The blanket of warm air and the rich scent of roasted coffee beans waft through the air as the heavy wooden door locks the frosty weather behind. With the sound of chattering and soothing music under the dim lights, all the stress compiled from hours of work start to melt away with the sipping of a venti pumpkin spice latte in a pristine white and green cup. At the other end of the street, a family stumbles into the crowded shop to celebrate the victory of their child’s hockey game with a double-double coffee, hot chocolate, and glazed Timbits. Ever since the commercial production of coffee beans in 1907, coffee has been a morning routine for centuries; and since the expansion of globalization, billions of people around the world make an essential
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The missions of Tim Hortons and Starbucks carved two extraordinary paths since their beginnings. Firstly, Tim Hortons, the legendary hockey player, built his coffee shop in 1964 to provide a space for the community to connect socially with one another and create a sense of belonging (“Timeline | Corporate."). Although the company was built on the nation’s love for hockey, its affordable coffee and sweets were much like any other donut shop in the country. In contrast, the biggest coffee chain in the world …show more content…
Presently, Tim Hortons’ annual “Roll Up the Rim” campaign is an effective strategy, attracting customers by offering them a chance to win and gain more than what they paid for (CBC, par. 12). This method mimics lotteries, attracting customers to play by consistently buying during the duration of the contest. Regrettably, although the campaign has been a hit for the last 30 years, it is slowly losing the younger generation’s interest because Millennials no longer feel motivated about the chances of winning a new, especially an economical vehicle. On the other hand, Starbucks focuses more on retaining its customers with its loyalty program through technology. Loyalty programs “are proven to increase customer lifetime value by up to 30% or more by increasing visit frequency, increasing spend per visit, and winning back lost customers,” says Chris Luo, the vice president of marketing from FiveStars. My Starbucks Rewards program offers discounted and free store items through a three-tier rewards structure to encourage customers to purchase and gain better rewards. The results from Starbucks’ innovative program can be seen from the 18% increase in revenue since its introduction (Harris, par. 2). Hence, Starbucks is encouraging and retaining its customers to buy more long-term. Additionally, Tim Hortons is having trouble keeping up with the technological era. With
The missions of Tim Hortons and Starbucks carved two extraordinary paths since their beginnings. Firstly, Tim Hortons, the legendary hockey player, built his coffee shop in 1964 to provide a space for the community to connect socially with one another and create a sense of belonging (“Timeline | Corporate."). Although the company was built on the nation’s love for hockey, its affordable coffee and sweets were much like any other donut shop in the country. In contrast, the biggest coffee chain in the world …show more content…
Presently, Tim Hortons’ annual “Roll Up the Rim” campaign is an effective strategy, attracting customers by offering them a chance to win and gain more than what they paid for (CBC, par. 12). This method mimics lotteries, attracting customers to play by consistently buying during the duration of the contest. Regrettably, although the campaign has been a hit for the last 30 years, it is slowly losing the younger generation’s interest because Millennials no longer feel motivated about the chances of winning a new, especially an economical vehicle. On the other hand, Starbucks focuses more on retaining its customers with its loyalty program through technology. Loyalty programs “are proven to increase customer lifetime value by up to 30% or more by increasing visit frequency, increasing spend per visit, and winning back lost customers,” says Chris Luo, the vice president of marketing from FiveStars. My Starbucks Rewards program offers discounted and free store items through a three-tier rewards structure to encourage customers to purchase and gain better rewards. The results from Starbucks’ innovative program can be seen from the 18% increase in revenue since its introduction (Harris, par. 2). Hence, Starbucks is encouraging and retaining its customers to buy more long-term. Additionally, Tim Hortons is having trouble keeping up with the technological era. With