Starbucks refocus
Starbucks is changing. Changes are happening at all levels, from the coffee that is being served, to the design of stores, to how the baristas great customers (as recently experience by Cam).
You have to admire what's happening here. Most companies of similar size wouldn't change a thing. It's not like Starbucks is suffering all that much. It suffered a sales downturn of 1%. Given the economy, one could legitimately blame "hard times". The coffee market is competitive but let's face it, Starbuck has a pretty dominant position.
As part of getting back to it's roots, Starbucks is listening to it's customers. They've created a new site where people can make suggestions, vote on other suggestions. The site is all over articles covering the transformation and Starbucks is apparently investing some advertising dollars in getting ideas through paid search. (Note: paid search may not be present the older this post gets). Here are some of the most popular ideas:
- Offer free Wi-fi
- Develop a point card where loyal customers can get free drinks
- Free drinks for birthdays, new coffee introductions, etc.
The proof is in the pudding. All of these ideas involve an investment by Starbucks, essentially giving something away. The activity on the site is reflective of their loyal customer base. If they don't implement some of these ideas and communicate them back to their customers, The whole initiative may backfire.
- Paul Herring
Update: Having a law suit by employees to get back tips is not the best news to have come out during the PR blitz for these changes (whether or not you agree with the lawsuit).
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