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Double Up Promotion from Starbucks

By Anthony Taylor - August 17, 2011

Are you one of those people that need a coffee to get you going? Sometimes you even need a second coffee in the middle of the day just to get through the day? Apparently there are a lot of us out there, and Starbucks knows it. When I went to get my morning coffee the other day, they told me that with my receipt I could come back after 2:00pm to get an iced coffee for just two dollars. I thought this was an awesome promotion for a few reasons:

  • Mmm Iced coffee in the summer!
  • That's a great discount on an iced coffee
  • Sneaky! They are going to get me to COME BACK so I can get my afternoon coffee from them, rather than a competitor

There are a few marketing concepts that go into this promotion including: increasing the dollar spent per customer and incentivizing the customer to come back to the store (plus, maybe they will buy food when they return). 

Starbucks does a great job of cross selling their customers, and manages to sell extra products where typically one is sufficient. Another company that is most well known for up selling is McDonalds with their famous line: " Would you like fries with that?"

What products or promotions can you offer to your customers for up sale/cross sell, and through that increase their lifetime value to you?

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