Services Marketing

Project Report On
Starbucks Customer Feedback Analysis Report

By-
Shivam Talgaonkar (PM2325-B011)
Shubh Mehta (PM2325-B015)
Vidushi Singh (PM2325-B029)
Vishwa Mehta (PM2325-B030)
Yashika Lal (PM2325-B031)

Under the guidance of –

Dr. Sanjeev Arora
Starbucks Customer Feedback Analysis Report

Introduction to Starbucks

Starbucks Corporation, founded in 1971, is a global leader in the coffeehouse industry.

Headquartered in Seattle, Washington, Starbucks operates thousands of stores across the
globe, serving premium-quality coffee, teas, and other beverages, alongside an assortment of
fresh food items. The brand has positioned itself as a premium coffee experience, known for its
inviting ambiance and commitment to quality.

Purpose of the Study

This study was conducted as part of an MBA group project to understand customer satisfaction,
brand loyalty, and switching behavior for Starbucks. Using survey data, we aim to identify the
key drivers of customer satisfaction and areas of improvement for the brand.

Findings

The analysis is based on the survey data collected from Starbucks customers. The following are
the key findings, as per the data and insights derived from the survey:

1. Customers generally rate Starbucks highly on the quality of its coffee and food, as
well as the knowledge and helpfulness of its staff.
For example, multiple respondents rated Starbucks a 4 or 5 out of 5 on questions like:

o "Starbucks consistently delivers the quality of coffee and food I expect."

o "Starbucks staff are knowledgeable about the products they serve."

o "The employees at Starbucks show genuine care and attention toward

customers."

2. However, some customers find Starbucks to be expensive and would consider

switching to a competitor if they offered similar products at a lower price.
Many respondents rated Starbucks a 4 or 5 out of 5 on the question, "If a competitor
offers similar products at a lower price, I would consider switching." Several
respondents commented that they would like Starbucks to lower its prices.

3. Customers appreciate the ambiance of Starbucks but think that the company could
improve service speed and customer traffic flow.
Many respondents rated Starbucks a 4 or 5 out of 5 on the question, "I find the ambiance
of Starbucks superior to its competitors." However, one respondent commented,
"Service speed would be most recommended, and something onto handle customer
traffic!!!"
 4. Most customers feel that Starbucks staff understand their needs and preferences,
and that the services are prompt and efficient.
A majority of respondents rated Starbucks a 4 or 5 out of 5 on questions like:

o "Starbucks staff understand my specific needs and preferences."

o "The service at Starbucks is prompt and efficient."

5. Customers seem to be divided on whether Starbucks' competitors offer equally or

more reliable services.
While some rated "Compared to Starbucks, I find the services at its competitors (e.g.,
Costa Coffee, Dunkin', etc.) to be equally or more reliable" as 4 or 5 out of 5, many
others rated it lower.

6. Customers had various suggestions for improvement, with many mentioning the
need for better pricing, service speed, crowd management, and loyalty programs.

The survey results reflect a nuanced view of customer satisfaction with Starbucks, highlighting
both strengths and areas for improvement. Here's an elaboration on each of the key findings:

1. Customer Satisfaction with Service and Staff

• Strengths: A significant number of customers report high satisfaction with the staff at
Starbucks, particularly in terms of understanding their needs and preferences. This
suggests that Starbucks has succeeded in building a strong customer service culture.
The staff's ability to engage with customers on a personal level is one of the brand's key
differentiators, contributing to its overall positive reputation. Additionally, the
promptness and efficiency of service were also noted as strong points, with many
respondents rating these aspects highly.

• Insight: This positive feedback on staff indicates that Starbucks has effectively trained
its employees to provide a personalized and efficient customer experience. This can be
a competitive advantage, especially when paired with the brand's consistency in
product quality.

2. Perceived Service Reliability vs. Competitors

• Strengths and Challenges: While Starbucks generally scores well in terms of service
reliability, customer opinion is divided when it comes to comparing Starbucks with its
competitors (e.g., Costa Coffee, Dunkin'). Some customers felt that competitors offered
equally or even more reliable services, but others rated this comparison lower. This
suggests a mixed perception, where some loyal Starbucks customers see its service as
superior, while others perceive the service reliability to be comparable or better
elsewhere.

• Insight: This finding underscores the competitive nature of the coffee shop market,
where service reliability is an important but not necessarily unique differentiator for
Starbucks. It may be worth investigating what aspects of service reliability competitors
are excelling at (e.g., consistency, speed, or customer care) to ensure Starbucks
maintains its edge.
3. Suggestions for Improvement

• Pricing, Service Speed, and Traffic Flow: Customers have shared various suggestions
for improvement, with many mentioning that they would like to see better pricing, faster
service, improved crowd management, and enhanced loyalty programs. While
Starbucks is recognized for its high-quality products and service, these areas for
improvement are important for maintaining customer loyalty and satisfaction in the long
term.

• Insight: The issue of pricing seems to be a common theme, with some customers
considering switching to competitors if they offered similar products at a lower cost.
This suggests that while Starbucks’ product quality is well appreciated, the premium
pricing strategy might limit its appeal for some customers, especially those seeking
value for money. Speed of service and customer traffic management are operational
issues that could be addressed through process optimization or technology to improve
the overall customer experience.

4. Customer Perception of Quality and Knowledgeable Staff

• Strengths: Customers consistently rate Starbucks highly for the quality of its coffee and
food, as well as for the knowledge and helpfulness of its staff. This reinforces the
brand’s position as a premium coffee retailer known for consistency in product quality
and strong customer service.

• Insight: Starbucks' focus on training staff to be knowledgeable and attentive helps

foster customer loyalty. The company’s dedication to quality also positions it well in the
market, allowing it to command a premium price for its offerings.

5. Ambiance

• Strengths: Many customers appreciated the ambiance of Starbucks, rating it superior to

that of its competitors. This speaks to the brand’s ability to create an inviting,
comfortable environment that encourages customers to spend time in-store, enhancing
their overall experience.

• Insight: Starbucks has successfully cultivated an atmosphere that attracts customers

looking for a premium coffeehouse experience. This could be leveraged even further to
differentiate the brand, particularly as competitors might focus more on convenience or
affordability.

6. Willingness to Switch to Competitors

• Challenge: Several respondents indicated that they would consider switching to

competitors if they offered similar products at a lower price. This presents a challenge
for Starbucks, which could lose customers to competitors like Dunkin' or Costa Coffee
that may offer more affordable alternatives.

• Insight: While product quality is a strong selling point, Starbucks may need to consider
adjusting its pricing strategy or offering more value-driven options (e.g., bundling, loyalty
rewards) to retain cost-conscious customers. The threat of switching highlights the
importance of maintaining customer satisfaction not just through quality, but also
through perceived value.
Data Visuals of findings

Figure 1 - Average Score

Figure 2 - Tendency to switch for lower price

Figure 3 – Ambiance
Conclusion

The survey presents a mixed but largely positive view of Starbucks. While the company excels in
service, product quality, and customer experience, there are areas that require attention,
especially pricing and operational efficiency. Key takeaways for improvement would include
addressing the concerns about service speed, traffic flow, and pricing. At the same time,
Starbucks can leverage its strengths—personalized service, product quality, and ambiance—to
reinforce customer loyalty and fend off competition. By acting on these insights, Starbucks can
continue to enhance its position in the highly competitive coffee shop market.