Starbucks, Social Media and the     Starbucks, Social Media and the     Customer Experience RenewalSocial media helped Sta...
Customer Experience and User Experience Defined Customer Experience (CX) ©Jeofrey Bean and Sean Van Tyne All interactions ...
Starbucks streak was really over.  For 15 consecutive years Starbucks top line growth reached at least 20% each year. It w...
Employees, shareholders, and customers of Starbucks   would be hard pressed to imagine in the midst of Starbuck’s   free f...
Central to the Starbucks experience strategy was to     make each store a customer’s ‘favorite third place’ after     home...
Computers and Coffee:  The Dell Factor     Computers and Coffee: The Dell Factor     Dell Hell – Jeff Jarvis and Michael D...
Concerns and Internal DebateWhy host discussions?  Why not?People will have customer experiences with your company, its Pe...
“The experience for visitors to the site needed to be consistent with the Starbucks experience.  It needed to be as fun as...
This new social technology platform would not have a blog or, This new social technology platform would not have a blog or...
On MyStarbucksIdea.comOn MyStarbucksIdea com     Ideas are categorized into products, experience and      involvement idea... October 3, 2011     The markings of the status of people’s                 g            ... October 3, 2011Jeofrey Bean                                            12
By March 2008 was ready to show Within two months, 41,000 idea submissions and voting, customers would...
2009 ‐ True transformation: Improve Customer Experience, Differentiate and InnovateThe new offers and loyalty card program...
What should an effective social media strategy begin with?The best experience companies large and small base effective The...
Bean’s ‐ As of the end of May 2011, over 250,000 people, signed up, 109,000 ideas have been poste...
Jeofrey BeanJeofrey Bean is the author of the book ‘The Customer Experience Revolution’ with Sean Van Tyne.  He is an enga...
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Starbucks, Social Media and the Starbucks, Social Media and the  Customer Experience Renewal by Jeofrey Bean


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Based on Jeof's upcoming book about Customer Experience companies and how they change products, markets, and people's lives (Published by Brigantine Media). Social media is an important part of product development and customer experience. Why not use it to your advantage? We'll discuss-

-From Buyer Beware to Supplier Beware -- social media has given tremendous power to the buyer.
- How Starbucks first used social media to reinvent its customer experience helping the company turnaround.
- Where did Starbucks' idea for using social media come from?
- How did the customer experience change for the better?
- What do the lessons from Starbucks mean for companies small and large?
- Avoid the most common and costly mistakes made in using social media
- Why a presence on Facebook or Twitter does not always mean effective use of social media
- What should an effective social media strategy begin with?

Join Jeofrey Bean at ProductCamp SoCal 2011 for this engaging and practical discussion about how the best companies, large and small, use social media effectively to build meaningful relationships and contribute to the bottom line.

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Starbucks, Social Media and the Starbucks, Social Media and the  Customer Experience Renewal by Jeofrey Bean

  1. 1. Starbucks, Social Media and the  Starbucks, Social Media and the Customer Experience RenewalSocial media helped Starbucks turnaround and what it means for youSocial media helped Starbucks turnaround and what it means for you October 15, 2011 Jeofrey Bean Based on a chapter from the upcoming book                           The Customer Experience Revolution          Th C t E i R l ti by Jeofrey Bean and Sean Van Tyne Published by Brigantine Media CXR l ti
  2. 2. Customer Experience and User Experience Defined Customer Experience (CX) ©Jeofrey Bean and Sean Van Tyne All interactions people have with or about a company’s messages, people, processes, products or services from potential customer to customer to advocate. User Experience (UX) A person’s experience directly interacting with a company s company’s products or services The proof point that services. promises made are true. Social Media Takes the experience from buyer beware to supplier bewareJeofrey Bean 2
  3. 3. Starbucks streak was really over.  For 15 consecutive years Starbucks top line growth reached at least 20% each year. It was 2008, the year that the company lost over 50% of its operating income and its operating margins.  (2008 annual report. Form 10‐K)  Jeofrey Bean 3
  4. 4. Employees, shareholders, and customers of Starbucks  would be hard pressed to imagine in the midst of Starbuck’s  free fall in 2008 that in less than 12 months Starbucks  f f ll h l h h b k would be headed for sustainable growth again while the  rest of the world searched for the bottom of the recession.  But that is exactly what happened.Jeofrey Bean 4
  5. 5. Central to the Starbucks experience strategy was to  make each store a customer’s ‘favorite third place’ after  home and work 2007 was the first time ever that customer traffic at  2007 was the first time ever that customer traffic at Starbucks stores declined in the U.S.  The experiences customers were having with Starbucks  The experiences customers were having with Starbucks were far less engaging than everJeofrey Bean 5
  6. 6. Computers and Coffee:  The Dell Factor Computers and Coffee: The Dell Factor Dell Hell – Jeff Jarvis and Michael Dell Dell quickly became an innovator with social media Dell quickly became an innovator with social media Direct2Dell BLOG in February 2007 Dell and Schultz exchanged ideas Both returned for turnarounds Starbucks version would encourage customers to submit  ideas   The main job was to host and inspire discussions  based on ideas that customers submittedJeofrey Bean 6
  7. 7. Concerns and Internal DebateWhy host discussions?  Why not?People will have customer experiences with your company, its People will have customer experiences with your company itsmessages, products or services regardless of whether you are hosting it or not  [Sean Van Tyne, Corporate UX Maturity: A Model for Organizations, User Experience Magazine, Volume 9, Issue 1, 2010] Volume 9 Issue 1 2010]How would an appropriate and genuine connection with people be made with social media? Few companies have the resources to dedicate people…Allow the community to vote on which posts to make a high Allow the community to vote on which posts to make a highpriority. People could vote on each others’ ideas. The site would still require monitors to do this effectively Jeofrey Bean 7
  8. 8. “The experience for visitors to the site needed to be consistent with the Starbucks experience.  It needed to be as fun as it was engaging and most of all encourage more customers to share engaging and most of all encourage more customers to sharetheir thoughts and visit Starbucks stores.”When Schultz returned as CEO in January 2008When Schultz returned as CEO in January 2008“We started to lose sight of our focus on the customer and our commitment to continually and creatively enhance the Starbucks Experience.” (Starbucks 2007 Annual Report)  The Starbucks experience and creating sustainable value would be the focus from that point on. ld b h f f h i Jeofrey Bean 8
  9. 9. This new social technology platform would not have a blog or, This new social technology platform would not have a blog orat first, not be linked with Facebook or Twitter.It was a deliberate effort to avoid the typical social media approach of having 12 Facebook pages and 15 Twitter accounts.  They wanted desperately to avoid the most common and costly mistake made in using social media which was . . . costly mistake made in using social media which wasIt would be a live feed of everything being posted including ideas, what other people’s ideas have been, ideas and actions taken by Starbucks. [Matthew Guiste Global Social Media Director –Starbucks, Open Innovation & Social Media. Sep 29, 2010 ] Jeofrey Bean 9
  10. 10. On MyStarbucksIdea.comOn MyStarbucksIdea com Ideas are categorized into products, experience and  involvement ideas There are displays for Ideas so far, leader board, Ideas in  p y , , Action, Most Recent Ideas Jeofrey Bean 10
  11. 11. October 3, 2011 The markings of the status of people’s  g p p submissions are important feedback for  personalizing the experience people have with  The status includes Under  MyStarbucksIdea com The status includes Under Review, Reviewed, In the Works and Launched. Jeofrey Bean 11
  12. 12. October 3, 2011Jeofrey Bean 12
  13. 13. By March 2008 was ready to show Within two months, 41,000 idea submissions and voting, customers would help reshape and energize the experience Two outstanding points, that would become critical to Starbucks turnaround‐ 1 Customers wanted more for their money  2  They wanted to be rewarded for their frequent  purchases.  (Onward, Howard Schultz w/Joanne Gordon, ©2011 Rodale Press,  p142, 166)   p142 166)Schultz carried these forward as the company remade its products, services and the experienceproducts services and the experienceJeofrey Bean 13
  14. 14. 2009 ‐ True transformation: Improve Customer Experience, Differentiate and InnovateThe new offers and loyalty card program based on the people’s ideas from were helping to lead the ideas from MyStarBucksIdea com were helping to lead thetransformation to revitalize the customer experience and profitability  (Starbucks 2009 Annual Report) Jeofrey Bean 14
  15. 15. What should an effective social media strategy begin with?The best experience companies large and small base effective The best experience companies large and small base effectivesocial media strategies on developing meaningful customer relationships, giving people valuable experiences and important contributions to the bottom line. t ib ti t th b tt liThey apply what they learn from social media to many aspects of their business including product, service and experience development. Jeofrey Bean 15
  16. 16. Bean’s ‐ As of the end of May 2011, over 250,000 people, signed up, 109,000 ideas have been posted and over1 million votes.Facebook and Twitter were added later was the first step to connect with customers outside the stores.  After that, the company to connect with customers outside the stores After that the companystrategically added Facebook and Twitter.  The company uses Twitter primarily by following what gets posted about Starbucks as a way to understand reaction to Starbucks.  There are exceptions when Starbucks does the Tweets, but it is not normally how the company uses TwitterGuiste comments on this “We let everyone else do that for us.  It’s kind of a shortcut.  Especially if you do not have the resources of a large company but you want to know and get the heads‐up of what’s going on, follow Twitter very carefully.  Set up something that shows things that you care about and [the  f ll h h h h h b d[ happropriate] key words. And just monitor that.”  Starbucks has two or three people that monitor those sites.  Guiste and his team have yet to see something  pthat was on Twitter that was a surprise. [Matthew Guiste Open Innovation & Social Media. Sep  [ p p29, 2010]Jeofrey Bean 16
  17. 17. Jeofrey BeanJeofrey Bean is the author of the book ‘The Customer Experience Revolution’ with Sean Van Tyne.  He is an engaging speaker and an expert in building valuable differentiation with marketing, product development and customer experience leadership.  Jeof is known for making the seemingly complex easy to understand.known for making the seemingly complex easy to understand.He is the Founder and Principal of Del Mar Research & Consulting, LLC, and a sought after speaker and insightful advisor to companies wanting to increase the certainty and effectiveness of their business decisions and new opportunities.  Jeof’s experience spans  ff i f h i b i d ii d ii J f’ istrategic to tactical with small innovative businesses and dynamic Fortune 500 companies including ComplianceMAX, ProMediaTel Wireless, I Drive , LPL Financial, AT&T, Sprint and Quest Diagnostics.  p Q g Jeof Bean | Principal | Del Mar Research & Consulting, LLC | 858‐334‐9266 Contact Waterside Productions with Contact Waterside Productions with  Foreign Rights inquiries 17