The first thing that comes to mind when you hear Amazon is fast delivery and huge retail service. But when you hear Starbucks, your mind goes to their logo (which is one of the most recognized all over the world) and good coffee. What comes to mind when you think of Starbucks vs Amazon?
Honestly, these two brands represent every entrepreneur’s dream come true, especially if we consider the fact that both started from the ground and climbed the latter of success in style. But how did they do it?
Starbucks opened their first shop in 1971, reached about 55 stores by the end of 1989, and now they are a global phenomenon with over 22,650 stores around the world, with $21.3 billion in annual earnings. And the cool thing is that they are on an upward trend of change and growth.
Bezos culture: The Amazon Culture: How to Competely Change a Business Like Jeff Bezos
Amazon also started slow, in a garage (a bit of a cliché, but this is how it happened), but the difference between them and other garage businesses was a focus on customer and vision. According to their reports, for Amazon, it was important to become the go-to online store for everything. And, as you can see, today they are!
The secret behind their stories is customer experience. They come from different niches and have different business approaches, but both brands are dead-set on making their customers happy! And this is something all entrepreneurs should learn how to do.
Focus on customer insight
Most companies focus their attention on getting as many new customers as possible, but this activity takes away from the care they should offer to their existing customers. And this is where they lose big money because according to recent studies, about 80% of profits are bound to come from the 20% of loyal customers.
If we take a look at the brands in question, you’ll notice they are strong on customer retention. There are millions of people who order from Amazon every day even though they may find better prices elsewhere. Also, millions of people buy coffee from Starbucks on a daily basis, even though they don’t have the best coffee or prices. So what drives them?
The answer is quite simple: both brands have incentives that promote loyalty. Amazon has Amazon Prime, and Starbucks has Mobile Order and Pay – both features designed to retain customers by making their lives easier. But the important aspect of these features is that they are based on data collected on behavior and customer preferences; put in short, insight.
Both brands understood the importance of listening to customers and implemented all sorts of methods to learn about them. So, if you’re looking to improve your conversion rates, tools such as Typeform and its alternatives, analytics reports, and others will be of extreme use in getting insight from your target public.
Brand consistency regardless of location
Brand consistency is important as it creates a specific experience that becomes second nature for the customer.
For instance, Starbucks follows the same format and design in brick and mortar stores regardless of the store’s location on the globe. Furthermore, you will receive the same type of service, and the basic products are the same. Speaking of service, part of the Starbucks promise is that you will get exactly what you order, regardless of how complicated the ingredients and mode of combination. This is why baristas go through extensive training, so you will indeed receive what you order even though you’re in Miami or Prague.
According to the Building Consumer Brand infatuation report, about 64% of the questioned consumers appreciate the consistency of their experience with a brand. And this is where Amazon excels! They had a trust-based relation with their clients and managed to maintain the same message throughout the entire brand starting with ordering online, packaging, and ending with their brick and mortar store. Everything is designed to be simple, effective, and consistent!
Starbucks vs Amazon … online integration
Online shopping is a daily occurrence, so there’s no excuse to not make the connection between your app or online store and your brick and mortar establishments. While Amazon is primarily an online retailer that only recently made the step towards physical stores, Starbucks is a physical presence. And they did a bang-up job in integrating the online and offline!
A good example to support this affirmation is their mobile app – customers have the option to use the app in the store, by scanning their phones every time they buy a beverage. If they do this, they earn points that can be transformed into free drinks or in coupons or gifts sent to friends that also use the app. Of course, they can also receive customized offers, which compel users to keep in touch with the brand throughout the day.
Amazon took the other path: they started in the online and only recently decided to open brick and mortar stores. But they took it several steps further as their stores (Amazon Go locations) use technology instead of human cashiers. Customers get inside, take the products they need, and leave. They will receive a receipt at a later date, and their account will be automatically charged. This way, you don’t waste precious time standing in line, and you don’t have to deal with annoying staff members.
Now, it’s true that both brands have huge budgets at their disposal, but this doesn’t mean small companies must follow in their footsteps. The integration with the online doesn’t have to be as impressive, but it’s important to have it to keep modern costumers loyal to your brand.
High transparency
To establish a trust-based relationship with your customers, you must be transparent with your processes. Take an example from Amazon; they went above and beyond to make sure a client understands what happens when they click the Buy Now button. This way the customer will know about delivery date and time, how and when they can return the product, and any other information they might need.
The same goes for Starbucks; only their process is implemented directly in the store. If you have ever stepped in a Starbucks, you’re probably familiar with the process where you place the order, have the barista repeat the order back to make sure all the information is correct, make the payment, and then move along to the pick-up spot where you will receive your beverage. You can see how your coffee is being made and the process runs smoothly because it is natural and transparent.
With both brands, the language used to communicate with people is clear, concise and doesn’t leave room for ambiguities. This is why so many people trust their services and return over and over again.
Starbucks vs Amazon … fast delivery
In a recent study commissioned by UPS, it was revealed that most people are happy with how online shopping goes. However, when asked to define the elements that made them happy, 83% of respondents pointed towards the ease of checkout, 82% are happier when there’s a diversity of brands and products from which to choose, and 79% liked the fact that they could track their delivery.
Also, it’s important for the delivery to be fast, on time, and for the store to offer the possibility of return. Finally, the cost of delivery must be low or even free, and it must be clearly stated from the beginning (about 40% of respondents abandoned a cart because delivery costs were listed too late in the process).
A quick look at Amazon’s delivery method will show you they done everything right. Delivery is fast, and on time, the cost is usually small, and you have the chance to get free delivery. Also, if you purchase on a whim, you can always return the product.
The same goes for Starbucks, even though they don’t make online delivers. Still, their process in the store is designed to make things faster and lines shorter.
Provide options for different customers
Starbucks vs Amazon are completely different companies: one is a retail giant that sells everything from toilet paper to mattresses, while the other sells coffee. However, they both managed to provide a rich offer for different types of customers, whether it’s in a plethora of brands and products or a mixture of sensations and tastes.
But it’s not just about the products they offer; it’s also about the processes that lead to the purchase decision.
For instance, a good example is Starbuck’s Mobile Order and Pay feature. Thanks to this option, people in a hurry, can place an order and pay for it before reaching the store. Let’s say you’re at the office one day and you’re dying for a tall latte, but there’s no time to go to the nearest Starbucks, stand in line, wait for the coffee to be made, and then drink it! Yes, it may only take several minutes, but it’s one of those days when you don’t have time to spare.
By using this payment feature, all you have to do is go pick up the latte and enjoy it. No standing in line, no wasted time!
The bottom line
As you can see, big brands focus most of their efforts on understanding how customers think. Once they do, they create experiences that make your life better and go to such an extent that you can’t perceive life without their service. After all, when you think about online retail, you think Amazon, and when you think about getting a cup of coffee, your mind immediately goes to Starbucks. This is some powerful marketing!
Stewart is the marketing & outreach manager at Fieldboom.com. Creates beautiful, smart forms, quizzes & surveys in minutes.
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Mike Schoultz is a digital marketing and customer service expert. With 48 years of business experience, he consults on and writes about topics to help improve the performance of small business. Find him on G+, Facebook, Twitter, Digital Spark Marketing, and LinkedIn.