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Why Starbucks’ ‘Free’ Wifi Isn’t Really Free
Posted by Nathania Johnson
Starbucks is rolling out ‘free’ wifi today, but don’t be fooled - it’s not really free.
You have to buy a Starbucks card (basically a gift card to Starbucks) - and put at least $5 on it. You only get 2 hours of consecutive ‘free’ wifi when you use the card.
Yes, you can keep refilling the card, but what Starbucks is banking on is that you won’t use up that $5 card. That’s what retailers love about gift cards. They make money from those couple of bucks left on the card.
Think about it for Starbucks. You get a latte for about $3-4. That leaves money on the card. If you want to use wifi - you need to put more money on the card.
This is ridiculous and consumers will ultimately see through it. I can still go to Panera and hop on the internet quite easily. Caribou will give me an hour if I give them my email address (it’s far too easy to give them several email addresses). And most local indie coffee shops will give it to me for free.
Why buy the cow?
The One Thing Starbucks Needs to Do to Win Back Customers
Posted by Nathania Johnson
Photo attributable to scottfeldstein
Starbucks has outlined a 5 point plan to bring customers back to stores of the Seattle-based coffee company. But new espresso machines, a new coffee blend, and loyalty rewards will not lead customers back in droves.
The one thing that Starbucks has to do to bring back customers is….(drum roll please)…
FREE WIFI
In February, Starbucks announced that it would be updating its WiFi offering. They’re switching from Tmobile to AT&T. Some people will get free wifi as a result. Those who possess a Starbucks card will get 2 free hours of Wifi a day (and then it’s $3.99 an hour). AT&T broadband and U-verse customers will get unlimited free wifi.
That’s nice, but it’s not enough. I can go to Panera Bread, Caribou Coffee or any number of local independent coffee shops to get free wifi.
What Starbucks offers that these other shops doesn’t is convenience due to its many locations. But in the shopping area closest to me, there is a Panera, Caribou Coffee, and Camille’s Sidewalk Cafe that offer free wifi while Starbucks doesn’t.
If I want to head downtown, the options increase. All of the alternatives offers good coffee, and I don’t think Starbucks can come up with a blend powerful enough for me to interrupt my productivity to enjoy.
Having said that, I have gone to Starbucks twice this week. I’m not anti-Starbucks. I do like their coffee. But they have certainly lost a good portion of my business when I need a wifi coffee shop.