Starbucks must run barcodes on their coupons, so they can be traced city-by-city, country-by-country.
A system must be put in place where Starbucks outlets record the bar codes—and the revenue—and return the information to HQ on a daily basis.
Suggested Offers on the Coupons
Because coffee drinkers and Starbucks are all over the world, these discount coupons cannot be in dollars. A Facebooker in San Francisco may have friends in France, Switzerland and Kenya—all of whom operate under different currencies. (Click on the media player at upper right to see my rough copy and designs.)
• Test No. 1: BUY ONE AND GET ONE FREE!
This applies to any product—brewed coffee, ground coffee, beans, food or mugs. You buy one and you get a second something for the same price (or less) Free.
• Test No. 2: BUY ONE AND GET TWO FREE!
These are powerful messages in any country and work in any currency.
(Note: The buy-one-get-one-free offer is equal to 50 percent off or half price, but far stronger. You cannot visualize half-off or 50 percent off. You can see two lattes in your mind's eye and sniff them in your mind's nose. Further, if the offer is a straight 50 percent off, Starbucks gets half price. Buy one at full price and get a second one free offer brings in twice as much revenue.)
• The Coupons: They must be dated (for example, offer expires July 31, 2012).
How Should Facebook Be Paid: Cash or Pay-Per-Click?
If the scheme works and generates cash for Starbucks, Facebook has to come up with a payment policy. I vote for cash.
Pay-per-click (PPC) is dependent upon response. Alas, the ad world is filled with arty creatives, who are into "branding," "brand recognition," "recall" and kumbaya feelgood blog blather. They have never made an offer or asked for an order in their lives.