Following up on Gary’s Free McDonald’s Coffee video, I thought I’d chime in with my perspective on the matter. As you may recall, McDonald’s had a promotion where they were giving away free coffee, hoping to entice over some customers who may have otherwise purchased their daily brew through Starbucks or Tim Hortons.

For the duration of the promotion, it seemed like McDonald’s was doing quite well. Breakfast sales went up, easily recouping the added costs of giving away free coffee. However, now that we find ourselves several weeks out of the promotion, it seems that business has returned to normal and the lineups are just as long as ever at Tim Hortons. Did the promotion fail or is there something more here to be explored?

As far as I can gather, I think it comes down to two very important factors: preference and habit. As noted on my own blog, Tim Hortons coffee is much “lighter” than the darker Arabica roast offered by McDonald’s. I personally prefer the latter, but many others prefer the former. The price of “free” may trump preference temporarily, but it’s unlikely that people will continue to drink something when they know that they like the coffee elsewhere better.

A second related factor is habit. This goes hand in hand with preference. That’s because people who have been going through the Tim Hortons drive-thru for years, drinking that same coffee each and every morning, will have a hard time switching brands and switching drinks. This is similar to the backlash that resulted from “New Coke” when Coca-Cola decided to change its formula. Fans of “Classic Coke” revolted, not because “New Coke” was bad, per se, but rather because it was not the Coke they knew and loved.

In trying to attract customers away from your competitors and into your fold, one of the first things you’ll need to do is to shift their preference, not only breaking that old habit but also forming a new habit that leads to a preference toward your brand and product.