Starbucks: Oops We Goofed!

Yes…I’m a Starbucks junkie I’ll admit it, but I won’t agree with their recent pull back of a coupon promotion that consumers could redeem for a free iced coffee.

While reviewing marketing news today that hit my inbox I came across an article that stated that Starbucks is withdrawing a promotional offer for a free iced coffee. This coupon was given to a number of employees and the employees could then forward it to family and friends.

Starbucks reasoning: It got out of hand. (otherwise known as it was costing too much money)

Let’s be honest here. There comes a time to take into consideration that perhaps what a company does may lose the loyalty of consumers. How many people will walk in to redeem the coupon and be told “Oops! We goofed that coupon is no longer valid.” Plenty!

Will this leave a bad taste in the mouth of the consumer? Absolutely! Will they go elsewhere? Perhaps, but the real question is “Has Starbucks lost the understanding of the importance when it comes consumer satisfaction and retention?”

Truthfully..from a marketing standpoint they should have honored the coupon anyway and cut their loses rather than upset faithful coffee drinkers. There are coffee chains popping up all over. I’m not just seeing Starbucks on every corner now. it’s time for them to realize they do indeed have competition and perhaps underestimating that competition would explain why Starbucks posted its weakest monthly same-store sales increase since 2001.

Your thoughts?