Starbucks Case Study

Starbucks Case Study - customers, due to the fact that...

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Over the past few years, Starbucks’ customer satisfaction scores have been steadily declining. This could be due to many unique characteristics of how Starbucks is managed, owned, and operated day-to-day. Starbucks employs over 60,000 partners, comprised of mainly hourly employees. Fortunately turnover is low, meaning that when repeat customers visit their local Starbucks, the partners already know their drink orders, and the customer knows they will be treated well. However, new research shows that a surprising number of customers are actually first time Starbucks guests. This means that partners must focus on gaining their business by providing fast service and pleasant conversation, rather than simply recognizing past guests’ needs. As we know, it takes much more work to develop a new customer than it does to keep an old customer happy. Starbucks was placing too much of an emphasis on the satisfaction level of old
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Unformatted text preview: customers, due to the fact that older research dictated that such a fact caused an increase in customer loyalty. What the older research failed to mention was that 42% of all Starbucks patrons are first-time customers. In order for Starbucks to be successful, it must ensure that customers feel welcomed upon entry into the store on their first visit. If the customer does not feel this way, they will not return, regardless of the quality of the beverage. Starbucks needs to realize that, by publicizing the fact that they make coffee to order, they may be losing out on the business of customers that only want a regular coffee no extra shots of espresso, chai tea, or venti drinking chocolate. If Starbucks can return to servicing the everyman, their satisfaction scores will once again rise, and guests both new and old will feel welcomed once they enter the store....
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This essay was uploaded on 04/14/2008 for the course HF 100 taught by Professor Buchin during the Fall '07 term at BU.

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