STARBUCKSNOT JUST GOOD COFFEE AND

GREAT CUSTOMER SERVICE BUT ALSO THE BEST CUSTOMER

EXPERIENCE

1SAMAN SIDDIQUIE-BBA-IV (B)

2

OBJECTIVE OF THIS PRESENTATION IS TO:

Dispense learning related to our course (Marketing Management) with the help of a real life case scenario and focus on: What happened? How it happened? And, How it was resolved through research and

marketing efforts?

Saman Siddiquie-BBA-IV (B)

3

BRIEF SUMMARY OF THE CASE In 2007, Starbucks’ sales and stock value plunged. Sales

slowed, and financial publications such as Wall Street Journal, FT and BusinessWeek were quick to predict the demise of the company.

Competition from lower priced fast food chains (McDonalds and Dunkin’ Donuts) became a serious threat.

CEO Jim Donald was replaced by Chairman Howard Schultz. According to an interview given to HBR Ideacast Howard

Schultz, CEO of Starbucks said of that time: “I've saved every major story of what was said about us and about me…And so it was a death march of Starbucks' days are numbered, it's best days are behind them, it's no longer relevant. The headlines on Wall Street were, McDonald's will definitely kill Starbucks, how could the board bring Schultz back, he's responsible for all of us”.

It was time for quick, carefully planned and futuristic ACTION!

Saman Siddiquie-BBA-IV (B)

4

COURSE OF ACTION: Research involving multiple constituents was carried

out. Customer related research showed that customers believe Starbucks: Does not care about its customers anymore. Is only interested in making money. Is not preserving its original coffee house experience. Starbucks was losing its brand integrity and was “not true to

itself anymore”

Howard Schultz: “We were growing the company with such speed and aggression that we lost sight of the customer experience”.

“The most important one, of all this, was how do we preserve, and hopefully enhance, the integrity of the only asset we've ever had as a company, our values, our culture, and guiding principles, and a reservoir of trust with our people?” 

Saman Siddiquie-BBA-IV (B)

5

STRATEGY: PRESERVE & ENHANCE

It was time to involve the customer to keep the brand and its feel alive and committed to its original mission “to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time”.

It was time to be cost effective yet uncompromising in the experience.

It was time to go beyond Customer Relationship Management (CRM), it was time for Integrated Marketing (IMC) and Customer Experience Management (CEM).

Saman Siddiquie-BBA-IV (B)

6

INTEGRATED MARKETING COMMUNICATIONS & CEM Integrated Marketing Communications (IMC) is

an approach to brand communications where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brand’s core message. Its goal is to make all aspects of marketing communication such as advertising, sales promotion, public relations direct marketing, online communications and social media work together as a unified force, rather than permitting each to work in isolation, which maximizes their cost effectiveness.

Customer Experience Management (CEM): The goal of customer experience management (CEM) is to move customers from satisfied to loyal and then from loyal to advocate.

Saman Siddiquie-BBA-IV (B)

7

EXAMPLES OF SOME VALUABLE CUSTOMER EXPERIENCE ADDITIONS

In 2008 My Starbucks Idea is launched (http://mystarbucksidea.force.com/ideaHome).

In 2008, the loyalty program is launched for the registered card holders (rewards and perks).

Social Media Integration in Product, Experience and Community Involvement Ideas.

Introducing and advertising customer safety features and modifications to show “Starbucks cares” (E.g.: splash stick)

Rewarding customers for their morning coffee. The Early Bird Application on Apple iPhone (http://www.youtube.com/watch?v=92h50lb5VTQ).

Service improvements: Trying to adopt the under 3 minute rule.

Saman Siddiquie-BBA-IV (B)

8

THE LOYALTY PROGRAM

Saman Siddiquie-BBA-IV (B)

9

REDEEMABLE BIRTHDAY POSTCARD

Saman Siddiquie-BBA-IV (B)

10

SATISFYING CUSTOMERS THROUGH SOCIAL MEDIA

Saman Siddiquie-BBA-IV (B)

11

LISTENING TO AND LEARNING FROM CUSTOMERS

Saman Siddiquie-BBA-IV (B)

12

STARBUCKS CARES

Starbucks introduced splash stick to prevent hot coffee spills

Saman Siddiquie-BBA-IV (B)

13

THANK YOU ANY COMMENTS AND

QUESTIONS?

Saman Siddiquie-BBA-IV (B)

14

REFERENCES

Wikepedia Multiple sources and case studies related to

Starbucks Customer Experience (Marketing Monster, Focus: Customer by Lior Arussy of Stravity Group, The Content Strategist).

Starbucks official website And

Saman Siddiquie-BBA-IV (B)