There must be over 18,000 different ways to order a beverage at Starbucks. This has helped Starbucks turn coffee, a commodity, into a brand so well embraced that their shops have become destinations for millions of consumers. Coffee is available on nearly every corner, yet people pass by dozens of other shops on their way to Starbucks.

On any given Sunday morning, a customer wants a Hazelnut Signature Hot Chocolate and another customer wants a Tall Decaf Coffee. By Monday afternoon, the same customers may switch to a Grande Iced Black Tea and a Tall Mocha Frappuccino. Starbucks understands that by offering coffee and tea in whatever size, flavor, combination, and variation the consumer wants, they are able to meet picky, fussy, ever-changing customer desires of their target. That’s not easy. That’s a lot of segmentation.

Starbucks responds to customer segments by providing nearly endless product variations. Yet what really matters is not the product, but how having control over the options makes customers feel. The magic of Starbucks lies in making customers feel like the company enjoys providing those small, well-served and tailor-made indulgences to them. And what makes a real impact is that when they call your name and hand you your customized version of one of those 18,000 beverage combinations, it comes with a nod and smile from a friendly barista. They understand that it’s little things like feelings that really make a difference.

This is segmentation at its best. It embraces what really matters; emotional reward. It’s pretty simple: Give people something they can’t get at another coffee shop—make them feel good about themselves. They’ll go out of their way and pay extra to get it. Now there’s a segment. Shall we call them “happy customers?”