DECISIONS,DECISIONS...What associations can learn from Starbucks! By Richard Morris
MEETINGS | FINANCES
DECISIONS, DECISIONS...
What associations can learn from Starbucks! By Richard Morris
14 2024 #1 AMIMAGAZINE.GLOBAL
Have you ever walked into a Starbucks, overwhelmed by the endless drink combinations, and ended up spending more than you intended? It turns out, there’s a clever sales strategy behind those enticing displays. In this article, we’ll peek into the world of coffee shop giants like Starbucks, Costa, and Pret, and discover how their tactics can help associations increase the sales from their conference exhibitions by 20 to 30 per cent.
The allure of choice
Believe it or not, there’s a surprising parallel between a steaming cup of coffee and a well-designed exhibition floorplan. Just like Starbucks isn’t simply selling caffeine, event organisers offer a platform for engagement with a targeted audience. The key lies in understanding how these coffee chains create a hierarchy of options, subconsciously nudging customers towards premium choices.
The three pillars of upselling
Just like a coffee shop caters to different preferences, exhibition stands come in a range of options. Let’s explore the three tiers that mirror consumer behaviours:
• The Budget-Conscious Buyer
(The Filter Coffee): This represents the basic stand option. It might not be heavily promoted, but it’s there for those who prioritise costeffectiveness. Think of it as the filter coffee – functional and familiar.
• The Value Seeker (The Goldilocks Option): This is the sweet spot, offering a balance between affordability and features. It provides the necessary space and functionality for a successful exhibition experience, akin to a classic latte – familiar, satisfying, and offering a good caffeine kick.
• The Premium Player (The Cause I’m Worth It Option): This is the top tier, boasting prime location, additional features, and a touch of exclusivity. It’s the equivalent of a handcrafted, premium coffee experience – a statement piece that elevates your brand image.
By understanding these different needs, you can tailor your exhibition sales framework to resonate with each client’s priorities.
Needs before numbers
“Have you noticed coffee shops don’t put the currency on the price?”
The most effective approach is to prioritise understanding the client’s goals for the exhibition. What outcomes are they seeking? What elements do they envision for their stand? By focusing on these aspects first, we avoid being drawn on budget discussions early on. Budget talk can quickly derail the conversation, leading to fruitless comparisons – like comparing apples to laptops! Instead, by prioritising needs over numbers, we can collaboratively design a stand size that perfectly aligns with their
MEETINGS | FINANCES
Just like coffee shops entice you with pastries at the checkout, introduce an “add-on” package at the decision stage...
AMIMAGAZINE.GLOBAL 2024 #1 15
objectives. This ensures the final product – the “filter coffee” of stand options in this analogy – effectively fulfils their desired function – the caffeine hit.
Presenting your options:
• The Essential (Filter Coffee): This stand fulfills the core needs – functional and cost-effective, offering access but not necessarily prime placement.
• The Enhanced (Goldilocks): This option expands on size (around 30% bigger) with an extra open side and a strategic location near a catering point.
• The Premium (Because I’m Worth It): A significant size increase (at least 50%) positions your brand prominently, like a main stage or near the entrance. This caters to “social signalling” and desire for a stand that reflects brand image.
Present a tiered selection of stands, each offering increasing features and visibility to align with client goals and budgets. This framework creates a natural upsell effect, making the higher tiers appear more attractive compared to the base option. Clients ultimately choose the stand that best reflects their brand and objectives.
The finishing touch
Just like coffee shops entice you with pastries at the checkout, introduce an “add-on” package at the decision stage. In our world, this could be a social media boost to amplify their presence or a post-event attendee mailer for continued engagement. This final touch provides additional value and maximises their exhibition ROI.
Conclusion
By employing these coffee shop-inspired tactics, you can transform your exhibition stand sales strategy. Offer a range of options, highlight the value proposition of each, and strategically suggest add-ons. Remember, people value perception – a well-positioned stand can elevate their brand image just like a perfectly crafted latte. So, the next time you’re in a coffee shop, take a closer look at the menu – you might just discover the secrets to upselling your next exhibition stand!
ABOUT THE AUTHOR:
Richard Morris is the director of Active Media Events. He specialises in maximising the commercial opportunities of meetings and events, particularly in the association space.