12 Hot Business Lessons
From Starbucks
CEO Howard Schultz
Here's
what you can learn from Americas fastest-growing coffee brand.
In
1971, a coffeehouse opened in Seattle's historic Pike Place Market.
Named after Captain Ahab's first mate
in
Moby Dick, this little coffeehouse has become the world's largest
coffeehouse in the world.
With
more than 21,000 stores in 65 countries, Starbucks is one of the
fastest-growing companies in America. For example, the company
skyrocketed from 425 stores in 1194 to 19,767 by 2013. And, there's
no reason to believe that Starbucks has any plans of slowing own. So,
how exactly did the brand experience such phenomenal growth?
Here
are 12 of the most important lessons that we can learn from Starbucks
and its fearless leade
Howard
Schultz.
1. Have a Mission
Starbucks
has one simplemission: To
inspire and nurture the human spirit--one person, one cup and one
neighborhood at a time.
That
mission statement has served the company for over the last four
decades, because Starbucks is more than just a coffeehouse. It's
become an escape for anyone needing a break from the daily grind.
It's become a centralized meeting location for friends to catch-up
and business people to have meetings.
Starbucks
wanted to provide people--no matter age, profession or location--with
a unique experience; the coffeehouse as a place to relax, work, or
socialize.
2. Ask Your Customers Questions
If
you've ever been to a Starbucks for the first time, or even if it's
one that's not your regular location, you may have noticed employees
will sometimes ask what you're looking for. This is a simple and
effective technique when it comes to customer service--and one that
marketers should utilize.
When
you know what your customers are looking for, you can assist them
with making a final marketing decision.
3. Know Your Customers and Employees
Speaking
of knowing your customers, if you're a regular at Starbucks, then you
are already aware that your favorite barista knows your name and
order. This little personal touch is important to remember because
giving customers this kind of memorable and personal experience is
one the most important triggers that can be used to make customers
happy.
Also,
know your employees. You never know what they can bring to the table.
The signature Frappucino, for example, was invented by a Starbucks
line employee named Dina Campion.
4. Be Innovative
Starbucks
does its best to remain true to its roots, but the company is also
extremely innovative. For example, realizing that customers wanted to
spend more time at their locations, Starbucks began offering free
wbste Wi-Fi in 2010. Realizing that customers wanted their products
at home, Starbucks has embraced instant coffee with the Via
instant-coffee brand and its own single-serve brewing systems with
the Verismo Machines. The company even allows customers to pay for
products via an iPhone app and was one of the first companies to go
mobile.
So
keep in mind--while it's important to stay true to your roots, it's
also important to be adaptable and welcome change.
5. Take Responsibility
Has
your order ever been wrong at Starbucks? If so, what happened? You
received your correct order without any question. Employees are
trained to deliver the best experience possible for their
customers--every time. That means that
taking
responsibilityfor
any slip-ups.
We
all make mistakes. What makes the difference, however, is owning up
to those mistakes and addressing them in a professional and timely
manner.
6. Go Against the Grain
You've
probably noticed there's a Starbucks on just about every corner.
That's not a stereotype either. Starbucks did this intentionally
through clustering.
Instead of focusing on traffic patterns, location of competition or
even demographics, Starbucks blankets entire areas. While there were
fears that this would lead to self-cannibalization, this unorthodox
move has helped the company dominate the market share by blocking out
the competition.
Sometimes
you just have togo
against the grain
and
do something that other companies aren't doing. It may be risky, but
it can also be beneficial for your company.
7. Embrace Social Media
Most
of us are aware that social media has a big role to play in the
promotion and marketing of a company, but how can you perfect your
social media presence? Starbucks
has used Instagram
to
tell its brand story. The image-based social network has been used by
the company to not only showcase products, but also capture the
brand's message of passion by sharing images of customers enjoying
life or creating clever images.
Having
a presence on social media is vital, but the most important thing to
remember is to find the right platform for your brand and make sure
to engage with your audience.
8. Everything Matters
When
accountants informed the company that they could save money by
switching from two-ply to one-ply toilet paper, the idea was turned
down by the company. Starbucks felt that having one-ply toilet paper
wouldn't work with the brand's image as "affordable luxury"
or justify spending over $4 for a cup of coffee.
9. Chose the Right Partners
Over
the years Starbucks has selected a number of partnerships to help
expand its business. For example, the company partnered with Barnes &
Noble in 1993 to serve its products at Barnes & Noble locations.
What goes better with a book than a cup of good coffee?
A
more recent partnership was with Apple. Since 2006 Starbucks and
Apple have worked together to provide customers with a "coffeehouse
experience". This partnership allowed people to purchase songs
on iTunes that they have heard in Starbucks.
The
company also works with a number
of organizations
that
help serve and advance communities. This includes everything from the
American Red Cross to Global Green USA to Save the Children.
Whether
it's teaming up with complimentary businesses or nonprofits,
partnering up is a great way to introduce your brand to new markets
effectively and quickly.
10. Be Consistent
Consistency
is one of best ways to create loyal repeat customers. If you deliver
top-notch customer service and quality products or services, they
will always expect that from your company. Starbucks has done an
excellent job of offering customers consistent products and services.
If you work into a Starbucks in New York City for a mocha latte, you
can order that exact drink in Seattle and expect the same product.
11. Fits in With the Region
While
having a consistent product is important, Starbucks also does a great
job of fitting in with the local environment. This means that while
you can expect the same latte from coast to coast, the actual
location will vary depending on the region. For example, here's what
Starbucks at Disney California Adventure
appears
like. It fits in nicely and looks completely different from what you
would find in San Francisco or Philadelphia. As Mark Tewart points
out, Starbucks gives the impression that it's more of a local or
regional brand than a national brand--which meshes perfectly with the
brand's mission statement.
12. Have the Right Leaders
It's
hard to believe now, but back in 2007 Starbucks was in trouble. While
as Chairman, Howard Schultz, he noted that the company had lost its
way.. "The pursuit of profit became our reason for being, and
that's not the reason that Starbucks is in business...we're in the
business of exceeding the expectations of our customers."
So,
what did Schultz do? He took 10,000 managers to New Orleans for a
four-day conference to help inspire and challenge their employees.
The result? 10,000 left the conference with "a tidal wave of
energy."By
2013, Starbucks reported record profits.
Having
the right leader(s) to rally the troops is another proven tactic in
every successful business.
BY
JOHN
RAMPTON
http://www.inc.com/john-rampton/starbucks-nation-12-lessons-learned-from-america-s-fastest-growing-company.html?cid=em01016week48d
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