Starbucks – A Missed Revenue Opportunity with Clover Brewed Coffee

Starbucks Clover – We hardly knew you... now you’re gone!

What is the greatest coffee secret at Starbucks you've never had?  Simple answer - a cup of coffee from their Clover machine.  

I will get to the sales and marketing point of this article in moment.  But first let’s talk about a subject most of us love…

Coffee!  

If you have never had a Clover you are missing out.  It makes a single cup of coffee at a time, the coffee is ground in the moment (you choose what type of coffee, my favorite is Sumatra).  It’s kind of like an upside-down French press machine.   

But recently Starbucks decided to do away with its Clover machines (and its Reserve Stores in general).  And this week despite many pleas from myself and other customers, the Clover machine was removed from my local store.  

SO, WHAT DOES THIS HAVE TO DO WITH MARKETING?

Simple.  If you are a reader of mine, you know I will always provide tips you can use to grow your business.  

Key Sales, Marketing and Customer Experience Takeaways Starbucks Missed (plus a great sales and upsell technique).

1.     If you are a Starbucks drinker, have you ever heard of a Clover, or a Reserve store (much less been in one)?  No.  Well my first rule of breaking something new with your brand is promote (and keep promoting it until you have it working).  I’ll give you a promotion technique that works like crazy in a minute.  Starbucks seems to have forgotten to promote the Clover (which would have increased their AOV and same store sales due to the Higher price per cup)

2.     If it fails, let it fail fast.  Clover is not new.  When the Starbucks I go to opened 6 years ago, it opened with the Clover machine.  That store, 6 years later has many many loyal Clover drinkers.  Despite their lack of promotion, many of us have gotten hooked.  6 years later you know we are going to be upset, a lot more upset than after 6 months or one year – long enough to test a new product I would say!

3.     If you customers tell you something… listen.  A year ago, Starbucks tried to remove the Clover the first time (to make room for their nitro cold brew).  Myself and dozens of other loyal Clover fans revolted, complained and eventually got it back.  We spoke to the store manager (a really great guy named T.J. who really pushed for us) and even spoke to the District Manager who eventually made it happen.  

4.     That should have been a big red flag for Starbucks  - customers fighting for what they wanted!  

5.     This last time, not only did we go to the District Manager, we also went to his boss.  But change happens and we weren’t able to get it done this time.  Sad!  

A simple promotion sales tool Starbucks totally missed!

When I spoke with the District Manager and his boss, I told them both about a simple technique that could increase Clover sales and ensure that the machine was an amazing success. 

The technique goes like this…

Ask people to try the Clover!  

Too simple right?  But the truth is, that is all you have to do.  That is how I learned of the Clover 6 years ago.  Now whenever I go to a major city like NY, I literally walk past plenty of other Starbucks just to get to the store with the Clover.  Get the picture.  

When the local store store first opened, I came in late in the day asking for a dark roast (they only brew dark roast in the morning I found out).  Some smart person at the register said you can have a dark roast pour over, or you could try the Clover.  It went like this:

Employee: “We don’t have dark roast right now, but you could have a pour over or try our Clover machine”

Me: “What’s clover machine?”

Employee: “It’s kind of Like a reverse French press.  Come here I will show you.”

She showed me the machine and I tried it.  And I was hooked ever since and literally go out of my way to find Clover machines when I travel.  (I even went to a Starbucks in Milano that had a Clover and you know how good the coffee is in Italy!)

THE MORAL OF THE STORY?

The Clover coffee costs more per cup for customers (I did not mind at all), therefore it can increase average sale, margin, same-store-sales for Starbucks.  To me all Starbucks had to do was teach their register folks to do more suggesting.  I offered for (for free) to teach their local staff, and do some role playing with them on how present a suggested sale, This would have taken all of a half hour of their time).  They didn’t respond to my offer (however to be fair the District Manager’s manager was very nice in his responses to me, and the store staff from T. J. on down – who are awesome BTW – have been very kind when they see a grown marketer cry)

Think about this #Starbucks if you are listening.  How many people in the afternoons or evenings come in for decaf, or ask for a dark roast?  All of those people are potentially people who could have been converted to Clover sales, right?  YES right!  

So, in closing, retailers do this online and in person.  Listen to your customers especially their complaints.  And train your register employees to spot opportunities, or at the very least offer up a suggestion on how to increase average order value by offering a cross sell or upsell.

Questions comments (I’m talking to you Starbucks), fire away below.  

UPDATE!

I sent the original version of this article, published in my column for Total Retail Magazine to the district manager and his manager at Starbucks. I have yet to get a response.

However, the good folks at my local Starbucks are doing their best to accommodate me and my tastes. The other day I walked into the store and saw this picture of a bag of Sumatra with my name on it right next to their pour over "machine". Thanks T. J. You are all awesome!

#samestoresales #aov #starbucks #coffee