Starbucks 's Customer Service Performance

1622 WordsApr 12, 20157 Pages
Starbucks is known as the dominant specialty-coffee brand in North America. Beginning in 1987 when Howard Schultz, Starbucks chairman, president and chief executive officer, purchased the single-location coffee-house from the original founders, Gerald Baldwin, Gordon Bowker, and Ziev Siegl, he had a vision to create “a place for conversation and a sense of community. A third place between work and home” (Starbucks, 2015). Starbucks created and continues to offer this “third place” through exceptional customer service and inviting environments that provide an experience that becomes part of the customer’s daily life. In 1992 the company completed its initial public offering and by 2002 Starbucks had rapidly expanded from a local Seattle company to an international corporation with 5,886 retail stores on four continents posting its highest net earnings in its history despite the economic downturn during the 1990s. Starbucks’ compiles extensive customer service performance data using a variety of metrics. Customer service performance is primarily evaluated based on service, cleanliness, product quality and speed of service through a mystery shopper program and then rated as basic or legendary. The other mechanism to collect customer service performance data is through Starbucks’ stored value card (SVC). The SVC is similar to a gift card but it offers rewards. The customer must register the card with Starbucks and then every purchase results in reward points. The more the

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