5 Genius Ways Starbucks Used Psychology to Become the King of Coffee

1. Irrational Value Assessment: 

The Starbucks Effect

 When people see a high-priced item, they automatically assume it’s of a higher quality and more valuable than something that’s cheap.

 Example: Starbucks charged more for what used to be cheap and dressed it in a premium customer experience, with nice tables, good music, and friendly baristas.

2. FOMO Keeps Customers Coming Back

 The psychological pain of losing is twice as powerful as the pleasure of gaining something.

 FOMO gets customers into the store and makes them feel like they’re part of something exclusive and special.

 Example: Seasonal drinks that happen only at Christmas

3. Removing Friction: Starbucks Used Psychology to Create a Habit

Remove as much friction in your customer journey as possible. Make it so easy to interact, buy, and gain access to your product. 

Example: Their app removes two of the biggest pains from getting coffee, waiting to pay and waiting to get your order.

PLUS with its “order ahead” feature it also saves customers’ favorite drinks.

4. Cocktail Party Effect: Little Touches Make the Experience Feel Personal

The Cocktail Party Effect says that our brains zoom in on relevant information, like our names.

People love personalization and making you feel special helps create that premium-feeling experience.

Example: Using your name on the coffee cup. (Even if they do get it wrong on occasion...)

5. IKEA Effect: Starbucks Used Psychology to Make Customers Fall in Love

Psychology tells us that people love a product more when they co-create it — it’s something called the IKEA Effect.

Example: One of the smartest things Starbucks has done is encouraging people to customize their drinks. 

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Robert & Alek
CEO Sphere