How Smart Coffee Shop Makes Customers Love Their Decisions
When you need to make a decision for your business, how do you start? Where do you start? What is the reasoning behind all of that?
Another question to approach your decisions: do you think about what you sell or do you think about what people really buy? Those are what we call commodity mindset and product mindset.
Before you stand firm on your decision, you need to set your mindset to something first. Choose your mindset. You don’t wanna lose your customers based on the decisions you make and decrease your business growth. Before we go deeper, do you know the difference between product and commodity? Think about your all-time favourite coffee shop. When you pay a visit there, what is the thing you’re paying for physically?
It’s gotta be your cup of joe or a cup of your favourite caffeinated drink. Now, this is what we call commodity. It’s the tangible, physical thing you exchange with your money and for you to use or consume. It works for other companies too, for example, you sell some kind of software and that software you sell is the commodity, even if people don’t have it in their hands physically.
Now think about why you keep returning to the coffee shop, and why is it your favourite?
An awesome cup of coffee helps, but that’s usually not the main reason to why you keep returning to your favourite coffee shop. The place offers you more than that. It gives you comfort, relaxation, productive environment, a chill vibe to give you an escape from workplace a place to socialise with your friends or simply to get your work done.
The stuff mentioned above is purely the reason why you keep returning to your favourite coffee shop. The commodity is the thing you buy and the product is what you really get.
In a coffee shop industry, the commodity is coffee and the product is the vibe or environment the coffee shop offers you. Another example to make it a lot more sense to you is a perfume business. The commodity of a perfume business is the bottle of perfume, the scented liquid you but and the product is the feeling of attractiveness you get from the perfume, the luxury and desired feelings. In the world of accounting, the commodity is you get the numbers and counting them all right, while the product is the organised feeling you get and the peace of mind.
Why is this related to your decision making in business?
Let’s see the big picture here, think of a big coffee chain. Imagine their minds seven to eight years ago when some people sat there and they thought, do we need a Wi-Fi in our coffee shops now? Today, the question is totally pointless. We need Wi-Fi and people actually come to your coffee shop for your Wi-Fi! However, back then it was not a simple decision. The cost can add up and it’s such a big investment.
If there was someone sitting in that meeting who looked at their business with a commodity mindset, their answer would have been a resounding “no.” They’d be looking at their product’s commodity — coffee — and basing their decision purely through that lens. In their eyes, people came to their business for coffee — Wi-Fi would just be an unnecessary expense.
If someone looks at their business in a big picture or in a commodity mindset, they would probably say no to every change or to every new big idea. They would only care about the sales of coffee. How much they sell it today, how many cups yesterday and things like that. They would make their decision through that lens. However, if someone sees their business through a product mindset and lens, they would see their place that sells more than just coffee and get curious, analyse why people buy its commodity and make decisions by that thought.
When they know that they actually sell the environment and experience, it would be a big strike to really have Wi-Fi in there. Totally worth it. This mindset also applies when it comes to small decisions. When you visit a coffee shop and you check out their furniture, you think of how comfortable and welcoming they look like. You see the lighting, how it affects the mood in the room and the music that could affect your mood, uplift you or make you blue. You need to consider those details.
At first, it all seems to cost you much and the extra cost is something a business always wants to avoid. Not each adds on is worth it for your business, but consider the facilities you could provide that your customers are really buying for. You’ll be able to know what investments that are worth the time or money by knowing that your customers are happy.
Now if you have trouble to figure out your business, it’ll be best for you to put yourself in customer’s shoes, understand their wants and needs to figure out what you really sell. This technique will be useful before you make any decisions for clients or your customers.
When you’re seeing through the lens of commodity mindset, make sure all your customers get the main thing you sell, the tangible thing itself. They know what they’re gonna get with their money in exchange for the item you sell. Ask yourself again, why people come to your coffee shop? Settle for that. Reach the product mindset more instead of the commodity.