Xmas at Timmy’s

I was in Tim Horton’s.

Something interesting happened. When I was about to order my coffee, two little girls walked in and asked everyone if they could sing us Christmas Carols.

After their 10 seconds huddle, off they go. I didn’t know what they were singing (It’s just me. I have problem catching lyrics), but it sure was lovely.

Someone was saying how we don’t know our neighbours anymore. I don’t know. I grew up in the age of not-knowing-neighbours. I don’t think it’s that bad. Maybe we just like the idea of having good neighbours. Sure it’d be nice, but it’s also never been easier to get in touch with friends and families.

Everyone Should Drive Less Except Me

Consider the following questions:

Do you think the government should do something about climate change?
Yes

Do you think industries should adopt sustainable business practices?
Yes

Do you think we should drive less and drive more fuel efficient vehicles?
Yes

Do you think we should keep gas price low?
Yes

People consume less when price is high, and consume more when price is low. I don’t see how low price and low consumption would be magically compatible in this case, but apparently plenty of people do (or wish it is).

All of us drive less in response to high gas price, by planning our routes carefully, carpool, taking public transit, driving a smaller car.

When price drops, we may not consciously drive more. Instead, we’ll just “not drive less”, and maybe get back to our old habits.

Why would anyone drive less when bus fare cost as much as gas price? Why would industries do anything different in turbulent times if the old ways cost much less again? Why would the government do anything if voters oppose long term solutions?

To illustrate, consider the following questions:

DO you agree that polluters should pay tax?
Yes

Do you agree that carbon dioxide is a major pollutant that causes climate change?
Yes

Would you support carbon tax on gasoline?
HELL NO!

It pisses me off when people blindly oppose carbon tax, saying that it will push up gas price. Hmm.. No shit! That’s the whole point. How else would everyone drive less?
 
 
Perhaps now is the best time to implement brave carbon tax policies, before people start whining about gas price again.

Gift Card for Xmas?

I don’t drive, so I’m probably not in the position to judge this. But even if I do, I don’t think I would be thrilled to get a gift card from Esso for Xmas.

Wonders if the marketing people from Esso actually think it’s a good gift idea.

Stop Sending Those Fake Personal Junk Mails!

I hate getting junk mails, especially those fake personal junk mails.

They usually use handwriting typography, but it’s pretty easy to tell that they are not actually hand written. I understand that they want to make it more “personal”, but you can’t fake a personal touch. They are completely incompatible. Sometimes I even feel insulted as they try to fool me this way. (Also applies to Twitter’s automatic direct messages, and others alike.)

On the other hand, if you run a local business, it makes sense to invest in genuine personal invitations (note that if you make it personal, it becomes an invitation, not unsolicited junk mail). If I ever get a handwritten invitation, I would be 100 times more responsive to the message.

Maybe a handwritten mail is too much to ask (or it might look, but at least sign it for real? It doesn’t take that much time. If you are too busy, you can scribble. In fact, you can just let someone else do it. Who knows what your signature looks like?

The point is to show that your message comes from a human being instead of a Xerox machine. It’s so easy to standout this way, but I have yet to receive anything like it.

Philanthropic Consumption: Starbucks’ (RED) Campaign and What They Should’ve Done

Starbucks has just launched a campaign. Here is a paragraph taken directly from the (RED) campaign website.

The much anticipated Starbucks Holiday beverages will turn (RED)™ from November 27 through January 2. Customers’ daily visit to Starbucks can directly help saves lives in Africa. For every purchase of a (STARBUCKS)RED EXCLUSIVE beverage – Peppermint Mocha Twist, Gingersnap Latte and Espresso Truffle – at participating stores in the U.S. and Canada, Starbucks will contribute five cents to the Global Fund to invest in AIDS programs in Africa. Additionally, in honor of the 20th Anniversary of World AIDS Day, on Monday, December 1, Starbucks will extend the five cent contribution to every hand-crafted beverage purchased at participating stores as a continued way to save lives in Africa.

Every company should be very careful when they do cause related marketing (CRM). Doing it wrong would be counterproductive. Here is consumers’ perception: “I pay $4 or $5 for your (overpriced) coffee, and you are only giving out 5 cents? That’s only 1%. I might as well donate money to charity myself!” (but probably end up forgetting it)

Now consider this: Starbucks is in a crisis mode now. Their net income has dropped 97% due to economic slowdown and store closures. Their operating profit margins is now at 0.6%, comparing to 10.2% last year. Yet they still decided to push this campaign forward. Some say it’s just a marketing ploy in an effort to boost sales and get good publicity. I don’t know. Maybe Howie really wants to help Africa, and he can, considering in 2007 their revenue was $9.4 billion, and even 0.5% of that in one month is $4 million.

But I think they got it all wrong. Starbucks should be helping customers to do the right thing, instead of asking customers to help them do the right thing.

People might have an unreasonable expectation toward Starbucks, and they can never be generous enough. At the same time, we probably don’t want to put our retirement fund in a company that donates 100% of its profit. Therefore, the responsibility for generosity should be placed on customers, not Starbucks.

So how could Starbucks do differently?

Starbucks can have their cashiers ask customers if they would like to donate their change. For example, $4.10 could be round up to $4.50 or even $5.00, that is 10% and 22% respectively. MUCH better than 1% right? Most people would do it. I mean, who doesn’t care about Africa, especially when we are asked to donate only few cents for the world’s most underprivileged.

This is an old tactic, and it has a few drawbacks. First, it might be too intrusive. Second, it will slow down the line because it takes time for cashiers to explain the whole thing. Third, it’s only good for a short period of time. Having it last too long could create donors’ fatigue. Lastly, it’s not effective in boosting sales.

So I have an even better idea. Why not issue a new line of Starbucks Card called “Round for the World” or something.

When you use this card, every time it automatically rounds up for donation. On the receipt it will say how much you have donated to date. You can register the card online to enter the hall of fame (of philanthropist / coffee addict) or vote on what projects to support. It could be a gift that carries more significance than a regular gift card. I am no accountant, but perhaps the interest of the unearned revenue from these cards could be donated as well?

Most importantly, this program would be on-going. It will be part of the Starbucks brand, and the center piece of the company’s social responsibility effort.

Of course, I am not just talking about Starbucks here.

Do you think this will work? Any drawback I overlooked? Other ideas?

Update [Dec. 7, 2008]: Just submitted the idea to Starbucks Idea website. I’m hoping it doesn’t get buried by suggestions about mug designs or installing fish tanks. So if you like the idea, go bump it up! I actually want to see this happen and not just talk about it.

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