Starbuck's Customer Satisfaction Case

November 7, 2002 To: Howard Shultz and Orin Smith, CEO, Starbucks From: John Smith, Marketing Manager Subject: Customer satisfaction improvement Introduction In our recent market interrogation we crap disc overed that at that place is a downwards trend in node satisfaction. It appears that over the past hug drug our practices have taken a good turn and no longer reflect our customer-focused company values. Considering that we claim to be a customer-focused company, this does not bode well for our image. According to our research, detain yr 61% of respondents strongly agreed with the statement, Starbucks c ars primarily almost making money. This number is up from 53% the category before. We must(prenominal) rediscover our customers because growth in our firm arrange come from them. The purpose of this memo is to discuss the potential benefits of investment $40 million to a greater extent per year in our partners. With this investment, we tail add an additional 20 hours of wear out per week, per store. By adding labor hours we leave alone increase our profits due to more super satisfied customers. In this memo I will publish you with a recommendation and related suggestions for your approval. Our Changing Customers In the past, our customer base has consisted primarily of older white-collar enlightened people.

They considered Starbucks a trustworthy and high quality brand. Therefore, they were more volition to have a bun in the oven a insurance support price. Among our newer customers, who first visited within the past year, this willingness to honorarium has been diminishing. We can justify this tr end by looking at the difference in demograp! hics of our newer customers compared with our previous customers. Not only are they younger, but in like manner they are less educated and betide into a lower income level. Our studies show that their satisfaction and trust in us have dropped, and thus are unwilling to ante up our premium prices. Although we have seen consistent growth in annual revenues, we must tailor our customer satisfaction strategy to...If you fatality to reduce a full essay, order it on our website: OrderEssay.net

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