The Coffee + Donuts Method
What pairings can teach you about your small business strategy.
This week I learned that Dunkin’ Donuts sells more coffee than it does donuts. I’m not shocked– I drink coffee every day, but donuts? Meh maybe a few times per month at most. Donuts are alluring, coffee is a lifestyle. This stat got me thinking though… How many other businesses are in a similar situation?
For example, is McDonald’s actually a real estate business?
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“Be an opener of doors.” — Ralph Waldo Emerson
Donuts, hamburgers and quick shipping are easy “doors” to walk through. Once you get your ideal customer in the door, what are you pairing their experience with?
Big brands think about “pairings” all the time. But small businesses and solopreneurs? Not so much. Enter the Coffee + Donuts Method.
The Coffee + Donuts Method is a strategic business decision in which you pair a totally different offering with your core offering in order to a) differentiate your brand, b) deepen the consumer’s experience with your brand and c) keep customers coming back over time.
In order to utilize this method, your business must have 3 things:
- A “door”
- Something you’re known for
- A pairing
For example:
Starbucks
Door: coffee
Known for: convenience + quality
Pairing: mobile app
CorePower Yoga
Door: yoga
Known for: a unique yet consistent point of view
Pairing: teacher training
Red Bull
Door: energy drinks
Known For: adventure
Pairing: Red Bull TV
How could the Coffee + Donuts Method be applied to your small business?
When I’m not at work, my friends and family with small businesses inevitably ask me for online marketing advice. Sometimes marketing is their problem, but most times the way they are positioning themselves is the problem.
Let’s play out a simple example. Let’s say you sell all-natural beauty products.
If we were friends, eventually you’d confess over wine that you are frustrated with marketing your business online. You swear these products are AMAZING. You’ve been posting about sales lately, but no one is even liking your posts, let alone buying.
I would listen, then take a gulp of my wine and tell you that you’re not actually in the beauty products business.
And that’s because what your customers are seeking ISN’T products. They are seeking a lifestyle. They want less toxicity in their life. They want a quicker morning routine. They believe in conscious living but aren’t sure where to start. They want to stand up against unregulated chemicals that harm our health and our children's. They want a more confident day, less decision fatigue and more self-care. They want to be a teeny bit more like Kim K and have their very own beauty expert making personalized recommendations. They want a teacher who can help them master better application techniques. They want to overcome their insecurities. They want their friends and partners to say “wow you look great!” They want to belong to a tribe of people who believe in the same things.
When you think of the natural beauty products business like that, you realize that what you are actually offering is a service not a product. You’re a coach and an expert.
What could this shift in positioning look like? Well, you would spend a lot more of your time offering personal beauty services instead of products and discounts. For example, makeup lessons, makeup collection evaluations and makeup application services. You could offer an online course, run ads for free makeover consults, host a 7 day challenge, serve as resident beauty expert for blogs and events... the list goes on.
Before you burn out “making the donuts” every day, be sure to find that perfect pairing that differentiates your brand, deepens the customer’s experience and keeps people coming back.
Are you a service-based entrepreneur looking to do a gut rehab of your online marketing program this year? If so, join my Marketing Rehab Facebook group. No salesy crap, products or coaching to buy, just community and advice.
This story is published in The Startup, Medium’s largest entrepreneurship publication followed by 276,798+ people.
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