Posts Tagged ‘starbucks’

Starbucks Stores Sharing Improvement Plans

Monday, December 14th, 2009

starbucks service photo

Here at Bridge Worldwide, all 260 (and growing) employees are preparing to go through our annual evaluation process and work-plan development for the year ahead. Our belief is that it is important to regularly review how each employee is doing and assess individuals’ strengths and opportunity areas. On the latter, we’re big believers in having open and honest conversations about what people need to improve on, and managers help direct reports create action plans to tackle them. While it can sometimes be a tough conversation to have, we strongly believe this is a reason we have such great employees and have been named one of the Best Small Businesses to Work For in America four years in a row. So I found it interesting to see that Starbucks stores seem to be taking the same approach.

Our President, Jay, sent me this photograph he took during a recent trip to a local Starbucks here in Cincinnati. As you can see, the store is proudly sharing what opportunity areas it is working on this month. It seems to be based on feedback that they have gotten from store visitors, and alternates every month.

There are several things I love about this big idea. First, it shows visitors that the store is listening and actually thankful for the feedback. Second, because it is handwritten and changes every month, visitors can tell that this is not just some big corporate B.S., but rather that the specific store cares and is listening. Third, by writing its opportunity area publicly, Starbucks effectively opens up the dialogue with its customers. I believe people will start giving more open and honest feedback to store employees, which in turn will make them even better.

Finally, this is a tremendous tool for educating and reminding store employees what is important for them to focus on. When they walk in to start working at 5:30 a.m., they are greeted with this same sign—a very vivid reminder of what each individual should focus on.

When he shared this photo, Jay suggested that this goes even further by allowing customers to feel like they are shaping the brand and experience—and that this helps reinforce Starbucks strategy as “the third place” people spend significant time in. After all, if it’s really your space, then you need to have a say in how it appears and functions, just like home and the office.

My buddy Pete Blackshaw recently pointed out that Starbucks claims it has implemented 50 customer suggestions that have come from its MyStarbucksIdea site. Pete literally wrote the book on how to turn great customer service into marketing, and Starbucks hits it out of the park here.

This is a great reminder that Marketing with Meaning works best when you make it personal, in-store, and face to face with the customers who hand you their money every day.

Starbucks Supplies Free Music and Drinks

Monday, July 27th, 2009

Last week I stopped into the Starbucks that I drive by nearly every day on my 20-minute commute to work. It was the first time I had been to this store in several months, and my first Starbucks visit of any kind in at least eight weeks. During that time I’ve been away, Starbucks seems to have been working hard to win back regular customers in a tough economy, and a few small signs of life suggest that this customer at least might be visiting more often.

There were two pleasantly unexpected examples of meaningful marketing that I encountered on this visit. First, when I was handed a receipt for my Vente Coffee with hazelnut, the server said that if I returned to any Starbucks today I could show the receipt and get a free Grande cold drink. This is a smart promotion in that it rewards purchase, plus helps drive in a second visit and perhaps an afternoon-visit habit.

I found the second bonus when I went over to load my cream and sugar choices at the toppings bar. (Is there a better name for that?) There was a small display of cards (see above) offering a Starbucks and iTunes “Pick of the Week” song. In this case it was a new Dave Matthews Band tune called “Write a Song” from their new album, Big Whiskey and the GrooGrux King. All I had to do was redeem a code on iTunes and I was enjoying free music from a band I love. This is actually an ongoing weekly promotion, with a new free song every Tuesday. The idea of free music at Starbucks is particularly new because the stores are infamous for pushing CDs on its visitors at every corner.

These are two small examples of meaningful marketing, but they suggest that the company is working hard to win our business back. It makes me want to stop into Starbucks on my daily drive more often to check out what new surprises the store has brewed up. And that’s exactly what the company is hoping for. Maybe there’s life in Starbucks yet.

Starbucks Takes a Step Waaay Back

Tuesday, June 2nd, 2009

Starbucks used to be the “it” brand in marketing circles. For years we praised its high-quality product, its infinite number of personalized orders, its friendly serving baristas, its freakishly loyal fans, and the company’s status as a “third place” in our lives between home and work. But sales are down, McDonald’s and Dunkin’ Donuts are catching up, the brand is closing stores, and the company is desperate to pump up sales. This is certainly new ground for Starbucks and its CEO and founder, Howard Schultz. But that’s no excuse for this once forward-thinking company to delve into sponsoring a second-tier cable morning show. Alas, it seems the end may be nigh for this once-proud brand.

Yesterday we learned that Starbucks has entered a marketing deal with the MSNBC show Morning Joe with host Joe Scarborough, at a reported investment of “over $10 million.” The show has officially added a Starbucks logo and changed its name to “Morning Joe Brewed by Starbucks.” The hosts suggest that in the future they might broadcast from Starbucks locations. In the video here you can see that everyone is pretty excited about the deal. In a press release, Howard Schultz even claims this is meaningful marketing:

“This relationship is an example of the targeted approach we are taking to reach our customers in a meaningful fashion and highlight our exceptional coffee and values which have built our brand from the beginning.”

I doubt the Morning Joe audience or Starbucks loyalists are very excited. For evidence, take a read of my post last year about the negative reaction to McDonald’s similar sponsorship of the morning newscast at a Las Vegas FOX affiliate. Viewers don’t appreciate the mix between their news content and marketing interruptions. Conservatives who believe MSNBC is too liberal will turn against the brand (note that FOX & Friends has the #1 cable morning news ratings spot), and I doubt MSNBC will be as quick to report in on the brand’s troubles and controversies. There is nothing positive for the viewer such as fewer commercial breaks or better reporting. This is marketing without meaning.

Fans and employees of the brand over at the Starbucks Gossip blog don’t seem to be too thrilled about this deal. Comments include:

How much “in store labor” could $10,000,000 bring for better customer service? only time will tell if this is a good investment along with the $100,000,000 spent on the new ad campaigns.”

“Also…Morning Joe?? Really?? How relevant is that show to the coveted “Gen Y” demographic I thought Starbucks was going after with the next version of its digital strategy?”

“That adds up to 1,000 barista jobs that had to be cut for this worthless programing. I’ll give it one season before it is off the air due to low ratings. No one wants to watch a 3 hour long commercial.”

The remarkably sad story here is that for years Scarborough and crew have been drinking Starbucks on air and raving about the product for free. Now it costs $10 million for the same kind of airtime on a cable news show. I submit to you that this is a microcosm of what the brand is going through now across the nation: People are no longer proud to share their Starbucks passion, and require payment in the form of advertising reminders to keep buying the brand.

And, so, a once-great brand that generated its own marketing via great experiences and word of mouth must pay its way to relevance. I don’t have all of the answers for Starbucks. I certainly prefer efforts such as the My Starbucks Idea call for fan engagement, and the free coffee on election day. These are more meaningful efforts that forge brand relationships and pride, not to mention cost a lot less than $10 million to execute. This is one big step backward for Starbucks.