Page 79: Starbucksmarketingweb lezione del professor Aiello

In summary…

TheThirdSpace

Social Media

Starbucks Card

Audience and attention

Identity + Location + Credit Card

StarbucksDigital Network

Online experience

Page 80: Starbucksmarketingweb lezione del professor Aiello

How to pitch this toCEO, Howard Schultz

Page 81: Starbucksmarketingweb lezione del professor Aiello

Explain you can’t buy attention

forever

1

Attention is fragmented and fragmenting

Page 82: Starbucksmarketingweb lezione del professor Aiello

Starbucks can’t depend on other

party platforms like Facebook in the

long term

2

Own your own audience

Page 83: Starbucksmarketingweb lezione del professor Aiello

Starbucks is perfectly placed to dominate

online media

3

Media companies desperately need partnerslike Starbucks to survive

Page 84: Starbucksmarketingweb lezione del professor Aiello

It’s not that hard for Starbucks to assemble

this platform

4

Starbucks already has the partnerships, the processes, the skilled team, the marketing budgets,

Starbucks Card, SDN, huge social followings...

And there are plenty of people to buy or partner with.

Page 85: Starbucksmarketingweb lezione del professor Aiello

Create an ongoing source of signups for

Starbucks Card

5

More signups more engaged customers more direct sales

Page 86: Starbucksmarketingweb lezione del professor Aiello

What’s the smallest

first step for Starbucks?

A to Z starts with A to B.

Page 87: Starbucksmarketingweb lezione del professor Aiello
Page 88: Starbucksmarketingweb lezione del professor Aiello

Test the assumption that Starbucks customers will

consume personalized content with an email newsletter

Validated Ideas > Untested Ideas

Page 89: Starbucksmarketingweb lezione del professor Aiello

Pay for one editor to curate content for a

specific subject

Arm them with tools such as Spundge and Mention.net

Page 90: Starbucksmarketingweb lezione del professor Aiello

Pull up subscribers through social and in-store channels

Page 91: Starbucksmarketingweb lezione del professor Aiello

Email existing customers and Starbucks Card

members to drive subscriptions

Page 92: Starbucksmarketingweb lezione del professor Aiello

Write and send out custom email newsletters for

different interest groups

Page 93: Starbucksmarketingweb lezione del professor Aiello

Understand why existing newsletters

do incredibly well

http://www.brainpickings.org/index.php/2011/06/21/best-daily-email-newsletters/

Page 94: Starbucksmarketingweb lezione del professor Aiello

Compare the level of engagement in the

newsletters to existing social channels

Page 95: Starbucksmarketingweb lezione del professor Aiello

… then, if there is a true market fit, build

or buy a platform to create the Third

Space Online

Page 96: Starbucksmarketingweb lezione del professor Aiello

Starbucks has aced individual channels...Social Media

Starbucks Card

Audience and attention

Identity + Location + Credit Card

StarbucksDigital Network

Online experience

Page 97: Starbucksmarketingweb lezione del professor Aiello

...now it’s time to combine and conquer

Page 98: Starbucksmarketingweb lezione del professor Aiello

brought to you by

distilled.net

Page 99: Starbucksmarketingweb lezione del professor Aiello

Sources

Slide 1, 60 & 62 Coffee designed by Sam Ahmed from The Noun Project Slide 2 ImageSlide 11 ImageSlide 13 ImageSlide 21 ImageSlide 24 ImageSlide 25 ImageSlide 26 Friendly Staff ImageSlide 26 Popcorn SmellSlide 26 Comfy SeatsSlide 26 Quality ScreensSlide 27 Coffee SmellSlide 27 Nice Décor Slide 27 & 49 Relaxing MusicSlide 27 Sofas & ArmchairsSlide 28 ImageSlide 34 ImageSlide 46 ImageSlide 50 & 51 ImageSlide 52 ImageSlide 56 ImageSlide 62 Coffee Bean designed by Pavel Nikandrov from The Noun ProjectSlide 63 ImageSlide 73 ImageSlide 74 ImageSlide 77 Image