Maybe Starbucks is not going anywhere quite yet, or in the near future for that matter, but there is a shift taking place in consumers’ coffee drinking habits that changes the game a little bit for Starbucks and other coffee distributors. The emergence of specialty coffees has shifted perceptions of coffee. Some people are now viewing it as more of a fine beverage (comparable to a well-crafted wine) rather than just brown caffeinated water we grab at the nearest fast food joint on our way to work.

When Starbucks came on to the scene they laid the ground work for coffee to be seen as more of a treat than it was PS (Pre-Starbucks) but just like in any market, evolution has begun and will continue on. This “treat” has now evolved into a growing number of specialty options provided by coffee roasters like Stumptown in Portland, Intelligentsia in Chicago, and Counter Culture in North Carolina. These coffee shops have taken the Starbucks concept to a new level by not only offering a variety of specialty coffees but also placing more focus on the encounter with the beverage itself not just in the atmosphere of the shop. Coffee from places like Stumptown is meant to be savored and enjoyed as a delicacy. They are employing the new competitive advantage in this industry – turning a cup of coffee into a unique rich experience.

To quote an article in Time magazine, “Stumptown is the leader. They’re the cutting edge.” Stumptown and its founder Duane Sorenson are leading the way in this evolution by offering more single-origin coffees than anyone (20 so far) and positioning themselves at the forefront of every “new-coffee frontier” (i.e.-international partnerships). Stumptown is a leader in changing people’s perception of coffee. It’s no longer just a staple commodity but a specialty beverage with more of a luxurious and glamorous appeal.

As part of their strategy in changing and managing these perceptions Stumptown includes a card in every bag of coffee with information on the location, elevation, and other details pertaining to the beans inside. This connects people to the origin of their purchase and creates a deeper connection with the product and the Stumptown brand. Oliver Strand from the New York Times who has covered this new era of coffee drinking in his journalism has said, “Even when it costs more, you’re still talking about getting an incredible experience for $2.” Experience being the key word there, the new competitive advantage in this marketplace that is adding much more value to a cup of coffee.

While this may be a new focus for the coffee industry, it’s safe to say that this concept applies to and has always applied to many other industries and markets. It’s not just about the the tangible good or the once and done service but the transaction as a whole, the experience or connection with product or service. The deeper the connection the better. It’s important to always be asking yourself, “Is there something more I can be doing or offering to add more value to the customer experience?” Maybe like most coffee shops at first, you don’t think the idea of providing the full “experience” applies to your sector but look at Stumptown. Look at what forward thinking, innovation, and looking at the big picture did for them (and think about what it can do for you). They now have 8 locations, offer online sales, and are growing leaps and bounds in popularity.

To learn more about this “experience economy” read this article in Entrepreneur magazine. Anybody doing something unique in your industry to enhance the customer experience with your company, organization, product or service?