Customer Relationship Management In Starbucks

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Starbucks Corporation was established in 1971 in Seattle, Washington by three coffee enthusiasts. It started off providing coffee to restaurants and espresso bars. In 1983, Howard Schultz saw the potential to develop a similar coffeehouse in Seattle due to the attractiveness of espresso bars in Milan during his travel there. Inspired by the espresso bars he saw, he persuaded the executives to have Starbucks’ stores serving coffee in cups and everything escalated from there. The company saw a spectacle growth.

In 1933, Starbucks went open and did extremely well in turning daily beverages into a premium merchandise. It green and white logo is broadly recognized by everybody. Today, it is also the world’s leading coffee brand and retailer with
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CRM is frequently achieved using customer loyalty programs and these programs ultimately result in an upsurge in business profits by focusing on customer relationships. An understanding of how to manage customer relations also permits a retailer to gain a competitive advantage over their competitors and thus, Starbucks aims to maintain their CRM to remain as the market leader.

Starbucks recognizes that consumer satisfaction is subjective and therefore it is challenging to measure. So, one way to gain access to customer information is to offer programs such as feedback programs (Appendix A) which enable customers to voice out questions, comments and feedbacks of their opinions on Starbucks. This empowers Starbucks to progress with the help of customer responses consequently resulting in higher level of overall satisfaction.
In addition, Starbucks Loyalty Program has also added on to improve Starbucks CRM. The program is created for customer retention through the three levels – welcome, green and gold. (Appendix B) Starbucks consumers can work their way to a gold status by increasing their purchases which earn them “stars”. These stars can subsequently be redeemed for free food and drinks at
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At the same time, CRM contributes to customer retention and drives a spike in sales growth. CRM can be applied to the business idea as it is a system that is designed to gather customer information across the various channels and point of contacts between the customer and the company. Some of these platforms include the company’s website, social media platforms, emails and marketing collaterals.

CRM can benefit the business with technology and human resources to get access to customer behavior and values. An example of CRM that could be applied to the business idea could be the use of a customer satisfaction survey. By engaging my customer to do a survey, it would enable me to use that database of customer information to help improve the business by offering the exact services and products that customer wants. Also, it allows me to simplify marketing and sales activities such as cross-selling more

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