After 20 years since the day Starbucks was founded in 1917, it became an international coffee chain. Its motto states that Starbuck’s mission is to inspire and nurture the human spirit by serving the best quality coffee. Due to its customer data dynamics and relationship, understanding and meeting customers’ demands, loyalty, and trust in the company, Starbucks has an excellent company model with good chances to keep a prosperous business.
Starbucks is doubtless a leading brand in the coffee market that efficiently analyzes its customers’ data in an attempt to win their loyalty. For example, one of its strategies is to position 20 or more Starbucks stores in each urban hub to ensure customers’ loyalty and enhance their experience (Sakal, 2018). Having a Starbucks store near does not always secure the customers’ choice of the coffee shop, so the company is required to provide a high-quality product. Positioning itself as a high-quality coffee provider, together with innovative retail activities, is a way to achieve customer satisfaction (Alwaleed et al., 2019). As such, it enables the targeted customers to pay a higher price for a good quality coffee in a well-located nearby coffee shop.
Another important element of a company’s relationship with its customers is trust. To win customers’ trust, avoiding any scandals and negative impacts on the company’s image is required. Maintaining positive public opinion and a good reputation for a large-scale company is challenging yet vital. Starbucks’ history does have a few scandals and possibly threatening situations in terms of reputation; however, they were professionally managed not to cause any serious damage. For example, the case of Rashon Nelson and Donte Robinson being wrongfully arrested in a Starbucks shop (Ozen, 2021). The company’s response and apology were not extremely quick to be released, but they showed empathy and respect, eventually resolving the situation. Displaying the ability to take responsibility and perform corrective actions is a way to win customers’ trust.
Using emotions to make customers relate and associate is another of Starbucks’ successful strategies to win customers’ love. Starbucks employees treat customers like friends; calling out customers’ names when their order is ready makes them feel taken seriously (Liu & Gui, 2017). The peaceful atmosphere of the Starbucks coffee shops is achieved by comfortable chairs, soft lighting, light music, and the smell of coffee enables the customers to feel relaxed (Liu & Gui, 2017). As such, attracting the customers with its quality product and a relaxing atmosphere or a friendly chat ensures their return.
Today, Starbucks can be considered endangered by the current global pandemic situation, lessening the number of customers that go into the shop. However, despite these setbacks, the company has all the chances to keep surviving without adding many changes to its products and services (Lombardi et al., 2021). Due to its customers’ loyalty and trust, Starbucks can continue to prosper. Focusing on decisions for the post-COVID-19 market, the company can increase the intensity of distributing its products.
Starbucks is an excellent organizational model that values its customer, understands and meets their needs and demands. An exceptional work of the marketing department, management, CEO, and employees leaves the customer relaxed and satisfied, and even more importantly, loyal to the company. Due to its customer data dynamics, Starbucks was able to survive through a global pandemic, sustaining its business afloat and maintaining customers’ love and trust.
Alwaleed, N., Al Huwail, N. H., Singh, S., & AlMejhem, A. (2019). A case study on Starbucks. Journal of the Community Development in Asia, 2(2).
Liu, Y., & Gui, P. (2017). An analysis of the problems and countermeasures in the application of experiential marketing – A case study of Starbucks. Advances in Computer Science Research, 76, 378-382.
Lombardi, C. V., Chidiac, N. T., & Record, B. C. (2021). Starbucks coffee corporation’s marketing response to the COVID-19 pandemic. Innovative Marketing, 17(2), 177-188. Web.
Ozen, B. (2021). Case study analysis – Starbucks. Northeastern University.
Sakal, D. V. (2018). Company analysis of Starbucks Corporation.