The other day, I found myself grabbing a takeaway coffee from a local café. As I waited in line, the tantalising aroma of freshly brewed coffee filled the air, and I was really looking forward to my cup. When I reached the counter, the barista greeted me with a smile and asked, “Would you like to try our limited edition blend for a smoother taste? It's just an extra 30p.” Intrigued but also slightly puzzled, I decided to give it a miss.
As I walked away with my coffee, something felt amiss. I wasn't anywhere near as excited about my usual coffee anymore—was its 'smoothness' compromised? I couldn’t help but wonder: why not just use that blend anyway if it offers a smoother taste? Why ask me to pay more for a better experience? Doesn't that make the regular blend seem inferior? How can this strategy be good for the brand? Surely you want your coffee to be the best it can be at all times. And what process makes it smoother that costs an extra 30p per cup?
Unpacking the Nudge
This experience is a case of several potential nudge theory techniques in action but poorly executed. Let’s break down some potential motivations behind this approach, why it didn't land well with me, and what it means for the brand.
The Scarcity Principle at Work
By marketing the blend as 'limited edition,' the café is using the scarcity principle. This psychological tactic suggests that people value items more when they perceive them to be scarce. The exclusivity of the blend creates a sense of urgency and specialness, nudging customers to try something they might otherwise overlook.
Price-Quality Heuristic
Offering a premium, smoother blend at a higher price taps into the price-quality heuristic. This cognitive bias leads people to assume that more expensive items are of higher quality. By pricing the limited edition blend higher, the café subtly suggests that this blend is superior, encouraging customers to spend more for what they perceive to be a better product.
Anchoring Perceptions
Anchoring is perhaps another subtle nudge at play. By setting a higher price for the premium blend, the café establishes a reference point. Even if you opt for the regular blend, the presence of a more expensive option makes the regular one feel like a better deal, influencing your perception of value.
The Brand Balancing Act
However, this strategy is a double-edged sword. If not handled carefully, it can lead customers to question the quality of the core offering. If the limited edition blend is marketed as significantly better, it might imply that the regular blend is subpar.
Additionally, an overemphasis on upselling can backfire. If customers feel pressured into spending more to get an acceptable product, it can erode trust and negatively impact their overall experience with the brand.
Striking the Right Balance
To maintain a strong brand reputation, it’s crucial to balance upselling techniques with a consistent quality baseline. Customers should feel that they’re getting a great experience, regardless of whether they choose the premium option.
Recommendations for the Café
1. Maintain High Standards Across All Products: Ensure that the regular blend is of high quality so (overthinking) customers (like me) don’t feel short-changed if they opt for it. Maybe don't use words like 'regular' or ‘standard’. House-blend?
2. Better Communication: Be clearer about what makes the limited edition special without disparaging the regular blend. Highlight unique features rather than just overall ‘quality’ improvements.
3. Positive Framing: Instead of suggesting the premium blend is smoother (implying the regular isn’t), frame it as a different experience—perhaps with unique flavours or origins.
Conclusion
By understanding and carefully applying these principles, the café can enhance its brand without undermining the perceived quality of its regular offerings. No business should ever offer any product at any tier that they consider inferior. All choices offered to customers should all be value-adding in some way and never based on any sort of compromise, as the only thing that will end up being compromised is your brand!