This past 2018 holiday season, Starbucks was giving away free coffee. Did you miss out?
What is most interesting is their offer. If you bought a tumbler for $40.00, you could get coffee or tea for free for 30 days.
Tumbler might normally cost anywhere between $10 to $20.
Grande-sized coffee is about $2.45. If you take advantage fully of the offer and get a coffee a day, that would cost about $73.
Doing the math, this is definitely a win for the customer.
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Now, let’s layer in behavior design
With this one promotion, Starbucks is playing with some key behavior design tools.
First, they are offering you a big discount which ups your motivation.
Secondly, since you have already prepaid for a month of coffee, you won’t think twice about ordering a cup.
Third, Starbucks is just about everywhere, so they know it will be easy for you to take advantage of the offer. When you see their signs, you will be prompted to stop in.
Short term, Starbucks may be losing on the deal. But, long term they are basically running on of those “30-day challenges.” Instead of building a weight loss habit, they are designing the behavior of making you into a more loyal and dedicated customer.
After those thirty days are up, do you think that you will stop buying coffee? Not only do I bet you would continue, but I can also bet that you will keep up with a similar frequency of buying a cup a day.
If you got this tumbler as a gift and weren’t a normal Starbucks customer, you may go from spending close to $0 to now spending about $70 a month based on that new behavior that they want from you.
Brilliant job Starbucks!