Starbuck's Customer Satisfaction Case

November 7, 2002 To: Howard Shultz and Orin Smith, CEO, Starbucks From: John Smith, Marketing Manager Subject: Customer expiation improvement Introduction In our recent market interrogation we affirm disc overed that at that place is a downward trend in node satisfaction. It appears that over the past ecstasy 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 intimately making money. This number is up from 53% the family before. We must(prenominal) rediscover our customers because growth in our firm decree come from them. The purpose of this memo is to discuss the potential benefits of enthronisation $40 million much per year in our partners. With this investment, we nates add an additional 20 hours of wear out per week, per store. By adding labor hours we go out 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 better people.

They considered Starbucks a trustworthy and high quality brand. Therefore, they were more unstrained to have a bun in the oven a subsidy price. Among our newer customers, who first visited within the past year, this willingness to honorarium has been diminishing. We can pardon this trend by looking at the differen ce in demographics of our newer customers co! mpared with our previous customers. Not only are they younger, but to a fault they are less educated and betide into a depress income level. Our studies show that their satisfaction and trust in us have dropped, and thus are unwilling to ante up our subsidy prices. Although we have seen consistent growth in annual revenues, we must tailor our customer satisfaction strategy to...If you fatality to cop a full essay, order it on our website: OrderEssay.net

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