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Personalized experiences are not only found offline but online as well. It is one of the largest retailers in the world and it has figured out a way to take a personal level of service to the masses. The ability for Starbucks to do this should not be understated. It’s not a mom and pop store or your local bookstore. For a large retailer like Starbucks, which serves more than 100 million customers per week, that’s an impressive feat, the ability to greet each and every customer by name.ĭetails matter and at a time where communication is often more generic than personal Starbucks provides a personalized level of service each and every time. That effect is compounded when the Baristas get to know you and greet you without even having to ask you for your name. While personalization is a buzz word for many for Starbucks its old news. While it sounds fairly basic to greet a customer by name, over the next week as you go into various retail establishments take stock of how many times someone asks you for your name. A personalized experience. One of the details you may not think about but is quite powerful is that each and every time you go to Starbucks the Barista greets you, asks for your name and then writes your name on your order. Starbucks has lower employee turnover than many of its competitors allowing it to develop relationships with its customers that have a deeper degree of intimacy.Ģ. When you make meaningful investments in your employees they invest in you.

You have to be willing to fight for what you believe in.” No one will criticize you.’ And I just said, ‘I could cut $300 million out of a lot of things, but do you want to kill the company, and kill the trust in what this company stands for? There is no way I will do it, and if that is what you want us to do, you should sell your stock.’ What I stand for is not just to make money it’s to preserve the integrity of what we have built for 39 years-to look in the mirror and feel like I’ve done something that has meaning and relevancy and is something people are going to respect. He said, ‘you’ve never had more cover to cut health care than you do now. Within this past year I got a call from one of our institutional shareholders. The thought that we would cut that benefit-I couldn’t do it. Speaking about a difficult time in Starbucks’ history in the mid to late 2000s Schultz had this to say about investing in Starbucks’ employees: “our health care costs over the past 12 months were approximately $300 million. Part of Starbucks’ focus on its employees stems from the fact that the father of Howard Schultz, the former CEO of Starbucks, was injured badly while working at his blue-collar job. Schultz’s dad received no health care or worker’s compensation and it ruined his ability to achieve the American dream. That “scarred” Schultz and then motivated him to create a workplace his dad would be proud to work in. This is a feat that not many companies can say they have achieved. A champion of diversity, in 2018 Starbucks achieved gender and race pay equity for all staff in the United States.

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Since 1988, health care has been offered to all full time and part time Starbucks’ employees including coverage for their partners. In 2014 Starbucks introduced a complete tuition reimbursement program for employees located in the United States who worked at least an average of 20 hours per week. Stock options are not the only employee perk.

Even Warren Buffett would be impressed with those returns. Back in the early 1990s Starbucks became the first private employer in the United States to offer both full and part time eligible employees stock options. That means the happier the customer the fatter the employee’s wallet. To put this in perspective, if you had invested $10,000 in Starbuck’s IPO in 1992 that investment would be worth $4 million by 2021. A progressive investment in its employees. If you are curious about how Starbucks provides such a great customer experience consider these five reasons.ġ. She is working for an employer that cares about her and it shows. You may be wondering why your local Starbucks barista smiles so brightly every time they see you. But Starbucks has managed to do this across thousands of stores around the world. Long before it became trendy Starbucks focused on the customer experience. For anyone who has tried to create a compelling experience for their customers, one that makes them continually come back for more, they know it’s not easy.

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