At The Immersive Lab, we believe that if you listen to your customers, the revenue will follow. Understanding the needs and preferences of your customers is the key to unlocking the true potential of your business. This case study of the Starbucks’ “You are here” mugs help to exemplify the power of customer-centricity and its hidden retail potential.

Customers as Advisors

Your customers are more than just buyers; they are your most valuable advisors. Their insights can provide valuable guidance on refining your offerings and staying ahead of the competition.

By actively listening to customer feedback, businesses can make informed decisions that align with customer desires and market demands.

The Power of Customer-Centricity

As a firm believer in customer-centricity, I’ve witnessed firsthand how businesses can thrive when they actively listen to their customers and adapt their strategies accordingly.

One of my core skillsets is identifying and cultivating hidden revenue streams within a business. By closely analyzing customer feedback, behaviour, and market trends, I can pinpoint untapped opportunities that often go unnoticed.

Finding Hidden Revenue Streams

Let’s take a look at the Starbucks ‘You are Here’ mug collectable program.

These geographically-specific mugs are a product line that are designed for collectors, with new series and cities being added constantly. The mugs are only available in-store, which adds to the complexity of collectors worldwide – we can’t go to every single city, state and country to build out the collection. And even if you do, there’s no guarantee that they’ll have their mugs in stock.

Which brings us to looking for the hidden revenue stream.

Imagine the revenue possible if Starbucks created a single online marketplace where customers could buy mugs from all the places they’ve visited and have them shipped directly to their homes. This is something that collectors have been asking for, especially as supply chain challenges have resulted in low or missing stock. With as global a company as Starbucks, an online “You are Here” store simply makes sense.

What would this simple adjustment result in?

• A sales boost: if more people were able to grab the mugs that they were missing or to complete a collection at all hours of the day from anywhere in the world, it’s undeniable that Starbucks would see a boost in sales. Imagine finishing a vacation and each of the locations you visited had sold out of their local “You are Here” mug. Instead of going home empty-handed, a quick trip online might even result in the mug being delivered to your house before you make it home. You get your mug and Starbucks still gets the sale.
• Improved customer satisfaction: consider the above scenario – not only did you get the mug that otherwise you wouldn’t be able to find, but since you don’t have to lug it around in your carry-on you can keep shopping around for more mementos.

Maximizing Revenue Potential

We’d encourage Starbucks to give its loyal customer base an opportunity to buy mugs online, as carry-on luggage space is getting more valuable and having breakables in the overhead compartment can lead to a smashingly frustrating trip.

If you’re looking to maximize your business’s revenue potential and cultivate long-term success, look to your customers – they’ll show you the way. Their feedback can lead to innovative ideas and strategies that drive growth and profitability.

By prioritizing customer-centric strategies, you can ensure your business remains competitive and poised for growth in an ever-evolving market.

Stay tuned for more insights and strategies on how to create immersive and profitable retail experiences. Remember, the key to success lies in listening to your customers. They are the compass that can guide your business towards a prosperous future.