James Siminoff

Starbucks genius coupon

Image via Wikipedia

It might be time to buy some Starbucks stock again as it finally seems like they are figuring out how to leverage their massive customer base.

If you buy any drink from Starbucks in the morning they are now offering any iced drink for $2 after 2pm.  This is simply genius.  Since (I am just assuming this) that 99% of their customers come to the chain only once per day they are able to add additional revenue with this and not cannibalize overall customer revenue with this coupon plan.

I know a few people that are habitual morning Starbucks people who have now starting going to get their $2 drinks every day.  If this is happening on a wider scale then Starbucks could see some significant revenue and profit from this.

Some of the theory behind why things like the $2 coupon work are in the book Predictable Irrational, which I highly recommend reading if you have a consumer facing business.