Starbucks: Delivering customer service
Executive summary
Starbucks, the world leader coffee store came to realize that they were not properly
using the data, which they had been collecting over the past years. After carefully reviewing
it they came to the conclusion that even though they were growing at a very good pace and
generating a lot of revenues, their customer satisfaction was not what they expected.
Starbucks had their customers divided into three types: unsatisfied (42%), satisfied (37%) and
very satisfied (21%). It is hard to believe that the customer satisfaction would be low when
they were obtaining great results worldwide. Such a high number of unsatisfied clients also
meant a shift on the average type of customer for Starbucks. Their new average profile is a
younger, lower income, and less educated person compared to the older, higher income, and
better educated one in the past. The main concern is that this could lead to a big decrease in
revenues in the long run.
We are going to propose a yearly investment of 40 million dollars in order to improve
the speed of service and therefore the customer satisfaction. We will do so by adding 20 more
labour hours per week in each of the 4500 stores in North America. We strongly believe that
customer satisfaction will increase and we will have many more satisfied and highly satisfied
customers, which are the ones that bring the most profit to the company.
Problem Statement
Despite of Starbucks overwhelming presence, customer’s expectations have recently
not been satisfied. Customers believe that the brand has been focusing primarily on making
money and neglecting the speed-of-service, hence diminishing the customers “Starbucks
experience”.
Situation Analysis
Strengths
Following a multi-pronged approach, Starbucks has become one of the world leading
successful coffee brands, with stores located worldwide1
their market share by maximising customer
Starbucks, the world leader coffee store came to realize that they were not properly
using the data, which they had been collecting over the past years. After carefully reviewing
it they came to the conclusion that even though they were growing at a very good pace and
generating a lot of revenues, their customer satisfaction was not what they expected.
Starbucks had their customers divided into three types: unsatisfied (42%), satisfied (37%) and
very satisfied (21%). It is hard to believe that the customer satisfaction would be low when
they were obtaining great results worldwide. Such a high number of unsatisfied clients also
meant a shift on the average type of customer for Starbucks. Their new average profile is a
younger, lower income, and less educated person compared to the older, higher income, and
better educated one in the past. The main concern is that this could lead to a big decrease in
revenues in the long run.
We are going to propose a yearly investment of 40 million dollars in order to improve
the speed of service and therefore the customer satisfaction. We will do so by adding 20 more
labour hours per week in each of the 4500 stores in North America. We strongly believe that
customer satisfaction will increase and we will have many more satisfied and highly satisfied
customers, which are the ones that bring the most profit to the company.
Problem Statement
Despite of Starbucks overwhelming presence, customer’s expectations have recently
not been satisfied. Customers believe that the brand has been focusing primarily on making
money and neglecting the speed-of-service, hence diminishing the customers “Starbucks
experience”.
Situation Analysis
Strengths
Following a multi-pronged approach, Starbucks has become one of the world leading
successful coffee brands, with stores located worldwide1
their market share by maximising customer