Customer Education, is that right?

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Customer Education, is that right?

Posted by Peter Tam on May 6, 2008 at 11:12am

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From time to time, we heard about the topics of "customer education".

Now, let me say something about it.

Are we able to educate the customers? To know this, I would compare coffee with hamburgers. That is the symble of success of Mc Donald (hope the spelling is correct). Is it good? I do not know. But for me, it is not good, simply because I had the better one, much better. But finally, it was replaced by Mac (may I call it like this? Sorry, apple).

We have got another one, Subway. It is better. Maybe not much better, but better; maybe also safer. Can it be better than Mac in business? Not yet, at least not now.

In Beijing, both of them have a lot clients, and number of chops of Subway is much less. There are full of Chinese clients in Subway, as in Mac. While in Guangzhou, local people enojoy Mac's hamburgers, but not Subway, where you can see almost only foreign clients.

Is that for the reason of culture? Or convenience, or pricing? I do not know. Feel it. I do not believe that we can understand it, but we can feel it.

For good coffee, how to educate clients? Your coffee, your really good coffee. Apart from good coffee, I do not think you can have any way to do it. Serve your good coffee, and let the clients to compare by themselves.

If the clients do not have choice, that is not many cafes can seve good coffee, the situation will be the same as it is now in Beijing and China, people can only go to *$s.

When I was in HK, I did not like their food, so I have to find somehting else. Considering the price, food and convenient location, I chosed Mac. Of course, I won't be there quite often, but only very few in that period of time.

Hope we all have platform to play our good coffee, all the time.

Comment by Andrew Hetzel on May 8, 2008 at 4:51pm: McDonald's using a strategy of consumer behavioral patterning in order to educate customers. We often making the mistake in the coffee business of telling consumers why our coffee is so great, rather than showing rather than creating a desirable pattern for them to emulate.

For example, did you ever wonder why we, as Americans, always order french fries and a cola with our hamburger? Why not a hamburger and soup, or hamburger and salad, or hamburger and rice? The answer is: that's how McDonald's want us to buy in order to maximize profitability. The combination of the three products (burger, fries, cola) is shown in every advertisement distributed by the company and on every menu board. Over years, the image has been so deeply engrained in our minds that it feels wrong to not get that combination of products. Try it...

We need to apply the same psychology to our retail coffee businesses.

Comment by Peter Tam on May 8, 2008 at 7:59pm: It is true. This is a kind of "customer education", or said promotion. But, for good coffee, or qualified coffee, it is not easy to do it, I think. How?

How to do better than *$s, that is our question.

Comment by Andrew Hetzel on May 8, 2008 at 9:07pm: Show the people that your customers want to be, doing the things that you want them to do.

Starbucks has diluted themselves and created a market for new upscale brands. What premium consumer wants to be associated with the same brand that you can get in warehouse stores, on airplanes and in the minibar of a budget hotel?

Comment by Andrew Hetzel on May 8, 2008 at 9:11pm: For example...

Comment by Peter Tam on May 9, 2008 at 9:43am: Yes, again, you are telling the right words. Thank you for keeping me in the right direction. I believe that you are a good marketing and promotion guy. Hope we can cooperate, one day. :)

At least, I hope that our business can be much extended. Your advise are quite good and intelligent.

Comment by Andrew Hetzel on May 9, 2008 at 11:38am: Thank you for your very kind words! Much appreciated.

Comment by Peter Tam on May 9, 2008 at 2:05pm: Yes, indeed.

Comment by Bel Townsend on May 12, 2008 at 2:53am: I think there is a need to "educate" customers as a result of Starbucks' success actually. The chain is so huge that in most cases, it has become synonymous with good coffee. You think "I want coffee -I'll go to Starbucks" as one thought, the same with "I want a burger, I'll go to MacDonalds." Because those brands are so ubiquitous, the average customer may not be aware that there are other types - *better coffees* - out there. Also, Starbucks in particular does not serve what I'd call 'gourmet' coffees - it's products are basically "hot milk with a coffee theme". They've made an empire out of selling sweet milky coffees to people who may not actually like coffee. In terms of education, customers may have to be 'taught' that coffee isn't all frothy milk and sweeteners, and that there are alternatives to starbucks out there.

Personally,I think what starbucks lacks is passion for coffee - it is so automated, the baristas are usually bored out of their minds and do not really care about what they are doing. (I've worked for a big coffee-shop chain before and half the staff there didn't actually drink coffee at all). They don't necessarily understand coffee as a product. You could potentially do better that Starbucks by having well trained, passionate, and knowledgeable baristas who understand and enjoy what they are doing and are willing to share that knowledge and passion with the customers. Market it to a different audience - that is, coffee connoisseurs. (If you can find any!)

Comment by Peter Tam on May 12, 2008 at 12:56pm: The huge chain of *$s is not followable (I made it), it came from the timing.

Today, I had a talk about this object, and I believe that the main reason for people go there is just nothing better, or at least so few as to find.

I suppose that "passion" is not enough. If no way to do it, one can do nothing even if they want. The main problem for now is how to really raise the quality of espresso drinks, I think.

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