Christine Day, a senior vice president at Starbucks had recently reviewed the latest market research on customer satisfaction and the findings were less than ideal. Upon reading it and doing some research on how to find a solution to this issue, her and her team came up with investing $40 million annually into the companies 4,500 stores across the U.S., which would increase hours weekly at each store by 20 hours. Many at Starbucks are against this because it would cost almost seven cents per share. She is set to present and defend her decision to Howard Schultz and Orin Smith on this investment in 2 days.
In reviewing the latest customer satisfaction surveys it is clear that satisfaction levels have decreased in the last few years. When asked, “How could Starbucks make you feel more liked a valued customer?” The highest response of 34% wanted improvements to customer service, which included friendlier staff, faster service and personal treatment. Beverages accounted for the largest percentage of sales at 77%, with almost half of their customers customizing their drinks. Day stated that “every time we customize, we slow down the service for everyone else”, which puts a tremendous strain on the baristas who are already dealing with a lot of complex drinks. Along with this they introduced the stored-value card (SVC), which many were being given away as gifts, thus introducing many new people to the Starbucks brand. In their customer behavior report they found that an unsatisfied customer averaged 3.9 visits a month compared to a highly satisfied one at 7.2 visits, that is almost double, which corresponds with the average customer life in years, unsatisfied is 1.1 compared to highly satisfied of 8.3, that is 754% increase.
In the latest U.S. retail coffee market reports, the biggest growth was in consumption in drinkers of specialty coffee and was estimated that...