Today I want to share some thoughts based on an article from the Harvard Business Review, written by B. Joseph Pine II and Louis-Étienne Dubois, entitled “How Starbucks Devalued Its Own Brand”. Although the article focuses on Starbucks, there are a lot of lessons that can be applied to other brands.

What's happening to Starbucks?

Starbucks, a brand that was once synonymous with exceptional experiences, has begun to lose its essence. In recent years, she has made decisions that have led to what the authors of the article call “self-commoditization”. This means that, in their quest to be more efficient and increase their sales volumes, they have sacrificed what made the experience at a Starbucks store special: the human touch.

One of the most striking examples is how customer experience has become secondary. The comfortable sofas and chairs, which invited to stay and enjoy, have been replaced by harder and less welcoming furniture. Not to mention the scent of freshly ground coffee, which has been replaced by pre-packaged coffee. Instead of encouraging connections and enjoyment, Starbucks seems to be pushing its customers to come and go as quickly as possible.

The value of experience

This focus on efficiency can generate short-term gains, but at what cost? Brand authenticity erodes and the sense of community, which previously defined Starbucks as that “third place” between work and home, fades. The authors of the article remind us that companies that stand out don't just sell products or services; they sell experiences. And when those experiences are compromised, brands risk losing their soul.

How can you avoid this mistake in your company?

The Starbucks story provides us with a key reminder for any company. While it may be tempting to focus on efficiency or increasing sales volume, we should never lose sight of the fact that the real value lies in the customer experience. This means making sure that every interaction with our brand is valuable, human, and most of all, genuine.

It's not just about offering a product or service; it's about helping our customers feel understood and supported. Unlike what Starbucks has done recently, we must focus on providing a clear and personalized experience, one that makes our customers feel that their opinions are heard and valued.

What we can learn from this case is the importance of always keeping our purpose in mind: to help our clients make informed decisions based on their real needs. If we stick to this approach, we will avoid falling into the “commoditization” trap and continue to provide a value that really makes a difference.

References

Pine, B.J., & Dubois, L.-E. (2024). How Starbucks Devalued Its Own Brand. Harvard Business Review. https://hbr.org/2024/06/how-starbucks-devalued-its-own-brand