Starbucks- Booming Sales with Christmas Spirit

Posted on December 9, 2011

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The decorations, the colorful red cups, the smell of the season’s special peppermint mocha coffee, even the music- just about everything that Starbucks does around the holidays scream Christmas.

It’s fair to say that this coffee brewing juggernaut knows how to capitalize on the winter season, something that studies effortlessly reflect. Just last year, U.S. sales of Starbucks gift cards average 42 per second, while the company brought in a total of $2.95 billion, during the holiday season.

But do little boys on sleds and nutcrackers depicted on coffee cups really boom business? According to Businessweek, Marketing Senior Vice-President Terry Davenport says it does. Multiple years of studying has proven that the holiday spirit can inspire spending. The cups work, and a holiday music compilation featuring Bob Dylan doesn’t hurt either.

They even have a select number of baristas (6 to be exact) stow away their traditional green aprons, to wear festive red ones, just for the holidays.

How are they reaching out beyond a 150 versions of their holiday line of petite desserts, including a peppermint brownie cake pop? Snail mail customer rewards is the answer. For those who brew their own blend in the morning, avid Starbucks goers now rely on their special Starbucks debit cards in order to earn rewards, such as free cups of coffee.

So how do patrons receive these rewards?

Not online, surprisingly. Instead of electronically adding the rewards via points to their Starbucks debit cards, the business uses snail mail to deliver coupons.

There are plenty of customers looking for technological advances to their Starbucks reward experience, rather than stuff a hunk of cardboard in their pocket. But for many, snail mail is the most authentic way to receive the gift, as it takes on a tangible form that they can see and touch. Direct mail targeting offers customers the ability to use their senses instead of the cold counterpart of the digital world, and it often makes all the difference (something that Starbucks gets).

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