Top cloud CRM overview. Part 1 - Choosing the right CRM solution
Starbucks CRM case solution
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Transcript of Starbucks CRM case solution
![Page 1: Starbucks CRM case solution](https://reader036.fdocuments.in/reader036/viewer/2022082708/55cf9a0b550346d033a03bf3/html5/thumbnails/1.jpg)
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Starbucks: Delivering
Customer Service
Nidhun ThankachanPGP/16/093CRM Sec A
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1. What factors contributed to the early success of Starbucks?\2. What was the core value proposition of Starbucks?3. Why did the customer satisfaction scores of Starbucks decline?4. How did Starbucks and their customers change over the year?5.Who is the ideal customer from the POV of Starbucks and how will you satisfy her/him?6.Do you recommend making the $40 million investment and why?
Case Questions
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Created a 3rd place-recreational spot of Americans Maintained standards by controlling supply chain Raised $25mn through IPO Targeted specific audience white collar, educated Attracted affluent customer by providing superior service
consistently Large reach- retail outlets, hotels, airports, Kraft foods, Pepsi
Cola and Dreyer’s etc. Selected high-traffic, visibility setting locations Used word of mouth and spent almost nothing on advertising Invested in R&D Lowest employee turnover rate
Factors Contributing to early success
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“Live Coffee” Mantra Use of highest quality coffee beans Created superior customer experience Maintained good ambience in coffee shop upscale yet
inviting environment Maintained ‘customer intimacy’ by
Recognizing the customer Indulging in friendly talk Offering customized drinks
“Just say Yes” policy
Core Value Proposition
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Long waiting period and service time Tension between focus on product quality and customer
interaction Less focus on what the customer needs
Cause for decline of customer satisfaction
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Customer base 70s: niche market of coffee purists and aficionados 80s-90s: shift to affluent white collar patrons 2000s: young college going, lower income bracket patrons
Value proposition Convenient coffee joint coffee on the move Customer perception: Service oriented profit oriented
Product Whole Arabica coffee beans coffee beans+beverages
Beans+beverages+accessories+games+other products (juices, sodas, pastries etc.)
50% rev. by coffee beans (1992) 77% rev. through beverages (2002)
Complex and customized products
Changes in Starbucks and its customers
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A loyal customer Visits store 18+ times a month Spends $4.42 on average on every visit Average life of 8.3 years Prefers ready-made products or easy to make beverages Value of ideal customer: 18*4.42*8.3*12= $7924
How to satisfy them?
Create clean store image and provide convenience of use Improve coffee taste/flavour Create pleasant, upscale environment Treat every customer as a valuable customer Quick, improved services Knowledgeable and friendly staff Offer incentive and loyalty programsThe ideal customers and how to satisfy them
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Yes, they should go for this $40mn investment To make service operations more quick, streamlined
and efficient To increase customer satisfaction levels by decreasing
service time and building long term relationships To commission extensive market research studies to
understand the changing needs of customers today Difference between a satisfied and an unsatisfied
customer is a whopping $172.39 every year
The new investment option?
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{Thank you!