Author: Charlie Curnow

Krispy Kreme’s “Day of the Dozens,” just held this year on Thursday, December 12, offers proof that nothing spreads holiday cheer like a sweet deal. And the universal love of something free, according to a report in Forbes.

The annual deal offers a simple holiday delight: buy any dozen doughnuts, and Krispy Kreme will hand you another Original Glazed dozen for free. But for many, this promotion isn’t just a bonus. It’s an opportunity to bring a smile to coworkers, friends or family.

What’s more, the psychology behind these types of “Buy One, Get One” (BOGO) deals runs deep, the Forbes article notes. According to a study published in the Journal of Business Research, free deals make us feel rewarded and valued, turning simple purchases into memorable experiences. Krispy Kreme’s offer captures this spirit perfectly, using the holiday season’s themes of abundance and sharing to make their offer feel extra special.

One key factor is the Zero Price Effect, which suggests that we respond to the cost of “free” differently than we do any other price. The allure of “zero” creates an emotional response that overrides rational decision-making, according to 2007 research by Shampanier, Mazar and Ariely.

Indeed, demand skyrockets when something is free, even what it’s only marginally more valuable than a paid alternative. For indulgent products like Krispy Kreme’s doughnuts, the emotional appeal is especially strong. Such pleasure-driven, “hedonic” treats feel extra rewarding when there’s no price attached.

Adding to this are the effects of loss aversion, a theory developed by the economists Daniel Kahneman and Amos Tversky. This theory holds that people naturally avoid losses more than they seek equivalent gains. It’s also one of the main implications of Prospect Theory. A framework outlined in the duo’s 1979 paper that’s since become the most cited in economics and one of the most cited in psychological sciences.

Overall, the thrill of getting something for free thus easily overshadows the lure of discounts. And you can add to that the principle of reciprocity, the unspoken rule that makes us want to give back when given something.

When Krispy Kreme hands you a free dozen doughnuts, it’s difficult not to want to pay it forward. Whether that’s by picking up another dozen for a friend, sharing your stash or just telling everyone about the deal.

Sounds like a treat in the making for marketers.

Brand idea for Krispy Kreme’s ‘Day of the Dozens’: ‘Sweetness. Better when shared.’

Krispy Kreme could play on the strengths of the “Day of the Dozens” promotion through additional limited-run giveaways of items. Examples of these items could include camping-style “Krispy Kreme Coffee Sharing Pots” for the first few people who take advantage of the promotion at select store locations. Such physical giveaways could have the added benefit of being social media shareable and viral.

Want to capture a consumer’s attention during a digitized contemporary holiday shopping season? Maybe try sending them something in print.

Defying predictions of doom, print catalogs have managed to remain relevant during the current e-commerce era, according to a report in Fast Company. In recent years, retailers have found that they can treat catalogs with fewer pages as a marketing tool. And now include QR and promo codes to entice customers to browse online and complete a purchase.

While no longer carrying an extended inventory of goods, catalogs are still costly to produce and ship, the Fast Company article notes. But they hold their own in value because of growing digital advertising costs. Helping retailers cut through the noise for consumers barraged by multi-format advertisements, industry officials say.

U.S. Postal Service data from December 2021 even showed a 12% year-over-year increase in the number of catalogs mailed that year. Including 300 million during the month of November alone.

In addition, notable e-commerce companies like Amazon and home good supplier Wayfair have started distributing print catalogs in an unlikely twist. In 2018, Amazon began mailing a toy catalog. That also happened to be the same year Sears, which had been mailing an annual Christmas Wish Book since 1993, filed for bankruptcy. And earlier this year, J. Crew relaunched its own glossy catalog.

According to Jonathan Zhang, a professor of marketing at Colorado State University, who was interviewed for the Fast Company article, research shows that thumbing through a catalog leaves a greater impression on consumers.

Even pint-sized presentations can still work, though, because the purpose of catalogs these days is simply to get customers’ attention, according to Zhang. Conserving paper also works better with younger customers who are worried about the holiday season’s impact on the planet.

Another factor hastening the trend toward smaller catalog sizes is postal price increases. The latest round of postage hikes in July 2024 included the category that contains the 8.5-by-11-inch size that used to be ubiquitous in the catalog industry.

Many retailers have responded to postal price increases by reducing the size of catalogs. Which in turn puts them in a lower-cost category, according to American Commerce Marketing Association executive vice president and managing director Paul Miller.

One of the favored new catalog sizes, a “slim jim,” measures 10.5 by 5.5 inches, but there are other size options as well. And some retailers have reduced costs even further by mailing large postcards to consumers.

Lands’ End, for example, is testing new compact formats to supplement its traditional catalogs. In 2024, that included folded glossy brochures and postcards, according to Chief Transformation Officer Angie Rieger.

L.L. Bean was a pioneer of the mail-order catalog after its founder promoted his famous “Maine Hunting Shoe” to hunting license holders from out-of-state in 1912. The outdoor clothing and equipment company, which is based in Freeport, Maine, is sticking to mailing out regular-sized catalogs for now.

And at least for the time being, it sounds like print catalog skeptics can take a hike.

Brand idea for L.L. Bean: ‘Proudly mail-order since 1912.’

L.L. Bean could lean into this trend by, for example, offering limited-run “1912 Mail-Order Editions” of apparel that can only be bought by holders of the print catalog. The print catalog listings could feature QR and promo codes to ensure only holders of a copy can access web order pages that aren’t searchable through the standard L.L. Bean website.

It seems like just about every airline these days wants to be a high-flyer.

Low-cost airlines are going premium, following the rapidly growing household wealth among upper-income people, according to a report in Fast Company.

Frontier Airlines organized its fares into four bundles in May, with buyers of higher-priced tickets getting extras such as priority boarding, more legroom and checked bags. Frontier also dropped ticket-change or cancellation fees except for the cheapest bundle.

Spirit followed in August with similar moves such as blocking middle seats and charging passengers more for the comfort of aisle and window seats. More recently, however, losses, mounting debt and the collapse of merger talks with both Frontier Airlines and JetBlue led Spirit to announce Chapter 11 bankruptcy in November 2024, from which it expects to emerge in early 2025.

JetBlue Airways, which began flying more than 20 years ago as a low-cost carrier, but with amenities, is cutting unprofitable routes and bolstering core markets, including in the Northeast and Florida. As well as delaying deliveries of $3 billion of new planes.

And starting next year, Southwest Airlines will toss out a half-century tradition of “open seating” in which passengers pick their own seats after boarding the plane. That’s after executives said extensive surveying showed 80% of customers preferred an assigned seat, especially among coveted business passengers.

While it’s not clear why demand for premium products and experiences has grown so rapidly, figures on wealth offer one explanation, according to Southwest CEO Robert Jordan, who was quoted in the Fast Company article. The top one-fifth of U.S. households by income have added $35 trillion in wealth since 2019 and holds nearly nine times the wealth of the middle fifth, per Federal Reserve data. Which gives the wealthiest households plenty of money to spend on premium travel.

On the other hand, more crowded planes post-pandemic might also be pushing passengers to spend more to escape a middle seat in the back of the plane.

Whatever the reasons, executives from Delta say they expect sales of premium tickets to surpass the airline’s revenue from main-cabin tickets by 2027. And while Delta’s CEO Ed Bastian says he doesn’t see the “low-end carriers” segment ever disappearing, he also says that upscale moves by ultra-low-cost carriers are having no effect on his airline.

Even though Delta mainly targets upscale travelers, the airline also introduced basic-economy fares a decade ago when discounters emerged as a growing threat to poach some of Delta’s customers.

Which could just show how circular these sorts of patterns really are.

Brand idea for Frontier Airlines: ‘A value however you fly.’

Frontier Airlines could lean into these trends through, for example, “Airport Better Value Guides.” Web and social media content could provide information on the best dining, retail, ground transportation or hotel values in and around Frontier destination airports. Highlighted options could demonstrate a combination of competitive pricing and quality customer experiences. And show a willingness to look beyond obvious choices, to include independent or family-owned businesses, for example.

For many live sports fans and businesses, increasingly, it’s either go big or go home.

Sports arenas are rethinking their premium seating, offering a much wider range of options. And it’s leading to millions more in money made for teams, Forbes reported.

To begin with, the shift does mean fewer traditional suites in many arenas. But the suites that remain are now becoming more customizable and available in more configurations. Including sometimes as many as five different types of suite offerings, in different sizes and featuring different amenities.

The suites are also reaching new levels of opulence, with new spaces at modern stadiums going beyond marble countertops and fancy meals from celebrity chefs. Experiences now often even start outside the actual building with VIP parking or drop-off, and dedicated arena entrances.

Premium customers are also getting access to otherwise restricted areas of stadiums. And in some premium experiences, guests can even fly with teams to games, or get visits from team mascots or legendary retired players. Not to mention purchase limited-edition merchandise, or find other smaller perks such as in-suite ice machines.

In some cases, the suites are meant to elevate an already-desirable location, such as the 50-yard line. But in others they’re helping turn arena dead zones with less-than-ideal sight lines into hot spots.

An increasing emphasis on business-to-business marketing and corporate hospitality is helping fuel this luxury suite trend, according to Forbes. With the Super Bowl and its NFL House members-only hospitality space, among other offerings ranging from cocktail parties to brunches with Hall of Fame players being a major locus for this type of corporate activity.

But teams are currently just as excited about premium seating opportunities at lower price points. Or what some are calling “entry-level premium.”

These offerings, sometimes called “mini suites,” can have a capacity of 10 or 12 rather than the usual 18 to 25. They can also include even smaller semiprivate groups of seats, an increasingly popular offering that can go by many names, including “loge boxes” or “opera boxes.”

Loge tickets are significantly pricier than what teams could command for a regular ticket. Often requiring six-figure leases for a typical season-long or multi-season reservation. But they’ve also opened up opportunities for arenas to reach a whole new type of upmarket customer.

Typical profiles for these customers might include small business owners who want to entertain just a client or two for a sporting event. Or HENRYs, a marketing term meaning “high earner, not rich yet.”

The exact approach of these offerings differs by sport, due at least in part to the wild variance in the number of home games among leagues. With NFL team schedules featuring eight or nine home games per season, for example, and those of MLB teams featuring 81.

But across all leagues, premium offerings still mean a major source of additional money. Leading to $54 million in yearly revenue on average per team in the NFL, $45 million in the NBA, $41 million in the MLB and $35 million for NHL teams, according to the most recent season of Forbes data. Which is an increase of between 14% and 36% over the last pre-pandemic season.

For 15 teams across the four leagues, premium seating revenue during the most recent season actually exceeded general ticket sales. And two teams, the Golden State Warriors, who opened their Chase Center in 2019, and the Los Angeles Kings, who play at Crypto.com Arena, made more from premium seating than from any other revenue stream, including media rights.

The premium spaces also open up additional revenue streams by, for example, giving sponsors another place where their names can get featured.

Which could all chalk up to one more reason for teams to update their arenas regularly, should the trend last.

Right now, sleep seems to be anything but a snore for the hotel industry.

An ongoing boom in “sleep tourism” has created a $640 billion global market that may top $1 billion by 2028, Fast Company reported, referring to findings from an HTF Market Intelligence study. And so far, the trend has been embraced by everyone from luxury boutiques to industry giants like Hilton and Marriott as they seek additional ways to stand apart from short-term rental options.

Park Hyatt properties now offer sleep suites furnished with Bryte smart beds whose AI-powered mattresses are claimed to “unlock restorative sleep,” Fast Company noted. Other offerings from hotels and resorts worldwide include sleep analysis from medical professionals, pillow menus, and special diets and services to help restore the body’s rhythms and help guarantee an exemplary rest. Sleep meditations, trackers and playlists are also offered by discerning hotels around the world.

The idea of sleep has been a focus for the hotel industry more or less since its inception. With the Westin hotel chain’s Heavenly Bed campaign of the late 1990s serving as one example from recent history.

It’s also been a focus for hotel customers. A 2019 JD Power survey found that of the 29% of hotel guests who experienced a “better-than-expected” quality of sleep, 78% said they “definitely will” return to that property and 71% say they “definitely will” return to that brand.

But the Covid-19 pandemic helped kick interest in sleep within the broader culture into overdrive with its stay-home orders, as well as its enhanced focus on wellness according to Harvard professor and researcher Rebecca Robbins, who was interviewed by Fast Company. Together, these dynamics led to an estimated 25 minutes on average of extra sleep for most people during the first few weeks of the pandemic.

The overall result was what Fitt Insider, a wellness industry newsletter, has called more investment in, and spending on, the “sleep stack” across the economy. Including wearables, bedding, apps, therapeutics and other tools to get better rest. But it’s also led to a larger market for sleep tourism.

According to Mark Kovacs, VP of health and performance for Canyon Ranch resorts, treatments and techniques used for training elite athletes have now filtered down to the population at large. Five-night sleep training retreats at Canyon Ranch’s Lenox, Massachusetts location cost as much as $8,800 per person in 2024.

The Grand Wailea resort, a Hilton property in Hawaii, offers wellness rooms with various sleep-optimizing amenities. Including sleep-inducing meals, specialized jet-lag reducing spa treatments and lectures on the science of restfulness, for just over $1,000 a night. Which is roughly $300 more than standard rooms.

All of this does beg a couple questions, though. For example, if hotel guests are so busy getting their eight hours, does that mean they’ll have less time to spend money on pay-per-view? Or the mini fridge?

Better, faster but not necessarily cheaper?

Starbucks CEO Brian Niccol shared more details about the brand’s ongoing turnaround strategy during the company’s latest quarterly conference call, CNBC reported.

Many of the coffee chain’s planned changes are intended to help its stores deliver a custom drink to customers in under four minutes, according to CNBC. Right now, about half of its orders fall within this threshold.

The plans are being unveiled as Starbucks has now reported three straight quarters of declining sales. The company is also planning fewer new locations and renovations in order to free up capital in 2025.

Among the coffee chain’s specific plans are changes to its mobile app ordering experience. In order to help reduce the crowding of counters with mobile app orders, Niccol seeks to improve the accuracy of the app’s timing so people have a better idea of when their drinks will be ready. He also seeks to physically separate mobile order pickups from in-restaurant orders within store locations. And to curtail how much customers can customize drinks.

Niccol, who was previously CEO and chairman of Chipotle until August 2024, says he plans to slim the Starbucks menu to “fewer, better” offerings to help baristas make every drink more consistently. And hopefully make them quicker, as they’ll have fewer drinks to remember.

As a criteria for what to eliminate from its menu, the company says it will look at items that they wouldn’t have offered if the four-minute standard wasn’t already in place.

The coffee chain’s plans also include steps to make its cafes feel more like a “third place” for customers again. Including through the return of ceramic mugs, and of Sharpies markers for writing customer names and other messages on cups instead of printed labels.

Starbucks is also reviewing its store designs with a focus on returning to more comfortable seating and amenities. Newer pickup-only locations could even see design changes to help make them more inviting.

In addition, the company is looking to bring back condiment bars so customers no longer need to ask baristas directly for something as simple as adding milk or sugar to a drip coffee. And it’s dropping extra charges for milk alternatives, which can currently add as much as 10% to the cost of drinks.

From a marketing perspective, the coffee chain also plans to place less emphasis on discounts under its Starbucks Rewards program. These deals-based initiatives are currently seen as “ineffective” according to Niccol, and as overburdening baristas. The chain additionally plans to give baristas more hours and consistent scheduling to help improve staff retention.

And so what’s the upshot of it all? If you miss the good old “third place” days of Starbucks, it looks like there might be a cup with your name Sharpied on it sometime soon.

This Month in History

Grateful Dead, “Nightfall of Diamonds”

October 16, 1989

Meadowlands Arena, East Rutherford, NJ

This double-disc set released in 2001 highlights the Grateful Dead’s final performance of their five show 1989 run at Meadowlands Arena in East Rutherford, NJ. The night of the recordings, October 16, 1989, was guitarist/vocalist Bob Weir’s 42^nd birthday.

The Grateful Dead’s fall tour of 1989 coincided with the release of “Built to Last,” their 13^th studio release. Loosely structured and perpetually evolving set lists during this period allowed the integration of newer tunes with more established songs from the Dead’s 200-plus strong repertoire, AllMusic notes.

This includes “Picasso Moon,” the up-tempo rocker that opens the first set. “Mississippi Half-Step Uptown Toodleoo,” paired with “Feel Like a Stranger,” provides another first-set highlight with some strong ensemble playing. And a pairing of “Let it Grow” with an engaging performance of “Deal” concludes the opening set on the same energetic high on which it began.

A psychedelic rendition of “Dark Star” envelops most of the second set, which ends with the acapella encore “We Bid You Goodnight.”

Over the space of less than 80 minutes, every genre and stylistic approach of the Grateful Dead is uncovered. And put on forceful, reason-tattering display.