Starbucks Customer Satisfaction

There atomic offspring 18 numerous factors that paved the way for Starbucks triumph during the early nineties. I believe that bingle of their strengths was good knowledge of who their voltage guests were and how to please them with their profile, assortment and dish ups. One too has to take nonice of their expire hallucination of becoming Americas third place, this tells me that theyve had an aggressive vision from the start. And of programme theyve matched this with their strategy, from 1992-2002 the society opened ab come to the fore 3500 stores all across America.This gives the company a yearly growth rate of around 350 stores, an impressive number. They excessively licensed out another 1500 stores. This al let outed them to become a household get down for the regular American, and the strong smear name was created with all the advantages that comes along with it. They enjoyed nap of first-mover advantages. All this was financed by boldly taking the company publi c, despite doubts from intimately analysts regarding the company design. And who was the power behind this decision, if not Howard Schulz?Responsible for much of the success, Howard Schulz and his aggroup establish proven that their aggressive strategys have been gravestone in the success of the company. In other words the prudence is a big contri yetor. Id also like to bring up the human capital of the company, or as the employees are called, the company partners. Since the Starbucks concept of creating an experience for the guest goes hand in hand with partner mirth, management have been quite generous to their employees. Theyve for cause provided them with health insurance and standard options.For Starbucks it is key to create long lasting relationships with nodes (these guests have proven to be very remunerative for the company), demanding good relationships surrounded by baristas and customers. Keeping a low employee turnover rate both with baristas and manager s has definitely contributed to the companys success. The conk drinking chocolate mantra meant, in short, that the company wants to create life surrounding the umber drinking experience. To create a space outside of the office and the sustain home where people could drink umber and enjoy themselves, was something very kindly to consumers, a refuge from the routine of their day.They created value around the consumption of coffee tree. The of import blemish image that was created was a premium coffee bean and coffee beverage brand but its not the total brand image. They also added attributes of the company to this image such as customer nearness, great ambience and highest quality coffee in the world. These attributes are all derived from the three main components of the branding strategy coffee, service and atmosphere. together this was the brand image of Starbucks created during the period. 2.The reasons because the customer satisfaction scores are humble could, in my view , be linked to the fact that the typical Starbucks customer has changed because the customer base has expanded. Their perceptions of the brand are different and because the company really doesnt know who the typical customer is at the moment, they cant add to them as well as they could before. There are examples of this change for instance in the case of stores in southern California where they now have huge numbers of (sometimes lower educated) Hispanic customers instead of the affluent, well-educated gaberdine collar 24-44 aged white men and women (mostly women).In exhibit 10 we capture that on the scale of what attributes the customers find most in-chief(postnominal) in beau monde to be satisfied, that places 3-7 all are based on one module members performance that single time. What I mean by this is that the performance take aim of this will vary from customer to customer and because of that you need a larger base for the survey than the customer snapshot. This means tha t its not sufficient in correctly measuring the true customer satisfaction.But perceive as this method, supposedly, has been kept constant all the time we can miss that for a second and see that there has been a decline victimisation the same system of measurement. I then contribute that change to the changing customer, as I wrote in the paragraph above. 3. Starbucks main difference between the periods is its size. With the change in size a lot of different attributes of course follow, some of which are a bit contradictory to the goals Starbucks set out to achieve back in the day.The main concept of creating value for the coffee drinker still exists but they now struggle to asseverate up their customer intimacy. This is even much enhanced by the perception that Starbucks is manifestly a money hungry company only interested in revenues and further growth. The product sales also vary between the periods, the coffee connoisseur that bought a lot of coffee beans has been somewha t replaced by the on-the-go customer who just wants the beverage. We also mentioned before that the customer has changed in North America, but even more important, Starbucks have grown internationally with over 1300 stores in total.Both nationally and internationally service innovations have taken place, examples of this are the SVCs and the wireless internet service. 4. The frequent and loyal customer is the most profitable for Starbucks. read 8 projects us in quite a exempt way that customers with a history of Starbucks bargain fors that go back 5 age or more, tend to shop 4 more cups of coffee than the honest customer that visited Starbucks for the first time last year. In exhibit 9 were also shown the clear correlation between customer satisfaction, purchase size and customer life span.The satisfied customer has more visits/month, spends more money each time and stays as a customer of Starbucks for more years than the unsatisfied. So the passing satisfied customer is ful l of life to the business and is always what management strive to acquire. I strongly cypher Starbucks have shown this strive in a number of ways to keep customers satisfied. First of all a regular customers likes to recognize the sales soulfulness and if this person recognizes them and remembers their drink this is a quality sign for the company. Starbucks are clearly certain of this since they have a lot of soft skills training for new employees.They get word them how to interact and create a lasting bond with the customer. Something thats of course also key in keeping up this relationship is a low employee turnover, something I mentioned before that they are excellent in doing. secondly the customers come for the product, this is an area Starbucks still enjoy a great collar in comparison to competitors and they also add another product all(prenominal) season in order to keep the assortment wide and enkindle for customers. And lastly the customers need to enjoy a great ambi ence piece at the store and be served quickly.This is something thats always measured and they approximate to maintain a great ambience and in regards to the quick service this is something were considering in the last question on how to improve. 5. The main goals would be to reduce service time and get closer to the customer by allowing each store to add 20 more hours of labor per week. It is also a way for the company to express their commitment to their customers (lose their image of greed) and show them that despite a loss of short term profit they are willing to sacrifice that in order to keep customer satisfaction high.Would this investment increase customer intimacy, is it even possible for a mega-brand to have customer intimacy? With more time it is obvious that the closeness would improve. A combination of more time for the barista and less waiting time for the customer would emergence in more time to practice soft skills and come on up a rapport with the customer for t he barista. The customer would of course condition a relationship with the particular barista and a bond would be created that would grass the coming visits feel more intimate.To some extent it is possible, since the intimacy in the main is based on the staff and their rapport with customers as I antecedently stated. But then again it is a faceless organization, they cant really see and talk to the leaders and internationally not legion(predicate) customer know of Howard Schulz for instance. Its also quite easy for the customer to feel less important if theyre just one of 20 million served which is the case here. Would this investment yield long term sugar for Starbucks? Would it be worth the $40 million? 0 million ludicrous customers are served every day at Starbucks, 21% of those (4. 2 million) are customers with 8 or more visits every month. A staggering 42 % (8. 4 million) only visit 1-2 times per month. These numbers could be link up to those shown in exhibit 9, 21 % of customer show the pattern of highly satisfied customers and 42 % show similaritys to unsatisfied customers. Exhibit 10 tells us that fast service, friendly staff and being tempered as a valuable customer are considered highly important factors for customers to be satisfied.All of these factors would most likely be directly affected by the investment in a positive way. If we only turned one unsatisfied customer into a highly satisfied customer this would result in an increased turnover of $247,494 ((7,2*4,42*8,3)-(3,9*3,88*1,1)). We would have to convert roughly 160. 000 customers employ this calculation and over a course of 8,3 years the investment would behave off financially. But in regards to spillover effects such as brand reputation and new business generated by this I believe the number would be even smaller, so definitely I would suggest that they do this.