John DiJulius | Customer Experience Blog

Starbucks’ un-commoditization
September 28, 2011, 12:00 pm
Filed under: Customer Service, John DiJulius | Tags: ,
Making price irrelevant…

Customer Aggravation Index – There is a very interesting article about how companies have figured out a way to track customer aggravation.  It shares how FedEx has pioneered the development of a metric that tracks how many customers they anger on a daily basis and how mad they make them. By holding focus groups with customers, they gathered a long list of things FedEx had done to aggravate them over the years.  Once FedEx narrowed down this list to a reasonable number of problems, they had customers rank the order from 1 to10 with 10 being the most egregious.  It turns out the worst thing FedEx could do was loose a package and never recover it. A minor aggravation rating of a 1 or 2 might be a package that is an hour or two late. Every day, FedEx tracks occurrences of these problems, multiplies the frequency by the severity, and rolls it up into an index that measures customer aggravation levels. It turns out that this index is directly correlated to disloyalty. Many other companies have now adopted tracking the Customer Aggravation Index read entire article.

Onward by Howard Schultz, is an amazing book sharing insight on how Starbucks was forced to Onward by Howard Schultz reinvent itself. Admittedly they became over zealous for same store sales that eventually led to the watering down of the Starbuck’s experience and what some called the commoditization of their brand. Schultz, the company’s CEO, stresses one of the keys to the famous “transformational agenda” was the customer experience in order to win back lost customers.

People come to Starbucks for coffee and human connection. We would put our customers back in the center of the experience by addressing their needs and developing programs that recognize and reward our most loyal customers. In our stores, we would achieve operational excellence, finding new ways to deliver world-class customer service…
When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers-even if just for a few moments. Sure it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Starbucks coffee is exceptional, yes, but emotional connection is our true value proposition.

Craig Russell-Starbucks Proudly serving Starbucks – I have been blessed to work with some amazing companies and executives, where I have probably learned as much as I have shared.  No one fits that more appropriately than Craig Russell, senior vice president for U.S. Store Operations Services for Starbucks.  Craig has one of the sharpest customer service minds I have ever met and was instrumental to the resurgence of Starbucks customer experience. Craig will be sharing about Starbucks journey as one of our amazing keynote presenters at this year’s 2011 Secret Service Summit November 3rd & 4th.

Nearly Sold Out – America’s #1 Customer Service Conference featuring the most amazing lineup of customer service experts and brand executives.  This conference has sold out the last two years, so do not miss your opportunity to bring your management team to the 2011 Secret Service Summit The X Commandments of Customer ServiceNovember 3rd & 4th.

Article about creating a Revolution
A new kind of revolutionary: John DiJulius- the authority on world class customer experience shared some fantastic insights with CHATTERS.

Quote of the week

“I come to think that I am at my best as a leader when I am being challenged or fighting for survival. I’m comfortable with, and in a way enjoy, the rugged, steep ascent. That is my nature. And while I would not want to constantly battle against the odds, the raw feeling of accomplishing something that others did not think possible, or leading people beyond where they thought they could go, is extremely gratifying.”
~Howard Schultz


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~John R. DiJulius III best-selling author, consultant, and keynote speaker, is the President of The DiJulius Group, the leading customer experience consulting firm in the nation. He blogs on customer experience trends and best practices. Learn more about The DiJulius Group or The Secret Service Summit, America’s #1 Customer Service Conference.

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