The Starbucks effect: Personalization strategies for local businesses

Personalization has become a cornerstone of successful businesses, as demonstrated by global brands like Starbucks. The “Starbucks effect,” where customers feel a sense of belonging through personalized experiences—like having their name written on a cup—is not just a tactic for corporate giants. Local studio owners can leverage this principle to strengthen relationships with their customers, boost retention, and grow revenue.

Let’s explore how this concept translates to the fitness, martial arts, and membership-based industries and how you can implement it effectively.

Why personalization matters

Have you ever met someone just once, and then when you saw them again later, they remembered your name and details of your conversation? How did that make you feel? Or even simpler, think of a time when someone addressed you by your name in a crowded setting. It’s a great feeling—a moment that makes you feel seen and valued.

Customers want to feel this way too, whether they’re buying coffee or signing up for a fitness class. Personalization signals that you see them as individuals, not just numbers. This sense of connection leads to:

• Increased customer loyalty: When customers feel recognized, they’re more likely to stay and refer others.
• Higher perceived value: Personal touches make your services feel premium, justifying higher price points.
• Better engagement: Personalization keeps your members invested in their progress and your offerings.

Lessons from the Starbucks effect for local studios

1. Know your customers’ preferences Starbucks doesn’t just write names on cups; they remember orders, preferences, and even special requests. For your studio, this could mean knowing a member’s favorite class, their progress in belt ranking, or their fitness goals.
   • Example: If a martial arts student is nearing a belt promotion, acknowledge their progress in class and send a congratulatory email. This can motivate them to stay engaged and work harder toward their next goal.
2. Create unique touchpoints Starbucks makes the ordering process special. Your studio can do the same by tailoring interactions. For instance:
   • Send birthday wishes or special anniversary discounts for loyal members.
   • Recognize milestones, like completing 50 classes or achieving a personal best.
3. Fitness membership software tools like MyStudio can automate these touchpoints, sending personalized messages at scale while maintaining a human touch.
4. Engage with names The simple act of using someone’s name can make a significant impact. Your instructors or front-desk staff should greet every member by name when they walk in. If this seems challenging, MyStudio’s CRM feature can help track member names and preferences, making it easier to train your team to provide that personal touch.
5. Leverage data for deeper connections Just as Starbucks uses customer data to predict preferences, your studio can use insights to tailor your offerings. For instance:
   • Analyze attendance trends to identify popular class times and formats.
   • Use feedback forms to understand what members love and what they’d like to see improved.
6. MyStudio’s analytics can give you a clear view of these trends, enabling data-driven decisions that make members feel heard and valued.

Putting it into action

Here’s a step-by-step guide to integrating personalization into your studio:

Step 1: Gather insights

Start by collecting information about your members:

• Their goals and motivations.
• Class preferences and attendance patterns.
• Important dates, like birthdays or membership anniversaries.

Step 2: Build processes

Create systems to ensure these insights translate into action:

• Automate milestone notifications. For example, send a “Congrats on your first month!” email.
• Use personalized reminders for members who miss classes to encourage them to return.

Step 3: Train your team

Ensure your staff understands the importance of personalization and give them tools to succeed:

• Equip them with member data so they can greet customers by name.
• Encourage them to celebrate achievements—even small ones—publicly in class.

Step 4: Scale smartly

As your studio grows, maintaining personalization can become challenging. That’s where technology like MyStudio comes in:

• Use MyStudio’s automated messaging features to send tailored communications.
• Track progress and preferences with a centralized CRM to ensure every member feels valued.

Real-world example

At InCourage Martial Arts, the focus on personalization has been a game-changer. By tailoring programs to meet parents’ needs for after-school care and summer camps, they created a unique value proposition. This strategic pivot led to the opening of five additional locations, each grossing over $1 million annually.

This level of success came from understanding their audience deeply and making personalized adjustments to their offerings.

Final thoughts

Personalization isn’t just a buzzword—it’s a proven strategy for building loyalty and driving growth. By implementing the principles of the “Starbucks effect” in your studio, you’ll create a community where members feel valued, engaged, and eager to return.

Whether it’s through personal greetings, milestone acknowledgments, or tailored communications, small efforts can lead to significant impacts. And with leading martial arts software tools like MyStudio, delivering these experiences becomes easier and more scalable.

Book a demo with MyStudio today to learn how we can help you tailor and personalize your member journey, enhance engagement, and grow your business.

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