Starbucks: Delivering Customer Service

Starbucks: Delivering Customer Service 1. What factors accounted for the extraordinary success of Starbucks in the early 1990’s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? a) Mainly, being able to “sell coffee for (more than)a dollar in a paper cup”, but also developing a whole “coffee culture” around this, through offering: the highest-quality coffee from various regions around the world (controlling most of the supply chain, working directly with growers, overseeing the custom-roasting processes and controlling the distribution to retail stores around the world), “customer intimacy” (creating an uplifting experience every time someone walks through the door”, by recognizing them and/or knowing their drink, and customizing it to their liking), and atmosphere (inviting environment with universal appeal, based on a sense of community, for people to come together). Also, from the “partner’s” perspective, the company developed a culture where the staff was valued and recognized through the provision of health insurance and stock options, as well as, in-house promotions; this contributed to a high partner satisfaction rate and one of the lowest turnover rates. b)”live coffee”, deliver an experience around the consumption of coffee, an experience that people could weave into the fabric of their everyday lives. Become American’s “third place” (a place to relax and enjoy others or to be by themselves), but also go beyond the walls of its own shops and reach other customers through different distribution outlets and joint ventures. c) A highly-quality, trusted brand, known for specialty coffee catering to affluent, white-collar patrons between the ages of 25 and 44. 2. Why have Starbucks’ customer satisfaction scores declined? Has the company’s service declined, or is it simply measuring satisfaction the wrong way? a) From the Starbucks point of view, the scores have not actually declined (based...