Brand Tip: The Real Reason for the Bucks in Starbucks
By Peter van Aartrijk

In a crowded Starbucks on a hazy morning, Peter van Aartrijk made a startling discovery that is sure to shake up the very essence of our agency culture—all while nursing what he used to think was the most important quality of Starbucks: a pretty darn good cup of coffee…

In his excellent book, A New Brand World, branding guru Scott Bedbury tells a story about a visit by his former boss, Starbucks CEO Howard Schultz, to a local Starbucks.

The barrista (as they call those folks who serve up the coffee drinks) says to his big bossman: “You know, Mr. Schultz, we’re not in the coffee business serving people. We’re in the people business—we just happen to be serving coffee.”

Those two sentences gave Schultz pause to put even more emphasis into the quality of the people Starbucks hires.

I’ve seen it first hand.

My kid, age 15, is a swimmer. Anyone who has a kid who actually likes swimming can feel my pain. She gets up—all by herself—at, ahem, 4 a.m. That means dad’s getting up, too. While she’s logging miles in the pool, I’m drinking coffee and trying to see through the early morning fog as I log ounces in the neighborhood Starbucks, which opens at 5 a.m. (Hmm, do swimmers make future barristas? I’ll have to look into that.)

So one Tuesday, it’s 5 a.m., I’m sitting in Starbucks, and I realize there is a young lady near me studying a big workbook. Once in awhile an employee would come out from behind the counter and talk with her. I didn’t pay close attention until the second day, when I realized she was new on the payroll and was studying the employee manual.

The last time I checked, Starbucks was spending more money annually on employee training than advertising. As big a brand as it is—and it’s huge—Starbucks doesn’t place a lot of advertising. It focuses on a quality product, and quality starts first with the staff and second with the coffee bean.

At our agencies, we often get caught up in endorsements and riders and policy language and renewals and quotes and apps and so on, but none of it seems to make sense to customers and prospects. Why? Because they don’t care to make sense of insurance coverage. They care about protecting their families and growing their businesses. Some agents have successfully transitioned from “peddlers of policies” to trusted advisors who are so much more involved with their customers than the annual renewal. They understand, for instance, the real issues business owners are facing (e.g., OSHA compliance, keeping great employees with great employee benefits, etc.), and they help them address those issues.

Likewise, Starbucks employees will often go beyond the coffee to get to know their customers.

How about you? Are you in the insurance business serving people? Or are you in the people business? What can you do to break out of the jargon or renewal cycle and have more meaningful relationships, and even some more fun, with your customers? And while you’re at it, look in your local Starbucks to offer a quality young person an opportunity in a great business.

Peter van Aartrijk (peter@insuranceisfun.com) is Chief Fun Officer for Insurance is Fun! He has worked with independent agents and brokers on marketing challenges for 20 years.