Context

1. Perfect your core products
At one time, the North American coffee experience was completely generic. Starbucks raised the bar in quality, taste and choice so that even their basic product was the best in the category. They charge more than everyone else. And they continue to prosper. Are your core products the best in the category? If not, what would it take?

2. Build on your core
Having the best coffee gave Starbucks the foundation to expand their product range. It was natural to introduce higher margin espresso, cappuccino and lattes. With those bases covered, they were able to make the next great leap – customer-driven customization. Are your core products strong enough to build on?

3. Let your customers customize your product
Starbucks orders have become the subject of parody – the venti, no-foam, non-fat, two sweeteners, caramel latte – and Starbucks laughs all the way to the bank. Customer-driven customization takes the product further out of commoditization and into ever higher profit margins. Think about your products. How could you accommodate customer-driven customization while still meeting your standards for delivery and quality?

4. Build on your experience
Starbucks lead the way in providing wireless access in their shops. Who does this appeal to? The leading edge digeratti who travel everywhere with their laptops, and other road warriors who work as they travel. Exactly the ones who will pay for premium coffees and add to the atmosphere of Starbucks being a cool place to be. How could you build on the experience customers have when they interact with you?

5. You can charge more for quality
Starbucks insists on quality as their first criteria. Service is number two, and price is third. This is what they live by. How would that work for your company?

6. Make them speak your language
It’s grande, instead of large, and venti rather than extra-large. It’s a dopio-espresso, not a double. The person behind the counter is a barista. It’s another way of differentiating Starbucks from the rest, and rejecting commoditization. Once customers speak the language, it’s all part of the experience that generates loyalty. How do you name your products? Are they generic category words, or is it a language that belongs just to you?

7. Engage your customers
Most convenience or “fast-food” style restaurants want you in and out in a hurry. The chairs are purposely uncomfortable, surfaces are hard and cold. Starbucks takes the opposite tack. They call it the “third place”. It’s not your home or your work, but a place to meet, to relax, unwind, and get a bit of work done. How do your customers interact with your facilities? Would it make sense to be more inviting?

8. A strong consistent identity
Because Starbucks stores are company-owned, they can maintain tight control of identity, colours, messaging, in fact, the whole experience. How does your identity work for you in your various locations? Would it be better if it were more consistent?

9. Your employees are valuable – say it like you mean it
Starbucks has elevated what might be seen as a transient “counter help” job into an opportunity for meaningful work. Right from their mission statement that focuses on respect for each other, to their above-average compensation packages that include health care for even part-time workers, Starbucks understands the value of keeping employees happy and motivated. That allows them to provide the highly personalized customer experience that drives the whole business. The interactions that customers have with employees form a key component of the overall brand experience. Has your company truly embraced the value of your employees?

10. Know your values and communicate them
The next time you’re putting a lid on your Starbucks coffee, look at the brochures by the service stations. You’ll find a variety of information pieces. Some are about the actual products. Others outline how Starbucks works with coffee growers, how they contribute to local communities and where they stand on the environment. Now, what about your company? Have you articulated and communicated your values to your stakeholders? Would it help differentiate you if you did?