Michael Aaron Flicker

Pumpkin Spice Latte was a winner for Starbucks from the first year they launched it.

It took a lot of courage for them as a brand to turn it off.

And you could imagine that if Pumpkin Spice Latte could be bought in May, would it be as exciting?

Thanks so much for having me.

So it's our contention that great brands are led by great strategists, great CEOs, CMOs, and they come up with a way to position the brand in the minds of buyers that's really effective.

Sometimes they may know the behavioral science underpinnings of why that's the case, but many times they just are uniquely good at getting us to feel a certain way and then want to buy a certain product.

Behavioral science helps us understand why that might be, what maybe gave them a leg up that maybe they knew about or maybe they didn't.

The story of Amazon Prime is documented, and his executive leadership team was very worried

that offering free two-day shipping could absolutely be abused by customers and drive massive financial disruption.

They were worried that it could bankrupt the company by giving such a good offer away for one fixed fee.

And so when we talked about some people that just have this amazing insight into humanity, the credit goes to Jeff Bezos who said, I just believe if we give them this offer, it will really

increased their love of Amazon, increased their use of Amazon.

And he was right.

Today, approximately 83% of US households shop on Amazon.

And Amazon Prime shoppers spend, they spend a one-time upfront fee of $139.

And

then wanting to be consistent with having now invested that upfront fee, they are coming back to the brand more and more.

And what the data shows is not only do they come back, they spend more than their non-prime counterparts.

So it's really a win for Amazon to have them made this investment and then come back and shop and spend more because of it.

You know, it's an interesting question.