Starbucks

Adam posted a few days ago about the new Starbucks initiative. An excellent post from Todd Defren highlighted some of the ways in which Starbucks will be gaining even greater customer loyalty from something that I bet some execs inside the company felt was a risky operation. To be fair, given its history and background, Starbucks is perhaps more open to this sort of project than many companies. But there would still have been the ‘wise heads’ warning of doom and destruction as people weighed in with complaints and gripes, moans and abuse.

The plan, of course, is not to encourage new customers directly but, as Todd implies, to increase existing customer loyalty. However, a serious by-product of eliciting comments from your best customers will be a raft of suggestions that will make the ‘product’ more appealing to a wider range of people. So, new customers will arrive and become loyal customers. Try mapping that process out in a spreadsheet for ROI.

I’m not sure why but Starbucks here in the UK is a second best to coffee shops like Costa and Caffe Nero. Most of the Starbucks I visit are soulless, the tables full of used cups and plates, the food unappealing, and, worst of all, the coffee generally tastes weak and has little flavour. I’ll gladly walk another half mile to reach a Costa or Caffe Nero. Both Starbucks and Caffe Nero have recently opened in my high street. The Starbucks had a head start of about three months and was packed every day. Since Caffe Nero opened, Starbucks staff walk the street with free samples to try to get customers to return. Tells you something.

However, it’s not all good news for Caffe Nero. Although I was pleased to see them opening locally, simply from the point of view of coffee quality, I was also keen to use their wi-fi service, which I’ve always been able to use ‘free’ as part of my Skype Zones subscription. Disaster struck, however, when I discovered that they have gone over to the BT enemy. No more cheap and cheerful wi-fi. Why they can’t provide free wi-fi, I don’t know. Buy a Fon, for goodness’ sake.

At the moment, there is no way to let Caffe Nero know how I feel. As a loyal customer, this doesn’t exactly make me feel great. Perhaps if I complain to a barista, I’ll get an extra stamp on my wee loyalty card. Mmm, that should do it.

Starbucks may be losing the coffee taste battle but should they install free wi-fi on the back of their social initiative, I may just have to switch to hot chocolate while working.

Perhaps you think you should get your 10th cup of coffee for free, or you would like free Wi-Fi access, or even a free birthday brew… whatever your suggestion, Starbucks want to hear it.

Starbucks have unveiled MyStarbucksIdea.com – a social community site aiming to give their customers a platform to share their ideas and suggestions, vote on the ideas they would most like to see in-store and find out what ideas Starbucks have actually implemented. It seems Starbucks have placed blogging and communicating with their customers at the core of their “New Strategic Initiatives To Transform and Innovate the Customer Experience” er, strategy.

Starbucks CEO Howard Schultz announced this week -

“We engage in millions of conversations with our customers everyday, and those conversations and ideas have helped shape the company we are today,” said Schultz. “With the launch of MyStarbucksIdea, we are extending the Starbucks community online and creating a dynamic forum that enables us to capture and act upon our customers’ best ideas.”

Starbucks seem to be doin’ it right: offering transparency for the process and what they want to do with your ideas, employee-driven content and encouraging customer engagement. If they do ‘act upon’ some of their customers ideas, it looks like Starbucks may succeed in extending the customer conversation on-line.

Regardless of how many of their customers actually choose to engage in this conversation, Starbucks are set to benefit as they gain cost-effective customer feedback, potentially improve their pubic image, and maybe even hear that gem of an idea that makes a difference to their profits.