Responsiveness Creates Revenue
I've been telling you this for a while.
We care about time more than ever. And now, in the AI era, our expectations around speed and responsiveness are just going to escalate. What was fast three years ago seems positively slo-pokey today.
And that has huge implications for your business:
85% of customers say responsiveness is a critical factor in their brand loyalty
66% of customers say speed is as-important as price
51% of customers will
hire whomever responds first, regardless of price
All of that (and a lot more)
is in my most recent book: The Time to Win: How to Exceed Customers' Need for Speed
The book explains why it makes business sense to be faster than your competitors.
And now Starbuck's figured it out.
New CEO Brian Niccol has been at Starbucks for less than 90 days. And already he's figured out that a key to turning around the moribund brand is to get....FASTER.
"We're going to be maniacal about getting after it," said Niccol on the quarterly earnings call for
investment analysts.
The new goal is to get every order completed in under four
minutes. Yes, please!
I do not have a complicated Starbucks order. Historically, it was
black coffee - literally the fastest beverage available. A year ago, I switched to Earl Grey tea, and that's not exactly a herculean effort to produce, either.
So when people in front of me in line order "a unicorn mocha with platypus milk, half caff, extra hot, with 3 grams of whipped cream, served in a hand-jeweled goblet" the resulting delays can be frustrating.
Niccol understands this. He gets that while Starbucks used to be the "third place" where people would go and hang out when not at work or home, the world (and consumer expectations) have changed a lot.
Fewer people are at a workplace, so having a "third" place is less needed. Mobile orders and drive thrus have increased speed expectations, too. Most people want their
drink, and they want it NOW.
He learned this as CEO at Chipotle, which isn't a
place you go to relax with a good book and chat with the burrito guy.
How is Starbucks
going to re-prioritize fast?
First, they are taking things off the menu that can't be
made in under four minutes.
Second, they are limiting some of the options so that
customers can't overly complicate orders.
Third, they are moving the condiments back out
from behind the counter, so that customers can add their own cream, etc. (this was, of course, how it used to be, pre-covid).
Seems easy, but it's not. When you have 38,000+ locations, any tweak is a challenge to implement.
But operational complexities of leaning into speed are not an argument against change, but rather an argument for it. Why? Because if it was easy, you'd already be doing it, no?
I say this on stage a lot when talking about speed...
This IS the time to win. Meaning, you have a once-in-a generation opportunity to be committed to speed and responsiveness before your competitors figure it out.
That chance won't last. You WILL have to get faster, eventually. Competition will force you to do it, as will escalating customer expectations.
But right now, you can be first (or at least early). And if you give your customers time, they will give you money. If you cost them time, it will cost you money.
If it was easy, you'd already be doing it. And so would competitors. The fact that it isn't simple to be faster is what makes it a
competitive advantage.
Starbucks just saw the light.
As we careen toward 2025, I'd love for you to consider how can you get faster and grow your business as a
result.
If you need some ideas, grab a copy of the book. It's only $9, or
three for $22.
