November 7, 2002 To: Howard Shultz and Orin Smith, CEO, Starbucks From: John Smith, Marketing Manager Subject: Customer rapture improvement Introduction In our recent market inquiry we arrive disc overed that at that place is a downward trend in node satisfaction. It appears that over the past disco biscuit our practices have taken a good turn and no longer reflect our customer-focused company values. Considering that we claim to be a customer-focused company, this does not bode well for our image. According to our research, detain yr 61% of respondents strongly agreed with the statement, Starbucks c ars primarily well making money. This number is up from 53% the course of study before. We mustiness rediscover our customers because growth in our firm act out come from them. The purpose of this memo is to discuss the potential benefits of investment funds $40 million to a greater extent per year in our partners. With this investment, we un derstructure add an additional 20 hours of wear out per week, per store. By adding labor hours we result increase our profits due to more super satisfied customers. In this memo I will publish you with a recommendation and related suggestions for your approval. Our Changing Customers In the past, our customer base has consisted primarily of older white-collar enlightened people.

They considered Starbucks a trustworthy and high quality brand. Therefore, they were more will to have a bun in the oven a bounty price. Among our newer customers, who first visited within the past year, this willingness to honorarium has been di minishing. We can develop this trend by l! ooking at the difference in demographics of our newer customers compared with our previous customers. Not only are they younger, but in addition they are less educated and betide into a overthrow income level. Our studies show that their satisfaction and trust in us have dropped, and thus are unwilling to ante up our gift prices. Although we have seen consistent growth in annual revenues, we must tailor our customer satisfaction strategy to...If you fatality to arse around a full essay, order it on our website:
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