What Starbucks Can Teach Us about Radio Advertising

Radio is a tricky medium.

Unlike reading a blog post, watching a movie or having a television show marathon, listening to the radio is rarely an endeavour that calls for full attention.

So what does this mean for radio advertising? HOW do you get a compelling message across to a potential buyer through the radio? WHY would you pay to circulate a radio ad when there are other mediums that demand more attention?

SHOULD you even bother?

Well if we’ve learned anything about marketing, it’s that any medium can be extraordinary with the right innovation.

And when it comes to innovation in radio, Australian-born Ronnie Stanton, Radio Consultant and VP of National Brands and Programming for Corus Entertainment, has some ideas.

The inspiration? Starbucks.

“What the Starbucks employee does is far more powerful. The strategy is not to have you order a larger coffee, it is centred entirely [on] enticing you to come back later that day with a discount coupon for your afternoon caffeine fix,” he says.

He’s talking about Starbucks’ “Starbucks Reward Card”. Part of a point-based reward system for frequent buyers of Starbucks’ coffee and edibles.

Rather than going for the up-sell, the Starbucks barista simply encourages them to sign up to receive points—points they can exchange for free coffee and more. In effect, Starbucks are presenting a strong case for making them the consumer’s regular coffee stop.

Ronnie believes that we can learn something from this approach:

“Extending listening session lengths is vital, but equally important are creating new listening occasions.” he says.

So rather than encouraging the listener to listen for a longer period of time (which Ronnie equates to a coffee up-sell), the idea is that you introduce some regularity and routine in order to make consistent customers (like offering coffee drinkers rewards for routinely drinking coffee).

It’s a perfect example of ways we can learn from success, even when it’s found somewhere outside of our own industry.

Ronnie considered the Starbucks model, the psychological and behavioural drivers behind it, and came to conclusions about how that philosophy could serve him in the radio world.

Have you learned anything about business or marketing from an unlikely place? We love hearing stories about entrepreneurs and business owners who’ve picked up lessons from pro fighters, poker and more.

And hey, if you’re interested in seeing what some of the lessons we’ve picked up over the years can do for your business, the best place to start is our free media audit. We’ll analyse your marketing funnel at no cost!

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