Profiting from a Little Disloyalty
In order to stay ahead of their larger and more well-funded competitors Challenger brands need to think more unconventionally in every part of their business. Could your business profit by encouraging your customer base to try other competitors? Sounds absurd, but that is just what a group of coffee shops in Toronto are doing.
Toronto’s first disloyalty card launches next week, promising to send patrons on a tour of seven independent coffee shops. The goal to promote quality coffee and community, is the brainchild of the newly formed Toronto Coffee Conspiracy.
Once the business card-sized wallet cards are printed, you pick one up at your regular coffee shop (there will be about 500 per store) and that will be marked as your starting point. Then you visit the other six spots, buy any coffee that’s on the menu (brewed or espresso based), and get the card punched. When you’re done, you return to your starting point for a free coffee.
I was recently talking with a Coffee shop owner in Little Rock and he mentioned to me that Starbucks was voted the best coffee in town in their local newspaper survey. Most coffee connoisseurs in Little Rock could probably point you to 5 other local coffee houses who had better coffee than Starbucks. It is most likely that Starbucks got the vote because of its high awareness and a lack of strong awareness for independents in Little Rock, or possibly Starbucks is brewing better coffee in Little Rock than anywhere else in the country. None-the-less his shop and market segment (independent coffee houses) could benefit by developing a stronger coffee culture in their marketplace.
Can your business profit from a little disloyalty? Challenger brands can heighten the awareness for their market segment by partnering with competitors if done correctly. It’s tapping the power of group action and appealing to the mavens and your early adopters to drive larger market acceptance and a more robust culture for your niche. Could you successfully leverage group action and your competitors to overcome a dominant player in the market?
