Marketing Starbucks Case Study
The second column shows whether or not Cataracts uses that particular attribute of customer satisfaction, to measure service performance.
Cleanliness Convenience Treated as a valuable customer Friendly staff Coffee taste/flavor Highest-quality coffee Fast service Appropriate prices Cataracts stores have rated highly on cleanliness and product quality but have not fared well against customer intimacy and fast service, according to a recent survey. However, they don’t seem to be targeting the right metrics to drive customer satisfaction.
For example, customer ratings show that convenience is the second suggest criteria of satisfaction. Though Cataracts has been perceived by consumers as a brand that offers convenience, it does not measure this metric as a performance indicator. Consequently, they may be underestimating the level of customer satisfaction from their brand and service by this omission. Tracking convenience as a performance metric may yield increased customer satisfaction ratings, and present a different picture of the company’s performance.
On the other hand, non-service related areas such as pricing and flavor of the coffee are among the top satisfaction earlier Ana r sucks does not seem to track men Tort measuring service performance. The above instances may indicate evidence of Cataracts using a flawed methodology to measure customer satisfaction, which may significantly skew results for or against a particular metric. As a result, the management may be making important investment / operating decisions based on inaccurate information.
At this point we believe that the data metrics that were used to measure the customer satisfaction by Cataracts till date were flawed and were unable to capture the complete picture. While we agree that the customer satisfaction is a key measure o Cataracts’ success, it would be unwise to spend $40 million without knowing how it would impact the bottom line and whether it would improve the customer satisfaction and decrease the waiting time.
We recommend that the survey to measure the customer satisfaction needs to encompass all the key attributes mentioned by the customers.
Another key measure in our evaluation was whether the improved speed of service would actually result in Cataracts increasing the customer satisfaction and in turn, their revenues. While we are of the opinion that spending $40 million might improve the partner workload, it in no way suggests that ell be able to improve customer satisfaction and improve revenues.
The new customers’ disposable income (acquired in the last one year) is 20% less than the affluent, long term customers and that only 8% newly acquired customers think that the prices charged by Cataracts were fair. An option available to Cataracts may be to introduce new products or evaluate their pricing strategy that targets these new customer demographics. The decision of investing $40 million to increase the workforce should only be taken when sufficiently accurate data has been collected. This would help the management in making an informed and more effective choice.
