Week 7 Blog

Week 7 Blog:

FROM THE NOTES ON THE CASE: Customer Experience/Journey   Review the exhibit from “Competing on Customer Journeys” and the marketing traditional funnel.  Create a workflow of how Starbucks attracts, retains, builds deeper relationships, and ultimately enthusiastically loyal customers who are ambassadors, looking at the digital initiatives and the in-store experience.  What has contributed to or detracted from their “unique customer experience” in every venue?  See Figures 4.3 and 6.2.  Analyze how Merry Mondays worked as a recent promotion (funnel/customer journey.)  If you could create a new promotion for SB, what would it be and what would it do to the funnel/customer journey?

Blog Assignment

1.       On this week’s blog reflect on your team’s strategies/tactics for the Starbuck’s Loyalty case and those of the other teams. How was this case different in the process and outcomes than the Pantene/Nielsen case?

The problem statement was different, the changing of CEO’s was not apparent to us as the problem. We identified that no matter what the issue it was apparent that they keep market share and stay ahead of the curve. Technology is a huge deal for Starbuck’s and so we utilized a timeline to see how and what was implemented and if a significant impact correlated to their increase. Pantene/Nielsen was a market share issue but was it really an issue, it was a product line profit decrease but in general they still showed success within a shift to another one of their popular brands. I think both companies have identified the importance of figuring out a root cause, by doing so they place themselves in a position to enhance themselves in many ways. Promotion and packaging was the issue for Pantene, an item that is an occasional purchase due to the time it takes to utilize the product. Starbuck’s is a quick self indulgence that or can be fleeting moment with an opportunity for multiple purchases by one individuals in a day. More reputation and satisfaction based.

2.       Then, create a promotional calendar of what SB should do (in-store and digitally) and when they should do it--for various target markets using their Customer Relationship Management system (CRM). Also, as discussed in class, they could do a better job of promoting their causes, so integrate that into the calendar.  Remember, their Triple P management philosophy:  The CFO wants to reduce costs while increasing traffic and order size and the number of loyal customers using the app; the sustainability goals are looming to get consumers to alter their cup usage (and other things).  They want to streamline operations to make the line move faster and keep both employees and customers delighted.  Prepare a calendar using the next page as your template.  Put it on your blog and bring a copy to class next week.

Design a Better Loyalty Promotion Plan for Starbucks to Build Profitable Business using CRM

Group 1: Most Loyal/Promoters.  Goal: Increase $ per purchase; Stimulate positive word-of-mouth and gifting; Attract buy more than coffee (food); Convince them to convert to their own mug.  Consider: What would a VIP program do for them? What special perks come to VIP’s? 

Quarter 1: Team up with snap chat to entice people to snap a pic of their favorite beverage in their reusable cups

Quarter 2: Manufacture cups that personalize the experience, like mother’s day, father’s day, etc. Give them a holiday package deal and entice them to purchase a gift card. Adding points for the great gifting idea.

Quarter 3: Work with Groupon to develop an initiative for office teams to compete, stipulation they need to bring their own mugs

Quarter 4: Hold a jingle/ad contest inviting customers and non-customers the opportunity to be a part of the company. The goal will be promotion of “Thinking Green.”

Group 2: Passives/Satisfied/not yet loyal.  Goals: Convert to regular user.  Increase number of times per month come to SB. Offer reasons/incentives to prefer SB brand. Join Loyalty program/download and use app.

Quarter 1: Find a way to enhance their benefits for using the program, merge entire families points making it appear to be a better way to increase points and benefits faster

Quarter 2 Promote a competition by store, the individuals with the most points have a chance to win free coffee for a month/year.

Quarter 3: Offer free merchandise for so many purchases

Quarter 4:

Group 3: Infrequent users of SB who are members of Loyalty Program.  Goals: Increase frequency of visits.  Promote new products and flavor of the month. 

Quarter 1:

Quarter 2:

Quarter 3:

Quarter 4