This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 18 times per month is also a highly satisfied one. Using company data, obtained from customer satisfaction data, this customer spends $4.42 on average on every visit and its average customer life is 8.3 years. Taking this into consideration, then the ideal Starbucks customer brings an average revenue of about $954 per year or $7924 over its lifetime (see Exhibit 2). Using the same customer satisfaction data and assuming that a highly satisfied customer visits a Starbucks coffee store 7.2 times a month, then the average revenue that this customer brings to Starbucks is about $381 per year or $3169 over its lifetime. Ideally, this customer purchases either ready‐made products or easy to make beverages so that it does not take much time for partners to get him out of the service line. Since there is a direct link between customer satisfaction and loyalty which eventually leads to higher profits, then Starbucks should work on raising the satisfaction levels of its current customer base or making them visit its stores more frequently. Based on the rankings of the key attributes that create customer satisfaction, Starbucks should ensure that its stores are kept clean all the time. This can be done by engaging partners into cleaning the stores and even helping clean the table of a customer when they have available time. Starbucks should also place more emphasis in its partners utilizing their soft skills to treat the customers as valuable. Starbucks can also try to promote its stored‐value card (SCV) more. The SVC not only will help its cardholders to experience reduced transaction times which translates to faster service and therefore higher satisfaction, but it also motivates the customer to visit Starbucks more often. At the same time, Starbucks can gather and use the customer‐
transaction data to improve the experience. Another thing that Starbucks can do to ensure that the customer is highly satisfied is to try to deliver on its value proposition. It should make sure that the ser...
View Full Document
- Spring '14