Monday, February 10, 2020

Lessons For Radio From Starbucks For Growing Ratings

Tracy Johnson
Lessons in business and life are everywhere.  Tracy Johnson, radio talent coach and consultant believes Starbucks is a great source for lessons for radio.

Of course Starbucks is selling coffee, not listening. And they have customers, not listeners. But, Johnson writes in a blog post that the principles of cume (customers) and TSL (occasions) are exactly the same. According to Johnson...

'Programmers know the key to listening growth is to create appointment tune in occasions. Radio is a a background companion to most listeners, always there when convenient. Just as Starbucks is on every corner and grocery store.

'So, like Starbucks, radio needs to create reasons to use the product with an urgent Call to Action (CTA). And that’s what Starbucks does to recycle their “audience” and drive visits to stores.

'In marketing, brands create urgency by making products available for short periods of time. This creates an illusion of shortage. Airlines do this on websites with messages to “Hurry, only 2 tickets remain at this price”.

'But how can a brand grow when they’ve reached most of the potential audience? By increasing occasions and creating new habits for using their product.

'One tactic is a recurring and very popular promotion. Treat Receipt adds urgency by recycling the most loyal coffee drinkers (morning users) to a lower-traffic time period.

'Customers who purchase a coffee in the morning can bring the receipt after 2pm for a significant discount.

'It’s effective promotion because:
  • It targets their large cume (customer base) that already likes them.
  • The “trigger” is during Starbucks’ most popular time-mornings.
  • They recycle the audience to a less popular time (afternoons).
  • It provides value to the customer.
  • Over time, it creates new habits that continues after the promotion ends.
'That last point is the important one. Convincing customers to return regularly during the promotion conditions them to a new usage pattern.'

Read the full posting here.

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