How did Starbucks open 20,000+ stores in 60+ countries, achieving a $60B+ market capitalization? It wasn't just about the coffee. We draw lessons from Jonah Berger's book "Contagious" to explain the success and growth of Starbucks.
Snapshot of Consumer Behaviors of March 2024-EOLiSurvey (EN).pdf
How the Starbucks Experience Became Contagious
1. More Than Coffee:
How the Starbucks
Experience Became
“Contagious”
How did Starbucks open 20,000+ stores in 60+ countries,
achieving a $60B+ market capitalization?
It wasn’t just about the coffee.
2. We recently read
“Contagious,”
which helped us understand why things catch on.
The book is by Jonah Berger.
If you’re a B2B marketer,
you should read it.
Why do things catch on? Berger identifies six ingredients.
Let’s explore further.
“Contagious” by Jonah Berger on Amazon
3. The 6 Ingredients
1. Social currency: We share things that make
us look good.
2. Triggers: Top of mind, tip of tongue.
3. Emotion: When we care, we share.
4. Public: Built to show, built to grow.
5. Practical Value: News you can use.
6. Stories: Information travels under the guise
of idle chatter.
Source: Page 207 of the book’s hardcover edition.
4. According to Berger,
brands don’t need to achieve all six ingredients.
But the more, the better.
Let’s consider Starbucks.
5. Social Currency
Social currency propelled
the growth of Starbucks.
People want to be seen at
Starbucks or, holding a cup
adorned with the Starbucks logo.
Photo from http://instagram.com/starbucks
6. Triggers
Action: “I need to get a coffee from Starbucks.”
The trigger to cause that action: “I feel…”
•
•
•
Tired
Down
Bored
That’s right:
•
•
•
Sad
Happy
Like celebrating
feelings (and their associated yearnings) are a trigger that fueled
Starbucks’ growth.
7. Emotion
From community to ethical
sourcing, from the environment
to global responsibility,
Starbucks has fostered an
emotional connection with
customers and communities.
“Join your neighbors and
volunteer with us,” they say.
8. Public
We started to see the green mermaid in
our sleep.
Whether the gym, the subway or the
office cubicle, the Starbucks brand
became ingrained into the culture of
America (and soon on many more
continents).
The product was consumed in public
and the public sure did notice.
Starbucks became a “walking brand.”
Photo from http://instagram.com/starbucks
9. Practical Value
Let’s face it: coffee is a commodity. But
Starbucks provides much more than coffee.
Think of its practical value.
Meeting a potential business partner?
Meet at Starbucks.
Need to do some work on your laptop or tablet?
Go to Starbucks.
Where to take the soccer team after a nice win?
Starbucks.
We go for the practical value as much
as the coffee.
10. Starbucks’ Report
Earlier, we referred to Berger’s
six ingredients.
Now, let’s see how well you were
paying attention.
How many did Starbucks achieve?
A) 0-2
B) 3-4
C) 5
D) 6
E) All of the above
2+2-1
+3-1=
?
Card
11. If you answered “E”,
We need to send you here:
The answer was…
12. “C”
Starbucks achieves 5 out of Berger’s 6 ingredients:
1. Social currency
2. Triggers
3. Emotion
4. Public
5. Practical Value
13. B2B Marketers:
Steal These Ideas
Social currency: Place social
sharing buttons throughout your
content (including SlideShare’s
and PDF’s)
Triggers: Achieve and reinforce
brand association (e.g. “Staples”
-> “Easy”)
Emotion: Create a user
experience that delights, inspires
and wows.
Public: Grow your user base
by giving away limited quantities
of your product away for free.
Or, consider a freemium
business model.
Practical Value: Solve your
customers’ greatest challenges
without breaking the bank.
14. B2B Marketers:
Read Our Blog Post for
More Details
What Contagious (The Book) Teaches Us about the Growth of Starbucks