Small pleasures, big opportunities

$2,160 per working year. That’s assuming 720 cups a year at $3 a cup. And that’s just during the five day, 48 working week year. Add two cups on a Saturday and Sunday and which makes another $624 and then two cups a day on holidays and we’re up to a total cost of $2,904 in quality barista coffee. Let’s call it $3,000 in after tax pay, shall we?

Many of us have done – or actually been asked to do – that calculation before we take on a mortgage. It’s a scary number, but also one that allows us to sleep better in the lower caffeine “I’ve got a new mortgage” phase of our lives. It also puts into perspective why the coffee shop industry is such a large and important part of our culture, and why it holds a big share of our retail and small business sector.

But the challenge for a retailer in any of the habitual parts of our shopping life is to keep us happy, but not bored by our routine. The same issues face the petrol/service station retailers, grocers and convenience stores. “I visit you many times a year. I want it to be an easy shopping experience because it’s habitual, but if it gets too easy I’ll get bored and try somewhere else.”  

We are a contradictory and difficult group to read when we are in our role of shopper.

So upon entering two of my favourite coffee shops recently I was faced by – no confronted by –  change. It was a thoroughly disturbing feeling, as the furniture had been moved around, the papers moved, and the service counter moved too. It was obvious from the level of conversation, as every other shopper commented on the change, that most of my fellow caffeine consumers were also disturbed. Pre-morning coffee too.

But what a positive change. The noise levels were up and interaction between staff and shoppers, and between shoppers and shoppers, was also way up. And this allowed staff to start conversations, asking shoppers if they’d tried the new muffins. And because there’s background noise and buzz, shoppers feel comfortable talking and accepting something new. 

Add three muffins a week at $3 each and my coffee plus add-ons just touched $3,500 a year, which will service $50,000 worth of mortgage at a 7 per cent annual interest rate.

Now, I am not advocating the nation give up coffee to buy houses. Our national productivity, and general morning happiness rates, would drop like a stone.

What I am pointing out is how easy it is to introduce change into a habitual shopping environment and increase engagement with your shoppers, therefore increasing turnover and profit. All it requires is a willingness to proactively make changes once in a while.

In his role as CEO of CROSSMARK, Kevin Moore looks at the world of retailing from grocery to pharmacy, bottle shops to car dealers, corner store to department stores. In this insightful blog, Kevin covers retail news, ideas, companies and emerging opportunities in Australia, NZ, the US and Europe. His international career in sales and marketing has seen him responsible for business in over 40 countries, which has earned him grey hair and a wealth of expertise in international retailers and brands. CROSSMARK Asia Pacific is Australasia’s largest provider of retail marketing services, consulting to and servicing some of Australasia’s biggest retailers and manufacturers.