Starbucks: Delivering Customer Service ?

Issues to be addressed:

1. How does Starbucks define customer service? What does Starbucks mean when it talks about “customer intimacy”?

1. Why is customer satisfaction so important to Starbucks? What is the lifetime value in sales revenue of a highly-satisfied customer to Starbucks, compared to a satisfied customer? (Show your calculations in an exhibit.)

1. Why have Starbucks’ customer service scores declined? How are their newer customers different than their original customers and what challenges does this present for Starbuck’s?

1. Should Starbucks make the $40 million investment in labor in the stores? What’s the goal of this investment? How many customers, on average, would each of Starbucks’ 3,496 North American company-operated stores have to convert from SATISFIED to HIGHLY SATISFIED in order to make this investment pay off?

(Show your calculations in an exhibit.) What additional actions would you suggest Starbuck’s might take to improve customer satisfaction?

Your paper should be a maximum of three (3) typed, double-spaced pages in no less than 10 point font. In addition to the three pages of narrative, you may add any exhibits which support and extend your analysis. (These exhibits must be referred to in your narrative, not just tacked onto the end of the paper.) The case write up is due on the date specified in the syllabus.

 
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