Starbucks Delivering Customer Service

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Venes St Ilis Services Marketing FALL 2012 Case 5 Starbucks: Delivering Customer Service What factors accounted for Starbucks’ success in the early 1990s and what was so compelling about its value proposition? What brad images did Starbucks develop during this period? Several factors accounted for the success of Starbucks in its early days. The first factor was their product. Starbucks was one of the first to create a product with such distinction and the product was sold both in the cafes as well as grocery chains. Another factor was the excellent customer service that they provided and finally, the atmosphere. People came to the café to buy coffee however; they were also drawn in by the atmosphere. Starbucks success rest on the facts that they: Started with a good business concept, thought big, thought outside of the box and partnered smart The most compelling thing about Starbucks value proposition was that Starbucks wanted to create an experience for customers that they could “weave into the fabric of their everyday lives”. This was important for top managers at Starbucks because instead of just having customers come in and out for a cup of coffee they can also think of Starbucks as a place to relax and meet with friends. In my opinion Starbucks was on the right track by creating this atmosphere as they have gained and retained many customers in this manner and at this time there are not many other cafes that can compare. The image that Starbucks created was employees are treated as partners and customer service is a very important factor. In addition to employee partnership Starbucks created an image of dominating the specialty coffee market. Why have Starbucks’ customer satisfaction scores declined? Has the company’s service declined or is it simply measuring satisfaction the wrong way? Starbucks customer satisfaction

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