Case Study: Starbucks

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Case One: Starbucks Even with the “No. 1 Best Coffee” Award from Zagat’s Survey of National Chain Restaurants as well as numerous other awards and recognition under their belt, Starbucks remains vulnerable to the ever-changing, ever-demanding needs of their customers (Starbucks Company Recognition). In order to succeed in the service industry, companies must provide impeccable customer service in addition to rewarding their customers through programs and promotional strategies. Currently, Starbucks has reward programs and promotional strategies in place, but they have failed to construct them in a way that fairly and appropriately benefits their customers. In addition, Starbucks’ reward programs are generally unknown by most people…show more content…
As a student who pays over $5 for a single latte every day, I would expect some massive reward! The actual reward program is really just a joke! One free drink every 15 stars (which is really not a lot for loyal customers) and that starts only once you've collected 30 stars!!! That is not to count the ridiculously long delay before you receive the free drink card. It should all be automated on the card. But, then again, the gold card only arrives 6 weeks after you've reached gold. Unacceptable! I am expecting a lot more from this reward program, like real free drinks and food! Not once every $1,000 spent!! This is rather frustrating, I must say” (Thib, View Idea). This post is just one of many on the My Starbucks Idea forum about unhappy customers who expected more reward for the amount that they were purchasing. In response to the frustrated, dissatisfied, and disappointed customers, Starbucks should minimize the requirements for receiving benefits and maximize the incentives and promotional offerings. Strategies to establish these ideas as actual practices are to reduce the amount of stars needed to reach Gold Card status from 30 points to 20 points. In addition, instead of purchasing fifteen drinks to receive one free drink, Starbucks should minimize the free drink requirement to the purchase of ten drinks. These two methods will still bring in profit for Starbucks, but also

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