The Starbucks name is synonymous with coffee. Forty millions customers visit each week and the most loyal customer visits their Starbucks store 18 times per month. The Starbucks employee turnover rate is 250 percent lower than the industry average. From a single store to five new stores opening EVERY DAY (one every 5 hours) 365 days per year – Starbucks must be doing something right.
Author Joseph Michelle finds that the success of Starbucks can inspire other businesses or organisations. He highlighted that the phenomenal growth of the company and how a successful business can grow from using a product people enjoy but take for granted, turn the use of the product into a pleasant experience, and get results, which is essentially the secret to Starbucks' many achievements in the world of business.
Five principles that make Starbucks successful:
1. Make it your own: Companies benefit when all employees understand business priorities and look for ways to bring their individual creativity and passion to meet those objectives. All people in the organization feel a true sense of ownership and believe that they have a stake in the success of the company.
Starbucks partners (employees) think about customer service in a way that allows each of them to connect, discover and respond to their customers on a personal level. According to Starbucks Chairman Howard Schultz, “We are not in
the coffee business serving people; we are in the people business serving coffee.”
The people who work in the stores, who do the everyday work you see are called PARTNERS, not workers, not employees. The objective is to get a lower level associate functioning in an entrepreneurial fashion. Somehow Starbucks gets it done. For all of the Starbucks partners, they have to understand and practice the “FIVE WAYS OF BEING".
A) Be Welcoming
B) Be Genuine
C) Be Considerate
D) Be Knowledgeable
E) Be Involved
Be knowledgeable, love what you do, and share your knowledge with others.
2. Everything matters: Not only does everything matter; everyone matters as well .What goes on behind the counter is just as important as what customers see. Cleanliness, atmosphere, a desired product, customer service, are all important and no detail should ever be overlooked.
Paying attention to absolutely every detail gives Starbucks a competitive advantage because it builds intense loyalty among patrons. Michelli mention that “Managers have to constantly put themselves in the shoes of their customers, seeing everything from the other side of the counter”.
There are two must remember quotes that are used in the business:
A) Retail is Detail
B) All Business is Detail
Starbucks management looked upon each store as a billboard for the company and as contributor to building the company brand and image. Starbucks also demonstrates its commitment to social responsibility.
3. Surprise and delight: The most effective events are natural and spontaneous not artificial or forced. Surprise can be as simple as offering a little guidance and then getting out of the way as people search for things that bring them joy.
At Starbucks, it is critical to deliver consistent product and service to delight customers. But on top of consistent quality, Starbucks partners look for ways to surprise and engage consumers in a process of discovery. In an example of the importance of surprise, Starbucks gave out free cups of “Calm” tea on April 15 in anticipation that their customers would be frazzled by the tax deadline.
Another example is the success of Crackerjacks as a snack that people enjoyed that also caught them by surprise when first introduced; Starbucks tries to have new and innovative ways to attract new customers and keep committed customers interested so that the business never becomes static.
4. Embrace resistance: Embracing resistance involves a complex set of skills that enable businesses and individuals to create business and relationship opportunities when they are confronted with criticism. When errors are made, it is important to take direct, take responsibility and follow up with corrective action.
Starbucks rely on good public relations to be rid of problems and criticisms. Instead, Starbucks tries to engage in discussions with its dissenters to convince where it's necessary and change when change is what is necessary. Most companies seem to fight off criticism or complaints - not Starbucks. They look upon criticism as an opportunity to learn from the person doing the criticizing.
Starbucks receives many forms of resistance from communities, international organizations, and at times, customers. Both at the leadership and front line levels, Starbucks has benefited from criticism and utilized it to become stronger and better able to meet the needs of those who share their input.
A case in point is a high level Starbucks executive calling up a person who did a radio show flailing against what he viewed as a lack of consistency in the coffee and service at his local Starbucks. The company took the criticism as an opportunity to learn on a company-wide basis. This is very unusual to say the least. Michelle uses Fair Trade policies as a case in point as to how Starbucks has been criticized and how it has responded using this principle.
5. Leave your mark: Successful business leaders realize that a key to their success is leaving a powerful and positive mark on their communities. By participating in community-based activities, leaders and employees are given the chance to build their leadership skills and grow as teams.
Making money may be a goal of any business, but businesses also have a responsibility to contribute to the greater good. Starbucks does this through financial transparency, involvement in the community, a commitment to making sure that its suppliers are justly paid, and delivering a quality product.
Reach out to entire communities. Listen to individual workers and consumers. Capture growth opportunities in every market. Come up with a practical solution to achieve and sustain success by creating an unique customer relations engagement.
The Starbucks Experience offers a rich mix of frappucino ideas for individuals that want to learn how to apply the espresso secrets behind Starbucks phenomenal vision, creativity, and leadership. It’s the perfect business model for anyone with a taste of ice blended mocha for success.
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