ipl-logo

Customer Relationship Management In Starbucks

769 Words4 Pages

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 …show more content…

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 …show more content…

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

Show More
Related

  • Unit 9 M1 Customer Service

    1748 Words  | 7 Pages

    In this assignment i will be explaining how focusing on customers and how providing really good customer service is important in retailing. I will also be looking into the various ways customer service and sales techniques have changed in Tesco. To conclude, i will analyse the impacts made from different customer services and sales techniques in Tesco. As my selected business, i have chosen Tesco.

    Read More

  • Summary Of Alaska Air's Six Sigma Framework

    2023 Words  | 9 Pages

    The customer satisfaction survey is measured through a survey by rating them through satisfaction

    Read More

  • Qlt1 Task 5

    337 Words  | 2 Pages

    Task 5 Customer satisfaction Customer satisfaction is an indication whether the expectations of a customer has been met. Customer satisfaction is an abstract concept where that involves factors like the products quality and quality of service and the locations atmosphere where the products are being purchased, and whether the prices are suitable for the products or service. Businesses uses customer satisfaction survey to find out whether the customers are satisfied with the services and the products of the company. It’s a leading indicator of consumer repurchase intentions and loyalty

    Read More

  • Case Study Of American Airlines Pricing Strategy

    806 Words  | 4 Pages

    INTRODUCTION “The moment you make a mistake in pricing, you 're eating into your reputation or your profits.” - Katharine Paine The above quote from the founder of KDPaine & Partners LLC and The Delahaye Group is quite apt. Pricing is quite often ignored by executives & leads to people not understanding how it can change the competitive game in an industry.

    Read More

  • Swot Analysis Of Cineplex

    804 Words  | 4 Pages

    This loyalty program ensures that consumers will repeatedly return to Cineplex to use their SCENE card and receive the rewards. This concept allows consumers to have brand loyalty as they constantly only attend Cineplex to visit the theatre so they are able to use the points. Cineplex therefore implements brand loyalty by engaging their consumers through a loyalty program and providing them a reason to return back and to use the service one

    Read More

  • Starbucks And Tim Hortons Case Study

    784 Words  | 4 Pages

    Starbucks has a very unique and symbolic logo that people can easily remember it. It features a two-tailed mermaid with long hair. The background of the colour is deep green and the rest of it is white. Whereas, Tim Hortons was established by Canadian hockey player, Tim Horton and the first open was in Hamilton, Canada in 1964. It is now the most beloved and favorite coffee chains in

    Read More

  • Compare And Contrast Starbucks And Tim Hortons

    867 Words  | 4 Pages

    But, it shortly spread all across the world. Starbucks has a very unique and symbolic logo that people can easily remember it. It features a two-tailed mermaid with long hair. The background of the colour is deep green and the rest of it is white. In terms of marketing, it brought their success.

    Read More

  • ALDI: Customer Relationship Management

    1275 Words  | 6 Pages

    Question 1 answer: Customer relationship management is mainly about building relationships with a company’s targeted profitable customers and maintaining that relationship through delivering customer value, as in how a consumer perceives a certain product and values it enough to buy it rather than buying the competitor’s product, and delivering customer satisfaction where the product meets the exact expectations the consumer had actually expected from the product or more, but not less. Companies can build customer relationships at many levels, depending on the nature of the target market (Kotler and Armstrong, 1988). Companies with many low-margin customers can develop basic relationships by which a company doesn’t get to know it’s consumers

    Read More

  • Etsy: Case Review: Customer Relationship Management

    1053 Words  | 5 Pages

    1. Explain to Mrs. Wen what CRM is and how CRM is different from traditional marketing. Customer Relationship Management (CRM) is a term that refers to practices, technologies, and strategies that organizations use to oversee and analyze customer interaction and information. This is done through use of the consumers’ lifecycles, with the objectives of enhancing business relationships with customers, helping with customer retention, and increasing profitability. It is basically a system created by the company to interact with its customers effectively and efficiently.

    Read More

  • The Importance Of Risk Management In Starbucks

    1027 Words  | 5 Pages

    Starbucks is known for its delicious fresh brewed coffee and its dedication to employees, customers and communities. Starbucks is one of the largest companies in USA and it is based in Washington. The company keeps its customers on their toes with new products and loyal customer deals. Every year the company is introducing something new and interesting. This strategy and approach keeps the company on the top and customers coming back for more.

    Read More

  • Starbucks Differentiation Strategy

    1607 Words  | 7 Pages

    Summarize the overall strategy of Starbucks Management in its effort to create and develop a new concept and a rapidly expanding company. The overall goal of Starbucks Management was to create an American version of the Italian coffee bars that Howard Schultz had experienced first-hand in Milan. He believed that Starbucks should function as an important part of the community, as a meeting place for its customers. He wanted Starbucks to become an experience that would differentiate itself from its competitors.

    Read More

  • Starbucks Value Proposition

    1586 Words  | 7 Pages

    Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.

    Read More

  • Starbucks Performance Management

    1523 Words  | 7 Pages

    INTRODUCTION Performance management Performance management is an important part of the company. Companies based on criteria set by the partner for evaluation, so that company manger can knows the performance of employees. Also make the partner aware of their position in the company, pragmatic to complete the work. Background of Starbucks Starbucks is the world’s largest multinational coffee chain.

    Read More

  • Ethical Issues In Starbucks

    831 Words  | 4 Pages

    Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.

    Read More

  • Relationship Between Hospitality And Tourism Industry

    1572 Words  | 7 Pages

    First of all customer means A person who buys goods or services from a shop or business, loyalty means the state or quality of being loyal, faithfulness to commitments or obligations. So Customer loyalty is the key objective of customer relationship management and describes the loyalty, which is established between a customer and companies, persons, products or brands. “Customer loyalty is an essential aspect in any organization whether it is offering a good or providing a service. “Many organizations are looking for various ways to increase their customer loyalty as it has a positive effect on the profitability of the organization.” (Gremler 1996: 171, Abdullah et al. 2000: 826).The individual market segments should be targeted in terms of developing customer loyalty.

    Read More

More about Customer Relationship Management In Starbucks

Open Document