STARBUCKS

Delivering
Customer Service
Delivering Customer Service

11th consecutive year of 5%↑store sales growth.

We‟ve demonstrated
that we are close to a
recession proof
product

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 But,
Research says, Starbucks are not meeting
customers expectations in the area of
customer satisfaction

Therefore
Add 20 hours of labor
Improve speed-of-service
increase customer satisfaction
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Company Background

• Italians coffee culture → To Starbucks

Target
•Affluent
•well-educated
•white-collar
•female between the age 25 and 44

Sale
Whole beans & premium priced coffee

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Starbucks’ long-tern vision

Another place
Relax
Enjoy
Themselves
Company Background

 Schultz decided to take the company public.

 Starbucks had spent almost nothing on adverts .

Today,

• Out of 16,000 branches throughout the world

(300 branches in Korea)
Visited by approximately three million customers

• The rate of annual growth is average 30~40%

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The Starbucks Value Proposition

Starbucks‟ brand strategy

“Live Coffee”

Service
Coffee-itself Customer Atmosphere
Intimacy

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Channel of Distribution

Location 4% Sales
 High-traffic & visibility 6%

 Retail center, Office, 13%

University , Hotel,
Airlines, Restaurants
 Online or Mail-order
77%

Broad Distribution Strategy Coffee Beverages

Food Items
Whole-bean
Etc

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Starbucks Partners
 Starbucks employees
were called “Partners”
 Best places to works
ranked 47th.-Fortune
 Satisfaction rate 80~90%
 Encouraged promotion

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Delivering on Service – Partners

Hard Skill Soft Skill

• How to • “Just say Yes”
use the
cash
register
• The last thing we
want to do is win the
• How to argument and lose
mix drinks the customer

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Delivering on Service - Barista

Make beverages to our quality standard.

Customers customized their Drinks

If a customer comes in and wants is their way?

Customize
→ Slow down the service
Put a lot of strain on baristas

Hire more baristas to share the workload

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Measuring Service Performance

Service Cleanliness
Basic Service
Mystery shopper program
Product Speed of
quality service

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Competition

Small-scale specialty coffee chains

Independent specialty coffee chains

Dunkin donuts

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 Objective : Most recognized and
respected brand in the world

Retail Expansion Product Innovation Service Innovation

1/3 coffee
New product
consumption took SVC Card
place outside Launched

Successful Twice the

Without Direct
innovation number of
control - 8 states
„Frappuccino‟ cash customer
Market Research : Trouble Brewing
Starbucks marketing group
• Market research group
• A Category group
• Marketing group

Starbucks make scant use of it data

The predicted results ≠ The actual results

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 Starbucks’ Brand Meaning

Starbucks brand image : Starbucks

Independents Rough edges

•Social and inclusive

• Starbucks cares primarily about
•The trend
•Diverse and intellectual

•Artsy, Liberal making money : on

•Good coffee 61%the run

•Place to meet and move

building more stores
•Lingering encouraged on
: 55%
•Appealing to younger •Convenience oriented

•Intimidating to older •Accessible and consistent

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The changing customer

Starbucks‟ Customer base was Evolving

&

+
Less well-educated Different
Image
+

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Measuring and driving customer satisfaction

Customers are dissatisfied with Starbucks service

-> try to solve the Speed-of-service

Rediscovering the Starbucks Customer

Add an additional 20 hours of labor

Three-minute level service

Build stronger long-term relationship

Improve our customer throughtput

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Starbucks is
most prominent Consumer brands

in the world for all of our focus on Building the brand

& introducing new products
we've simply stopped talking about the customer

we've lost the connection

between satisfying our customers and growing the business.

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Starbucks’ Challenge is to tie
customer satisfaction to the
bottom line.

What evidence do we have?

 “Live Coffee”
Atmosphere

Starbucks doesn't just

Service sell coffee.
Coffee-itself Customer
Intimacy
it sells a coffee
drinking experience.

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 import coffee culture from
italian for customers.
Keep one´s composure

Trying to improve
customer satisfaction

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 Customs wants
Product, Service, Atmosphere
Continuing customer satisfaction
…

I think it is previous thing that Starbucks has

Starbucks 40th Anniversary

YOUR LOGO
 You might notice
something missing from
your coffee cup?!

The words Starbucks coffee

Diversify product
Global ambitions
 The map shows what the
countries Starbucks are in
Starbucks give up „coffee‟ and add to the ambition
THANK YOU!