Starbucks Sales Best Practices!

Passed by Starbucks during my trip to HSBC. Went in there to get a cup of coffee. Walked in and heard a loud… “Welcome to Starbucks” greeting from the barista, a young smiling girl eagerly standing in front of the counter awaiting my order. I asked, “what’s new?”. She pointed me to the Vanilla latte with coffee jelly. Not too new apparently but what the heck. Ordered the Tall (small) and then she asked me whether i wanted the Grande (medium) for just an additional $1? I didn’t take the offer but good up-selling attempt. Since it’s lunch time, she then asked me whether i wanted to do lunch? Since i just had my lunch i had to pass, but good cross-selling attempt. Is that all? Nope, she came back with, why not you get a cookie together with your drink? Since i am very full from lunch i also had to pass, nonetheless, 3 attempts to increase the size of transaction, she is indeed very well trained.

There are basically 3 ways to increase sales:
1 – get more customers.
2 – get the customers to buy more.
3 – get the customers to buy more often.

Since i walked into Starbucks to buy coffee, it would be a wasted attempt not to do strategy 2 & 3.

2 – get the customers to buy more.
The barista upsold me from small to medium.
The barista cross sold me lunch.
The barista cross sold me cookies.

3 – get the customers to buy more often.
The barista gave me a redeption card, buy 7th drink and get a free one. Which means it builts loyalty and i have to go back. Pretty typical strategy used by retailers. They also have an option to fill up the details to receive updates, good practice as well because collecting customer’s database and mailing them often makes them remember you and get to customers ‘top of mind’. Besides that, she also gave me the receipt and on the back of the receipt says, get 50% any beverage when you present this receipt on the same day after 3pm at Starbucks. I thought, hm… Interesting, they want me to come back after 3pm to get another drink but rewarding me for loyalty at 50% off. Wow!

How are you getting your customers to buy more and buy more often?

Unconventionally,
HANZO NG
Sales Ninja Grandmaster

© 2009 Sales Ninja Training. All Rights Reserved.

Hanzo Ng is Sales Ninja Grandmaster, lingo for Chief Trainer of Sales Ninja Training, Asia’s #1 Unconventional Sales Training. Sales Ninja Training specializes in helping small-medium, listed and global companies transform their sales people into the ultimate sales professional known as Sales Ninja. For more information on our sales, motivation and leadership trainings, visit our website.

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