Starbucks loyalty Reigns Harvard Case Solution & Analysis

Introduction

Starbuck has remained enthusiastic in delighting its customers through extensive in-store experience. It has remained a focused player in the market, catering the changing customer needs and demands in order to align itself with what the customer wants.

Recently, the company has initiated the digital strategy as a part of its long-term growth strategy. In doing so, it has offered different digital services such as applications, reward programs and social media engagement and interaction to improve sales to plunge the brand deeper into the mind of customers even in the changing market dynamics.

Though the dual strategy has greatly improved the growth and market share of the company and has given the company a strong long term strategy to invest and grow in the market, however, putting so much emphasis on the digital strategy might affect the other operations of the company, such as in-store services and operation and may divert the attention and emphasis of the employees to the digital customers more than the in-store customers. Moreover, such may also create a tug of war between the two distinct strategies of the company that may lead to ineffective resource management, ultimately disturbing the customer loyalty and delight in the long term.

 

 

 

 

Analysis

Since the company analyzed the growth of digitalization in the market, it adapted the digital strategy to delight the customers. In doing so, it offered the Starbucks app to the customer to make them use the digital platform to order coffee. Such resulted in great success and profits since majority of the customers started using the application for ordering coffee, instead of placing the order through customer services. In order to elevate the offering level and increase the customer satisfaction, the company also introduced online gift service, in which, the customer could send the gift cards or customized coffee covers to their friends, increasing the overall engagement of the customer with the brand.

In addition to this, it also collaborated with the Apple and Network timesto offer customer free online service from thee platforms when they are inside the Starbucks stores, increasing the customer footfall and attraction towards the brands. Moreover, the company also enabled a geo-location system, suggesting the nearest stores to the customers and the ongoing offers. This greatly enabled the company in attracting high customer footfall and continuous engagement with the brand. (Bapat, 2018)

Apart from this, the company also utilized Facebook and Twitter mainly to attract customers and engage with them effectively. In doing so, it launched @Handleforme tweet to order the coffee for friends or own self without getting in a hassle to order from the customer service. This greatly increased the customer attraction and loyalty toward the brand since it offed convenience and efficiency. In addition, it also created customers through Facebook, handling orders through Facebook or active suggestions. Such greatly enabled the company in attracting a high flux of diverged customer groups, increasing the overall sale and thus, profits.

The digital marketing tools such as geo-location application andtheextended use of points greatly helped the companyto engage the customers with the brand.............

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