The starbucks of 2002 differs from that of 1992

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The Starbucks of 2002 differs from that of 1992 mostly in its target customer base, as described above. In addition, as Starbucks has grown to such a large size with so many stores and employees, it is harder to provide the customer service they once prided themselves on, what they called “customer intimacy”. Currently, most entry-level Starbucks partners are between the ages of seventeen and twenty-three. These partners are probably not as concerned with remembering regular customers’ names or drink orders, or striking up a good conversation. Also, partners this young most likely do not work full time, so the constant changing of schedules to different hours and time of day would make it harder to build relationships with customers. In the service profit chain, employee satisfaction leads to employee retention, productivity, service quality, and ultimately their satisfaction. This employee productivity and service quality leads to lower costs and more satisfied customers. The ideal Starbucks customer would be much like any ideal customer from a profitability standpoint. We would like the customer to be satisfied enough that he or she would become loyal to Starbucks and this would lead to revenue growth and profitability through repeated purchases, retention, and referrals. Specifically to Starbucks, we would like this customer to be generating the numbers of a “highly satisfied” customer as in Exhibit 9 to maximize profits. Another characteristic of an ideal
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customer would be their tendency to complain about service errors. This would make the stores aware if a service error was affecting multiple customers and if corrected may lead to the complaining customer being more loyal. To ensure this customer is highly satisfied, Starbucks must serve them in the three minute or less rule, strive for customer intimacy as well as provide them with the product quality and ambience that Starbucks became famous for. A highly satisfied customer can be very valuable to Starbucks. Using the data from Exhibit 9, we can approximate how much money a highly satisfied customer will spend at Starbucks during their customer life. A highly satisfied customer will come to Starbucks 7.2 times a month. This is 86.4 times a year. If you multiply this number times the average customer life of a highly satisfied customer, which is 8.3, we get 717.12 visits per highly satisfied customer. Lastly, multiply this number times the average ticket size per visit of highly satisfied
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