Rihab Ben Ali

[Mike Lisovetsky @_Liso_]

Starbucks is well known for being the biggest coffee brand in the world.

But few know how they use psychology to make $15,000 from each average customer.

Here are 5 techniques Starbucks uses to grow their brand (and how you can too).

THREAD 🧵

[Mike Lisovetsky @_Liso_]

Why is Starbucks the biggest coffee brand ever?

Hint: Not because of their coffee – but from mastering psychology.

To understand how they sell 4 million cups a day - you must understand the tactics they use.

Let's dive in…

[Mike Lisovetsky @_Liso_]

1. Pricing Effect

You think Starbucks charging 3x the normal price of coffee is bad? Not really…

We don’t base the value of a product on its features.

Instead, we base it on how it makes us feel (known as irrational value)

We associate higher prices with better quality.

[Mike Lisovetsky @_Liso_]

Starbucks capitalizes on this…

With their coffee, they add:

• Nice cups
• Great music
• Attractive cafes

Mixing coffee with great customer experience.

Tip: How can you add a premium experience to your product?

It'll help you get more customers and charge higher prices.

[Mike Lisovetsky @_Liso_]

2. Leveraging FOMO

Our pain of losing is 2x as powerful as our pleasure of gaining.

This is called Loss Aversion.

Starbucks Christmas coffees are so loved, it’s a tradition to get one.

But they’re only available 4 weeks a year…

Meaning you rush to buy one - driven by FOMO.

[Mike Lisovetsky @_Liso_]

Tip: How can you add FOMO to your product?

Here are 3 ways:

• “Limited to 8 spots”
• “Last chance to buy at $997 forever”
• “Order in the next hour to get $357 off”

You’ll see a 10x boost in sales (don’t overuse them though).

Now onto personalization…

[Mike Lisovetsky @_Liso_]

3. Personal Coffee

You know what people love more than caffeine? Custom-made coffee.

Sure, it’s only writing your name on a cup, but Starbucks does this intentionally.

Our brain focuses on what's relevant to us - like our name.

Making a memorable experience, so we come back.

[Mike Lisovetsky @_Liso_]

Tip: How can you make your product/service memorable?

Let's say you’re an eCom brand selling swimsuits…

You could send the customer:

• Custom packaging
• Thank-you cards (with their name)
• An extra gift alongside your product

That’s how you stand out from 90% of brands.

[Mike Lisovetsky @_Liso_]

4. Remove Friction

The internet has made it easier to order products on the go.

Starbucks uses this in their app…

They remove the biggest friction in ordering coffee - waiting for it.

Using the “order ahead” feature, they let customers grab a quick coffee as they commute.

[Mike Lisovetsky @_Liso_]

Tip: Remove your customer's friction - by saving them time and effort.

If you’re running a SaaS, ask for their email…

Then ask for more details AFTER they’ve signed up (saving them effort).

Example: Notion vs Spotify sign-up page. Which one do you think converts better?

[Mike Lisovetsky @_Liso_]

5. Freedom Of Choice

Psychology says: People value a product more when they create it.

So Starbucks lets customers design the coffee.

You can get:

• Half caff
• Extra ice
• Whipped cream

Whatever you want, they’ll make it.

The freedom of choice empowers customers.

[Mike Lisovetsky @_Liso_]

Tip: Let your customers design your product before ordering.

If you’re selling neon lights, let them:

• Pick the size
• Choose the color
• Add their name to the design

Customers have different tastes, so let them pick.

Put yourself in their shoes with customization.

[Mike Lisovetsky @_Liso_]

Summarizing how Starbucks uses psychology…

1. Charge high prices to increase customer's perceived value
2. Leverage FOMO to get quick buyers
3. Personalize your product
4. Save the customer time and effort
5. Let them co-create the product

[Mike Lisovetsky @_Liso_]

Thanks for reading 👋

This thread took a long time to put together…

So if it helped you learn more about psychology, drop the first tweet a retweet.

[Aazar Shad @Aazarshad]

She was a national chess player, a chemical engineer turned marketer.

She is running a multi-million media business & a $130K+ side hustle.

7 marketing mental models & lessons you can learn from her:

[Mike Driscoll @driscollis]

You can download a file with #Python in three lines of code:

[Jordan Daley @JDaley]

Push yourself to be better everyday.

[Karthik Sridharan @KarthikS2206]

If you are a developer, marketing has never been this affordable and scalable.

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Combine the two skills and achieve financial freedom.

[TestDriven.io @testdrivenio]

Python Clean Code Tip:

Don't use flags in functions

Flags are variables passed to functions, which the function uses to determine its behavior. They are considered bad because functions should only perform one task. -> split your function into smaller functions.