Engagement NOT Advertising = Key to Success
My favorite brand just doesn’t get it. It has recently reported that the average customer traffic at Starbucks Corp.'s U.S. stores fell during the company's fourth quarter for the first time, a sign that the Seattle coffee giant is having difficulty attracting customers as it moves into the holiday season.
What was Starbucks response to declining traffic? Starbucks planned to launch its first national television-advertising campaign. In an interview, Chief Executive Jim Donald called the campaign "a very culturally sensitive, product-driven" effort. He said Starbucks is getting into TV advertising because "as we grow our stores, we're trying to attract more customers who haven’t had the chance to experience Starbucks.
Huh?
I don’t think an ad campaign is what Starbucks needs right now. I have also reduced my visits to Starbucks. Why? Let me list the reasons,
- Employees don’t make an effort to get to know their customers – not even the regular ones.
- Employees don’t welcome you or thank you for your business.
- Employees are not making the same effort in creating that true Starbucks coffee experience – mistakes are happening too often with no apology/compensation for the inconvenience.
- The line-ups are too long for such an expensive coffee experience.
- The stores are not as clean as they used to be – counters are dirty; cups aren’t organized, tables are not cleaned off.
- There isn’t enough comfortable seating – which is part of the whole “home away from home experience.”
So what does all of this mean? I would suggest that Starbucks spend time energizing and engaging its workforce. I would be willing to bet that the engagement level of the employee base is on the decline. Why would I say that – all of what I have listed above is evidence that employees are not fully engaged.
If I was Jim Donald, I would forget about spending millions in an advertising campaign and focus on creating engaged employees who consistently can deliver the experience that all of us customer evangelists came to love and enjoy!
Comments
While I do not frequent Starbucks as often as many of their customers, I have definitely noticed a shift in the way customers are treated over the last few years. They used to value serving customers. Now they only seem to value getting customers out the door (minus the 5 dollars they came in with). They need to take a step back and re-examine what is happening here. They have lost sight of the core values that made their business so successful in the first place, and I do not think they will get back to where they want to be until they realize their mistakes and take action. They can begin by re-allocating the advertising money to employee programs that will help align employee behavior with their old company values.
Posted by: Michael Leff | November 29, 2007 01:39 PM
Michael, we couldn't agree with you more.
Posted by: Judy | November 29, 2007 02:00 PM