Starbucks

Starbucks Case Study

CHALLENGE

To maintain a reputation for extraordinary service, Starbucks wants to better understand and connect with customers. The company allocated a budget of $40 million dollars to spend on any strategy to increase customer satisfaction.

STRATEGY

A customer survey found the Starbucks brand image to be faltering slightly, and a growing perception among costumers of Starbucks primarily focusing on making money and opening new stores. About a third of customers expressed a desire for better service, or, friendlier staff, faster service time and greater “customer intimacy.”

RESULTS

Additional market research showed the average Starbucks customer visits a location at least eight times a month. Roughly 21 percent of customers averaging 18+ visits per month generate 62 percent of transactions. Starbucks needs to focus on creating customer loyalty among current customers to increase the average amount of visits per month.

The customer survey showed customers primarily want clean, convenient stores and a friendly staff. I recommended using some of the $40 million budget to increase the amount of labor in stores in major metropolitan areas and measure the impact before rolling out to other stores. Additionally, I recommend using some of the budget to create a training program for staff at stores in affluent locations to ensure customers always enjoy the Starbucks experience, ultimately creating loyal–and therefore profitable–customers.