Starbucks teaches me marketing
Hi Medium fam,
Yesterday, I was buying coffee at Starbucks.
When I was about to pay, the barista told you: “Madam, we have a promotion at our store; if you sign up for a membership card, you can get this cup of coffee for free.”
Do I want a free coffee?
Sure!
So, enticed by the “free” offer, I signed up for a membership card that costs $25, rather than simply buying a $6 coffee.
Of course, this isn’t just any ordinary membership card; it’s packed with benefits that let me “get the best deal,” such as “birthday treat” each year.
As I walked out of Starbucks, I suddenly realised — isn’t this the perfect example of one of the key psychological triggers I teach in Simplified Marketing?
So today, I want to share more about this powerful emotional psychological trigger that will help you to market and sell effortlessly.
Part 1: what Starbucks teaches me
Part 2: the powerful emotional psychological trigger
Part 3: how to apply
As always I’ve also prepared some resources and reflective questions at the end of this article to help you jump started.
Pls enjoy~
Part 1
The lesson Starbucks teaches me is this:
let your customers get a deal once, and then figure out how to earn their business for a lifetime.
You can use promotional tactics like “free, giveaways, discounts, and buy more, save more” to attract customers with upfront benefits and amplify profits in the backend.
It works.
Starbucks is a master at leveraging the “getting a deal” mentality to make money.
Part 2
The principle
One reason people are willing to take advantage of deals is the provision of tangible benefits.
In today’s increasingly transparent information landscape, consumers are savvy;
without genuine value, even if they make a purchase, they may feel deceived and view the merchant as a fraud, ultimately harming our brands.
One thing to note though is offering tangible benefits doesn’t necessarily mean operating at a loss.
Here’s what we can do (for example):
offer discounts on Product A to encourage the purchase of Product B for profit.
Of course, we can also adopt a strategy of breaking even now and profiting later, encouraging multiple purchases from customers to achieve profitability (like what Starbucks did to me LOL).
It’s particularly important to note that the most ingenious discounts are like bait with a hook: while providing real benefits, they also prepare for the next step in conversion and profit methods.
Simply put, what many businesses do is:
use the substantial discounts on Product A to attract customers and earn profits with Product B.
This psychological trigger is called “getting a bargain”.
People are not just buying cheap items; they are seeking the feeling of getting a bargain!
We associate cheap (low price) as cheap items.
But we feel like we had a bargain when something with a high intrinsic value is charging for less than we expected.
We often see stores with big signs like “Sales” or “Clearance sales” right?
Each time, these clearance sales often attract many customers, almost queuing up to buy.
However, are all these clearance sales really real? Not necessarily.
It just gives customers a reason to shop, it just attracts attention.
So, why do people rush to buy these clearance items?
Some might say, “Because they are cheap!”
In fact, beyond the low price, it’s more about leveraging the psychology of getting a bargain.
The psychology of getting a bargain refers to the human tendency to seek benefits and advantages for oneself.
In people’s minds, the benefits that can be saved are considered extra surprises and rewards.
This reward brings psychological satisfaction and more joy.
For example: the same piece of clothing, a bag of snacks; if I can buy them at a slightly lower price, it means the saved money can be used for something else.
Therefore, many brands, especially when launching new products, will use the psychology of getting a bargain to market and boost sales .
This allows people to gradually get to know and fall in love with the new product while feeling like they are getting a bargain.
Similarly, during holiday promotions and event sales, major brands often stimulate the psychology of getting a bargain by offering coupons, free gifts, or special rebates with purchases, using super value discounts to trigger customers’ desire to get a bargain.
The psychology of getting a bargain is about this:
People are not just buying cheap items; they are seeking the feeling of getting a bargain.
Cheapness is just one way to measure the value of a product; it’s the feeling of getting a bargain that makes people feel they have gained something extra, providing pleasure.
Part 3
Ways to apply this psychological trigger of getting a bargain
#1
Limited-Time Offers:
We can create a sense of urgency by offering discounts or promotions that are only available for a short period.
This scarcity can motivate customers to act quickly to secure the deal before it’s gone.
Ensure the time frame is reasonable and the offer is genuinely attractive to your target audience.
E.g. “For the next 48 hours only, enjoy an exclusive 20% off on our best-selling product. Don’t miss out on this limited offer!”
#2
Flash Sales or Special Events:
Organize flash sales or special events where you offer products at a reduced price.
These events can create excitement and a sense of exclusivity, making customers feel like they’re part of a unique opportunity to get a bargain.
e.g. “Join us for our Flash Sale this Friday at 10 AM sharp for a chance to grab your favorite items at up to 50% off. Be quick, these deals won’t last long!”
#3
Loyalty Programs and Repeat Purchase Incentives:
We may implement a loyalty program that rewards customers with points, discounts, or exclusive offers for repeat purchases.
This not only encourages customers to return for more but also positions your brand as one that values and rewards their patronage.
e.g. “Sign up for our loyalty program and start earning points on every purchase. Collect enough points and redeem them for discounts on future buys or exclusive member-only offers.”
Feel your heart racing?
By offering these types of deals, you’re leveraging the psychological trigger of “getting a bargain,” which can lead to increased sales and customer retention.
A powerful psychological trigger for marketing indeed!
In Simplified Marketing program, I teach a dozen of powerful psychological triggers like this one for you to use in daily marketing, which makes it hard not to grow!
To help you accelerate growth to 6 figure income, I’ve prepared 3 resources for you:
#1 first step in marketing is to know who you’re marketing to, I do include the “Simplified Marketing” program in the yearly mastermind, but here’s a list of 9 key questions to locate target customers to jump start now. You can get it here.
#2 If you don’t want bits and pieces and want to have the whole Simplified Marketing system and EVERYTHING — You can learn strategically how to Build a 6 figure business by joining the yearly mastermind (all the supports included) — give yourself 1 year’s time to create a new you and new life. It’d be the best gift for yourself in the new year!
#3 I’ve also done a series of livestreams in the new FB group, you can join here to watch
If you’ve any Qs, feel free to reach me at IG DM @simplifiedbusinesscoach
Reflection Questions for you to work on now:
- How can I effectively communicate the value of my product or service to ensure customers perceive it as a bargain, even if it’s not the lowest price?
- What strategies can I implement to create a sense of urgency or scarcity that might motivate customers to act quickly to secure a bargain?
To your success,
Connie
