Noviembre 28, 2009
In 2002, market research has shown that Starbucks has a gapin meeting its customer’s expectations in terms of customer satisfaction. On interpretation the marketing research data, Christine Day, Senior Vice President concluded that the speed of service wasthe main reason for this decline in customer satisfaction.
The Proposal was to improve the service time such that each order is served within 3 minutes. However, this solution would cost Starbucks 20additional labor hours per week or $40 million per year.
Customers: The demographics of a typical Starbucks customer have changed drastically in the recent years. From Exhibit 8in Starbucks case document newer customers of Starbucks are younger, less well-educated, low income, less frequent visited to the coffeehouse and had very different perceptions.
The overall opinionof Starbucks by new costumers is 25% as compared to the regular customers which stands in 44%.
Exhibit 11 reveals that 34% of the customers would like an improvement in service and Exhibit 10 showsthat the 8 most important factors for customer satisfaction are: a Clean Store, Convenient, Treated as a valuable costumer, Friendly staff, Coffee taste/flavor, Highest-quality coffee, Fast Serviceand appropriate prices.
From Exhibit 9 in the Starbucks case document we can learn that greater customer satisfaction directly results in higher potential sales.
In fact, moving the satisfied andunhappy customer to highly satisfied customer the Starbucks’s revenues can be increased between 15% and 82%, according to Exhibit 9.
Visits | Expenses Avg. | Expenses Total | Increase % |
3.9 | 3.88| 15.132 | |
4.3 | 4.06 | 17.458 | 15% |
7.2 | 4.42 | 31.824 | 82% |
Competition: Starbucks is clearly ahead of its competitors in terms of size of operations and profitability. From Exhibit 6...