It has already not been an easy year for American businesses. But it isn’t just the tariffs and other political issues. Many companies were struggling before we rang in the new year. And they’re trying to claw their way back, despite the headwinds of the economy.
Radio companies, in particular, have been struggling whether it’s been Trump or Biden in the White House. And Starbucks, formerly one of Wall Street’s high flyers, has found itself struggling quarter after quarter. I’ve written about their attempts to regain their footing as a new CEO, Brian Niccol, came over from Chipotle last September. Not dissimilar from many radio company CEOs, Niccol is looking for any opportunity to positively differentiate his brand.
Interestingly, his strategy hasn’t had anything to do with better tasting coffee or lowering prices. And in these precarious economic times, inclement weather and tariffs limit what he can do about his coffee. Instead, he’s trying to win back customers largely on vibe – creating a more comfortable environment using soft chairs, ceramic mugs rather than cardboard cups, and a more liberalized free refill policy.
Starbucks has also staffed up, with the premise being more baristas will lower the wait times to prepare increasingly complicated drinks. Apparently, they chopped an average of two minutes off the time it takes to wait for a Starbucks order as a result. Anecdotally, I’ve noticed fewer fuming customers waiting for their beverages. Last year, it got so bad some customers stormed out of Starbucks cafes – without their orders.
But the main improvement more people are buzzing about are the personalized messages baristas are being encouraged to write or draw on cups. As you can imagine, some have allowed their creative spirits to take over and are including long, even complex messages or “artwork.”
But most simply take the opportunity to pen something meant to be personal and fun. While not all customers care about these personalized missives, others seem to appreciate the time, effort, and creativity:
Unlike the other policy changes CEO Niccol has implemented at his Starbucks stores, this one’s not scalable. These cup messages requires a level of commitment and buy-in on the parts of already frazzled baristas hustling to keep up with the frenetic pace of a Starbucks. They cannot be stamped out or printed on stickers. They are personalized, written one order at a time.
But Niccols knows that as the ambassadors of the coffee chain, the baristas are on the front lines – the point of contact with customers whether they walk in the cafes to hang out, pick up a mobile order, or wait it out in the drive-thru.
Can a simple gesture actually lead to a turnaround in Starbucks’ fortunes? The boss thinks so, but the financials are stubbornly not reflecting much an improvement. For the most recent quarter, Starbucks recorded same store sales dropped 1% YOY. While revenues increased 2.3%, net earnings fell 50%. And those numbers sent Starbucks stock down precipitously.
Interestingly, the company attributes these sluggish numbers to the cost of hiring all those baristas. Meantime, Starbucks had announced plans to cut 1,100 corporate employees, making for an interesting contrast.
Niccol told the Wall Street Journal these handwritten communiques are printing with clientele:
“Our customers are surprised at how meaningful a little smiley face is, or ‘Have a good day.’”
It’s the one Starbucks improvement getting noticed – by the media, in the social space, and by customers. That, in and of itself, may be a victory for the embattled coffee chain.
Retail Dive says these types of tactics are part of a larger trend designed to make every shopping experience memorable. In a recent story on the topic of how brands differentiate themselves, they note “The key to standing out is not just in what you sell, but how you make people feel, whether they are browsing your website or walking through your store doors.”
Or turning on your radio station.
In the same way media choices have grown exponentially, the Retail Dive article points out the importance of an “unexpected gesture” or personalized encounter that makes the experience of shopping – or listening to a radio station more special and less routine.
And so the analogy – baristas and DJs. The data shows they’re busier than ever, wearing more hats on the job. And yet, analysts point to the kind of policies Starbucks’ CEO Niccol has implemented – a high-touch moment in an impersonal retail environment.
On the radio end, I’ve seen similar efforts work, but admittedly they require time, commitment, and buy-in across the entire airstaff (or what’s left of it).
It could take the form of replying to every listener on the station’s social page. If you think that’s not the same level of personalization as writing “ENJOY” on a cup with a Sharpie, think again. As a core listener explained to me a number of years ago in a focus group, acknowledgment by an air personality on Facebook or X is analogous to a “digital autograph.” And like face to face encounters, listeners remember these simple online comments.
It’s also a simple task to sort the email (or newsletter or text) database by birthday. A quick phone call from a host on that special day – even if it ends up in voicemail – is an unforgettable moment for most station fans.
Listeners of NPR’s “Wait Wait, Don’t Tell Me” will remember the “prize” if a listener won a quiz was winning a personalized voicemail greeting from the late celebrity news anchor, Carl Kassel. While the cast often joked about it, this personalized gesture by NPR’s jovial newsman was a coveted possession.
And then there are those moments when a listener is tasked with stopping by the station to pick up a prize. This pedestrian chore can be handled by a frazzled, ambivalent receptionist going through the motions. Or it could fall to an available personality (best case) or someone from the promotions department (yes, even an intern) to greet the listener and give him or her the 10-minute station tour.
If you subscribe to the notion that every encounter with your station should be experiential in some way, you’re on the right track to setting your brand apart from the pack.
What personalized encounters do you employ – or did you find successful from your radio past?
These “close encounters” with radio listeners – most of whom are posting on social and some who might even be carrying around a device operating on the “3 Minute Rule” are special and something they cannot get from Spotify, SiriusXM, or Joe Rogan.
Starbucks is banking on these personalized touches to facilitate their comeback.
Maybe radio broadcasters should steal a page from their “barista playbook.”
Originally published by Jacobs Media
