Analysis of Starbucks Delivering Customer Service
At the current moment, Senior VP of Administration Christine Day is contemplating howshe will pitch her plan to improve Starbucks’ customer satisfaction scores. On paper, thecompanies self imposed “snap shot” program of mystery shoppers paints a picture thatthe stores are operating effectively in the areas they feel drive customer satisfaction.However, recent surveys have revealed that the company’s perception of what drivescustomer satisfaction varies from the actual expectations of the customer.
According to Starbucks’ 2010 Annual Report, customer satisfaction scores continue toincrease, and at several points within the report it is mentioned that the key drivers for customer satisfaction are superior customer service/speed, along with partner friendlinessand cleanliness. It is worth noting that the two former factors were the top two responsesfor how Starbucks could improve perceived value, while cleanliness was ranked as themost important attribute for customer satisfaction. It can be perceived that an additionalfocus has been placed on these areas since the article was written as CEO HowardSchultz mentioned them all in his letter to investors.
In order to convince Smith and Schultz of the proposed $40 million plan to increase eachstores allotted sales, Day must tie customer satisfaction to customer loyalty, and place anemphasis on how this will translate to an increase in sales. In the HBR article “Puttingthe Service-Profit Chain to Work,” the authors lay a groundwork for what drivescustomer loyalty and the substantial impact that a lifelong customer can have on the bottom line. They state that increasing employee satisfaction yields an increase inemployee retention/productivity, which improves customer satisfaction, and that
This action might not be possible to undo. Are you sure you want to continue?