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August 16, 2011

Starbucks and iPhone - Coffee and an Apple

By Peter Bernstein, Senior Editor

You have to give Starbucks credit. By making stores destinations where you want to linger instead of just joints to grab a cup of morning Joe, they transformed the intensely competitive coffee shop business. In the process they taught a lesson that should be emulated more often by those in other industries, i.e., people will pay a premium for a compelling customer experience. Between things like being the first to offer Wi-Fi Internet access and providing gift cards with a free iTunes download, they always seem to be at the forefront of creativity in giving customers that little something extra that engenders intense loyalty. Well they are at it again. 



As widely reported, Starbucks has announced it will be offering what it is calling “Pick of the Week.” In essence, this is an updated version of the free iTunes download, but substituting a free iTunes app for a gift card.  Every week, when you make a purchase at Starbucks, you can receive a coded card that is redeemable at the iTunes App Store for a song.

Shazam Encore, the popular music search app that costs $5.99, kicked off the promotion on August 15. Given that this is comparable to your morning jolt, not a bad deal. This is certainly a reason for at least a weekly check-in at your local Starbucks, which, after all, is the whole idea. Who knows, go often enough and use your Foursquare (News - Alert) app (today saw President Obama signing up), and maybe you will become a Mayor of Starbucks. Talk about health food. Would you like some Apple (News - Alert) with that latte?


Peter Bernstein is a technology industry veteran, having worked in multiple capacities with several of the industry's biggest brands, including Avaya, Alcatel-Lucent, Telcordia, HP, Siemens, Nortel (News - Alert), France Telecom, and others, and having served on the Advisory Boards of 15 technology startups. To read more of Peter's work, please visit his columnist page.

Edited by Rich Steeves
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