Then, the holiday season rolled around. To me, the holidays mean Starbucks. And Starbucks, like an all-knowing Santa, came through for me – with Crème Brulee Latte. Woo hoo. Wrapped in sugar and tied off with caffeine, this little gift kept me coming back all season.

Since folks know Starbucks is a treat I don’t always afford myself, I got three gift cards for Christmas. The sticker on one urged me to register it online. There, I found I could combine the cards and carry only one. I could also earn points for my purchases. Woo hoo. I was back in the fold. When I found myself with some spare change in February, I reloaded my Starbucks card.

March rolls around and Starbucks intros their bold coffees. Driven in to try the Pike’s Peak Roast, I get a passport. Try all eight flavors and get a pound of coffee. Woo hoo. I love free stuff.

Today is Free Pastry Day. I go in for the newest bold and a Zucchini Walnut Muffin. I realize I forgot to stamp my passport last week for Italian Roast (I tried it, really). Do they hassle me? No, they happily give me the retroactive sticker. And, do they hassle anyone for not having their Free Pastry coupon? No. In fact, they are offering everyone, coupon or not, a free pastry. It’s a pastry love fest.

And they have samples. Free packets of Via. Tastes of different blends. And more pastry. Woo hoo. I take the Via and make it when I get to the office. It doesn’t hold a candle to the cup I just finished, but I think it might be nice to keep a few packets in my briefcase for when I am in a coffee pinch.

And soon, I’ll be getting my free pound of beans. Woo hoo. That will probably spoil me. I’ll think about buying their beans, maybe just once in a while.

Go back to the beginning, I am a reluctant Starbucks user – one who has left the franchise (more than once actually). They entice me back. Then, they deliver delight. There’s a lot to learn there.

Now, go get your free pastry before they run out.

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?”