The Last Word: Customer Solutions Profit Ideas

Will Starbucks not be on every corner???? Starbucks announced a few months back that they will be closing many of their outlets. In their report to analysts, they sited poor real estate decisions. They apparently put some store sales at risk when opening too many locations within too close a proximity.

This is unfortunate, but often what happens when a company gets too big to closely manage all aspects of their operations. As any retail CEO knows – location and a smart real estate strategy are keys to success or failure. That and a good customer service reputation.

I continue to admire Starbucks for the brand and company that they have become, and hope that they will look internally to improve their operational decision-making and procedures. For consumers and fans it will mean fewer Starbucks and longer lines at the ones that remain – but that is the adjustment necessary for a company that got a bit too big and sloppy in its rollout strategy.

Now, let’s chat about those longer lines… if they want to keep their customers, they will need to pay special attention to customer experience management. The store closings could stress their customer service for the ones that remain – which, after all, is an important component of their success.

I don’t know about you, but I look forward to going into my local Starbucks and being recognized and greeted as if I matter! In an increasingly impersonal world, they offer a sense of community this is welcome.

For Starbucks they will survive because while real estate decisions were unsound, their product and customer service strategies have been consistent, high quality and well managed. Customer experience management should include employee monitoring to ensure that they maintain that high level of customer service while absorbing customers from the closed locations.