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Starbuck’s Case Study Notes

Why has Starbucks’ customer satisfaction scores declined?
Starbucks customer satisfaction scores began to decline despite the fact of Starbucks’ overwhelming presence and convenience. There was very little image or product differentiation between Starbucks and the smaller coffee chains. However, there was a significant differentiation between Starbucks and the independent specialty coffeehouses. The brand image of Starbucks also had some rough edges. More customers were beginning to agree with the fact the Starbucks cared primarily about making money and building more stores. Also, despite the high customer snapshot scores customer satisfaction scores were declining. It was believed that there was a …show more content…

Convenience is the next factor leading to customer satisfaction, with 77%. Starbuck’s has done an excellent job with saturating the market. Customers love having a Starbuck’s location on their normal traffic route, therefore not having to drive out of their way for a cup of coffee. Having the drive-thru service has also made a positive impact for the convenience factor. Other factors that ranked highly for customer satisfaction were being treated as a valuable customer (75%) and friendly staff (73%).

How valuable is a highly satisfied customer to Starbucks?
Creating customer loyalty has proved to be the reason behind the bulk of Starbuck’s transactions because the highly satisfied customer is the loyal customer. It is crucial that Starbuck’s maintain customer satisfaction to keep these loyal customers coming back. Without the 21% of customers, averaging eighteen visits a month, Starbuck’s would lose 62% of all its transactions. Starbuck’s has also found that highly satisfied customers have an average ticket price of $4.42, as opposed to a satisfied customer who only spends on average $4.06. Therefore, having a satisfied customer is very valuable to Starbuck’s and its sales. Should Starbucks make the $40 million investment in labor in the stores?
Whether or not Starbucks should invest $40 million into

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