Focusing on customer experience helps Starbucks rebound


Share on LinkedIn

As you know I’ve been following Starbucks and their 15th Ave experiment, and it looks like the gamble has paid off.

According to the NY Times:

  • Starbucks’ net income was $241.5 million up from $64.3 million in the first quarter last year
  • Revenue climbed 4 percent to $2.7 billion
  • Same-store sales were up 4 percent
  • The company’s stock has nearly tripled to $23.29

But I’m not telling you this just to report Starbucks’ good news. What I wanted to point out was this interesting paragraph from the Times’ story:

Mr. Schultz brought Cliff Burrows, who was managing stores abroad, back to Seattle to run American operations. One of the first discoveries he made talking to customers seemed basic, but had been lost in Starbucks’ push to open stores.

Burrows goes on to say that by talking to customers Starbucks was learning how customer preferences varied by geography allowing Starbucks to better meet customer needs/desires.

What I love about this turnaround is that it nicely exemplifies how focusing on customer experience, listening to what customers want, and fulfilling their needs can directly effect your bottom line. Shultz and Starbucks are re-learning what the 460+ leaders in our groundbreaking research helped us prove some time ago: that customer experience is not a tradeoff to profits; it is the pathway to stronger financial performance.

Republished with author's permission from original post.

Linda Ireland
Linda Ireland is co-owner and partner of Aveus LLC, a global strategy and operational change firm that helps leaders find money in the business performance chain while improving customer experiences. As author of Domino: How to Use Customer Experience to Tip Everything in Your Business toward Better Financial Performance, Linda built on work done at Aveus and aims to deliver real-life, actionable, how-to help for leaders of any organization.


Please use comments to add value to the discussion. Maximum one link to an educational blog post or article. We will NOT PUBLISH brief comments like "good post," comments that mainly promote links, or comments with links to companies, products, or services.

Please enter your comment!
Please enter your name here