CRM
Customer Relationship Management(CRM) is a process used by different brands and companies to build and establish a long-lasting and effective relationship with their respective customers. This process generally includes data analysis and the study of large amounts of information about their customers. Let see about what CRM does Starbucks uses?
About Starbucks?
Starbucks, a leading coffee brand having established its roots in America on 30th March 1971. Starbucks is known for its variety of coffee drinks. With the age of time, it began to spread its roots to other parts of the world as well. This coffeehouse chain, at present, has 22,551 shops across the world.
Starbucks’ CRM strategy
Starbucks follows a very effective recipe to manage its relationship with its customers. Strategies are established to connect and set up interaction between Starbucks and its existing and upcoming customers. Starbucks also gets access to the historical data of its customers. Starbucks implements certain programs or strategies intending to generate high revenue and profit along with carrying on a good relationship with its customers.
Programs introduced by Starbucks as a part of its CRM?
Starbucks performs CRM through its various Customer loyalty programs which makes its customers feel special and wants them to visit there often. Various programs that are followed by Starbucks as a part of their CRM are
Consona
The top CRM strategy used by Starbucks in Consona. Consona is more of a system or software with a 360 – degree view. This system allows Starbucks to get access to the database of its customers. The use of these systems helps Starbucks keep track of daily activities, customer information, business processes, and data collection that can be used in decision-making.
My Starbucks Rewards
Every time a customer spends $3.92, the customer is rewarded with one star with a registered Starbucks card. More stars mean greater rewards. The customer is first supposed to register a Starbucks card.
The Starbucks Reward program comprises three reward levels
- Welcome – The customer earns the first reward as soon as the registration is being made. It includes a tall drink of the customer’s choice on birthdays. Another reward is a free size upgrade on any beverage of the customer’s choice.
- Green – 5 stars make a customer’s entry green level. In this level along with the rewards in the first level, two additional rewards are given. This includes a free tall hot drink on purchase of 250g whole bean coffee and free size up-gradation for featured beverages during the first 2 weeks of its launch.
- Gold – When one collects 25 stars within 12 months, then the customer enters the Gold level and can keep the rewards for another 12 months by collecting additional 25 stars. Along with the welcome and green level stars, customers get 2 more additional rewards at this level. It includes a treat of tall drink every time a customer earns 10 stars and also the customer gets access to special offers but for that, the customer needs to opt-in to receive mail.
My Starbucks Idea
Another strategy adopted by Starbucks as a part of its CRM is My Starbucks Idea Starbucks takes its customer’s feedback into account.
Thus the platform allows users to directly interact with Starbucks and also give in their ideas, feedback, votes, and reviews. Starbucks with help of these interactions gets to know about what their customers think and thus helps them in improving. My Starbucks idea was initiated in 2008 and retired after a decade in 2018. This enabled the customer to think that they are being listened to and their feedback matters. My Starbucks Idea increased Starbucks’ customer loyalty.
Starbucks still considers customers’ feedback. It still encourages its customers to put in suggestions and reviews through Twitter and Starbucks’ official website.
Starbucks’ recipe for its effective CRM
Campaigns play a significant role in getting in touch with the public but it requires a proper layout and plans to make it effective. Here Starbucks very successfully uses its customer database. After researching customers’ Dates of Birth, Starbucks wishes the customer via email and gives them a redeemable postcard which effectively has increased its customer loyalty.
Starbucks follows a 7 ingredient recipe for its effective CRM. It includes
- Basics – Targeting its gold card members frequently as these members are frequent users of their product which encourages other customers to get gold cards.
- Event – It makes the customer realize the benefit of being a regular customer, especially on birthdays.
- Multichannel uses – Promoting its programs on various platforms and sending redeemable coupons on birthdays.
- Multipurpose benefits – By sending birthday wishes and postcards, Starbucks is not just increasing its loyalty but also by asking them to confirm their drinks are gaining the trust of its customers and updating their database information.
- Encourages others to share – It is very obvious that customers brag if they get something for free at a discount. The birthday postcards promote their campaign.
- Innovative ideas from the world – Starbucks through its interaction with customers many times gets innovative and unique ideas which are highly appreciated by Starbucks.
- Social Media Platforms – By giving offers and gifts, they provide customers a chance to share all these things on different social media platforms and thus promote Starbucks.
Starbucks has a very well-established relationship with its customers through CRM. Its extraordinary schemes and offers allow it to attract more and more customers and thus enables it to outstand in market.
