Starbucks: Delivering Customer Service
STARBUCKS: DELIVERING CUSTOMER SERVICE
Background Case
P.1 According to their data, Starbucks are not always meeting our customers’ expectations in the area of customer satisfaction. They came up with a plan to invest an additional $40 million annually in the company’s 4,500 stores, which would allow each store to add the equivalent of 20 hours of labor a week. The idea is to improve speed of service and thereby increase customer satisfaction.
P.1 Day, Starbucks’ senior vice president of Administration in North America, said, “Do we believe what our customers are telling us about what constitutes ‘excellent’ customer service? And if we deliver it, what will the impact be on our sales and profitability?”
COMPANY BACKGROUND
P.2 The shop specialized in selling whole Arabica beans to a niche market of coffee purists.
P.2 The idea was to create a chain of coffeehouses that would become America 's "third place." At the time, most Americans had two places in their lives-home and work. But I believed that people needed another place, a place where they could go to re1ax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people.
P.2 The company was now serving 20 million unique customers in well over 5,000 stores around the globe and was opening on average three new stores a day. North American marketing primarily consisted of point-of-sale materials and Iocal-store marketing and was far Iess than the industry average.
STARBUCKS VALUE PROPOSITION
P.3 Starbucks ' brand strategy was best captured by its "live coffee" mantra, a phrase that reflected the importance the company attached to keeping the national coffee culture alive. From a retail perspective, this meant creating an "experience" around the consumption of coffee, an experience that people could weave into the fabric of their everyday lives.
P.3 There were three components to this
Background Case
P.1 According to their data, Starbucks are not always meeting our customers’ expectations in the area of customer satisfaction. They came up with a plan to invest an additional $40 million annually in the company’s 4,500 stores, which would allow each store to add the equivalent of 20 hours of labor a week. The idea is to improve speed of service and thereby increase customer satisfaction.
P.1 Day, Starbucks’ senior vice president of Administration in North America, said, “Do we believe what our customers are telling us about what constitutes ‘excellent’ customer service? And if we deliver it, what will the impact be on our sales and profitability?”
COMPANY BACKGROUND
P.2 The shop specialized in selling whole Arabica beans to a niche market of coffee purists.
P.2 The idea was to create a chain of coffeehouses that would become America 's "third place." At the time, most Americans had two places in their lives-home and work. But I believed that people needed another place, a place where they could go to re1ax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people.
P.2 The company was now serving 20 million unique customers in well over 5,000 stores around the globe and was opening on average three new stores a day. North American marketing primarily consisted of point-of-sale materials and Iocal-store marketing and was far Iess than the industry average.
STARBUCKS VALUE PROPOSITION
P.3 Starbucks ' brand strategy was best captured by its "live coffee" mantra, a phrase that reflected the importance the company attached to keeping the national coffee culture alive. From a retail perspective, this meant creating an "experience" around the consumption of coffee, an experience that people could weave into the fabric of their everyday lives.
P.3 There were three components to this