Starbucks implemented a Web 2.0 platform to collect customer ideas and feedback after its stock price declined. However, the company did not properly reward or compensate customers for ideas, leading to negative customer responses. Starbucks later removed its non-compensation rules. Still, after rebranding in 2011, it appeared Starbucks had not truly changed its attitude toward prioritizing customer needs. The document provides recommendations for how companies can better utilize social media and value customer participation.

1. STRABUCKS
WEB 2.0
EXPERIENCE
ASK YOUR CUSTOMER FOR A HELP

2. Introduction
Starbucks`s stock price was going down,
then the entire market grew up.
The management decided to implement the
Web 2.0 technology to collect customer`s
ideas and feedbacks
Learn about the mistakes they made
and that they have learned

3. Market doesn`t believe in Starbucks
2008
Starbucks Corp. (SBUX)

4. But still love coffee
Tim Hortons Inc (THI.TO)
competitor

5. The Case

6. We have to be open Corporate
for our customer
needs ! MEETING
YES
SIR !
CEO VP STRATEGY

7. What is Web 2.0 ?
Aha !
Web 2.0 it is about the
customer who helps
company to growth
Gotcha !!
Web 2.0 includes a social element where users
generate and distribute content, often with freedom
to share and re-use. This can result in a rise in the
economic value of the web to businesses, as users
can perform more activities online...

8. Idea site is ready …
http://mystarbucksidea.force.com/

9. .. and customers are willing to help !

10. BUT
did Starbucks
really care ?
If we implement your idea, we may
give you credit on the site, but we
won’t be compensating customers
if their ideas are chosen

11. Customers responded accordingly

12. NEEXT WEEK
Recommendations
the non-compensation rules
WAS DELETED

13. EVERY CUSTOMER
received the reward

14. The stock normalized
Starbucks Corp. (SBUX)

15. A single action can change the
situation just temporary
After rebranding in 2011 we
have checked if Starbucks
has changed its attitude to
customer's needs or not.

16. New Logo, but still the same troubles
Unfortunately, after working with Starbuck`s
customers support, we have to conclude, that they:
 Do not put the attention
 Do not care about the results
 Do not concern
 Didn`t learn nothing
… If so, how long
they could survive ?

17. Recommendations
for companies creating
the social capital

18. Stop exploiting
YOUR CUSTOMERS !
Web 2.0
Is not about the exploitation,
It is about the cooperation !

19. Tools are important
To DO:
- Make in comfortable
- Make it easy to access (no tons passwords)
- Make it sharable to any social network
- Make it manageable (delete , change, edit)
- Make it capable (no text, or graphics limits)
- Make it interactive (pictures, video, audio)
- Make it easy to store, find and sort ideas
NOT to DO:
- Do not create too much policy
- Do not kill customer (block or delete)
- Do not ignore the issues
- Do not delay the solution

20. Community is everything
To DO:
- Compliment EVERYONE !!!
- Individually compliment the best individuals
- Show your interest by asking questions
- Connect with internal professionals
- Reward (discounts, tickets, your products)
- Celebrate (invite to a party)
NOT to DO:
- Do not be a robot
- Do not use the e-mail templates
- Do not ignore comments and complains
- Do not be anger
- Do not say just “Thank you”

21. Value in participation
To DO:
- Value every idea (keep it, store, organize)
- Discuss and share ideas with colleagues
- Help to develop ideas and participate in discussion
- Create the community of experts
- Present the best ideas to the management
- Invite customer to your team
NOT to DO:
- Do not ignore
- Do not delete ideas
- Do not develop any rating and voting system
- Do not create any competition
- Do not be stupid !

22. MADE BY
CUSTOMER
TORONTO 2008