Skip to content

How Starbucks Lost Its Magic: A Lesson in Customization for Your Practice

I take my coffee black—no milk, no sugar. But to see the line at a typical Starbucks makes it clear I’m in the minority. Starbucks is a prime example of the Experience Economy in action, where greater value has been achieved as our economy has evolved. The company pioneered the premium coffee segment, demonstrating how an enhanced experience can drive significant economic value. See the chart below, which summarizes a framework known as the Progression of Economic Value, developed by Experience Economy authors Pine and Gilmore.

For years, Starbucks’ approach worked brilliantly. People gathered at Starbucks, spending both time and money. Was it just overpriced coffee, or was it an affordable (and rent-free) “third space” to meet and socialize?

Lately, the flood of negative press suggests that mobile ordering and drive-thru services have eroded the once-iconic “Starbucks experience.” The nearly infinite ways to customize a drink—officially 170,000, though unofficially likely in the billions—have led to longer wait times for customers seeking their perfect cup. Baristas are struggling to keep up, especially as the company pushes for higher efficiency (more drinks per hour) to sustain growth.

Even Howard Schultz, Starbucks’ founder, has expressed frustration, likening today’s Starbucks to a “mosh pit” rather than the elevated coffee shop it once was. Meanwhile, local competitors have stepped in to fill the gap, reviving much of what made Starbucks special in its earlier years.

It seems Starbucks may have swung too far in one direction and could learn from the “menu restraint” of chains like In-N-Out Burger, which thrives with a limited menu.

So, how does customization relate to medical practices? When you customize a service, it becomes an experience. In healthcare, every patient visit is unique, with recommendations tailored specifically to the individual. Terms like “personalized” and “customized” are highly relevant when discussing surgical planning and treatment. Even physical products like prescription eyewear are tailored to each patient’s specific needs.

As consumers, we tend to place higher value on customized offerings over standard or generic ones. However, there’s a fine line between customization and too many choices. Starbucks crossed that line, and they’re paying the price with diminished service and a less satisfying experience. Medical professionals should be cautious not to overwhelm patients with too many options.

While it’s true that people appreciate having choices, it’s a mistake to simply present all the options and let the patient decide. Consider how you describe your services and think about upgrading your language to elevate perceived value.

What patients truly want is your expert guidance. It’s important to discuss different possibilities, but you must also be ready to make a clear recommendation. Understanding this principle instills confidence in your patients and makes them more likely to take action on what you advise.

Leave a Reply