Stevens Consulting Group

Recently a myriad of announcements made the news that Starbucks is making changes due to increased competition from of all competitors- McDonalds. This brings to mind the importance of brand and brand equity. Branding is value, the value of your product or service and more importantly the perception clients have of your business. A brand is often worth more than the business. Think of the brands you consume; Coke Cola, FedEx, Kleenex to name a few of many. Branding positions your business and makes consumers desire your offering.

The value of a brand creates an allure to the business. Consumers simply want to conduct business because of its power. Exemplars are Kleenex for its quality, Rolls Royce for its luxury and Harvard for its education. Building a useful, titillating and valuable brand produces a cachet. Prospective customers will find you, hear about your brand and value your offerings based on perception. The value of a brand enables the business to differentiate itself from competition.

So the real question- what happened to Starbucks? Simply put, they diluted their brand. This was not a single-handed choice nor intentional but brands do get diluted. Dilution has happened to a myriad of companies such as Coke Cola, Federal Express and others, even McDonalds suffered from product dilution. In the case of Starbucks there have been several factors but two of the most prevalent concern growth and the customer. Ironically there is a certain reciprocity affecting both. Starbucks desired to increase profits with continual and incredible growth, however in doing so they forgot about their most important asset- the customer. Yet in order to appeal to clients that crave Starbucks, there is a need to grow in markets.

However, in growing Starbucks forgot about core. Similar to fitness, core is the foundation of all business. Core is necessary to remain true to strategic direction and mission. In the case of Starbucks their core is coffee and the pleasant experience of capturing the aroma, excitement and attitude of relaxing in an Italian cafe. Starbucks got lost in commercialization, competition and lust for revenue. This is not to say that greed is bad, but when an organization fails to retain core and operates with only revenue in mind, failing to maintain client allure, then business, revenues and clients will be lost.

Is it possible to regain competitiveness and allure? Certainly, for Starbucks it is a return to basics and a return to customer attention. It will take time and for now time is on their side.

Labels: brand recognition, branding, customer service, Customer Service Training, internet marketing, Sales marketing, selling techniques, selling tips, Strategic Selling, value

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Posted by Drew Stevens at 2:32 PM | Permalink | Comments

Yet business growth is more than money. It’s about creating value for those that request it—your customers. Unfortunately, too many businesses and their leadership team focus on new acquisition and not on existing clients. There is no better way to remain competitive, produce a strong brand, and lower cost of acquisition then customer fidelity.

From Emotion to Devotion
Creating a loyal client base with no acquisition cost

By Drew Stevens

Ask an organization why they are in business and they instantly state, “To make money.” Yet business growth is more than money. It’s about creating value for those that request it—your customers. Unfortunately, too many businesses and their leadership team focus on new acquisition and not on existing clients. There is no better way to remain competitive, produce a strong brand, and lower cost of acquisition then customer fidelity.

Today most businesses clamor for customer satisfaction. There is so much literature on the subject that tips are as frequent as channels on cable television. Customer satisfaction is a bromide. The more important issue to focus is the customer experience The customer experience starts at the initial reception, goes through the purchase and ends with the follow-up. Presently, organizations operate in an acute microcosm looking solely at customer satisfaction by reviewing sole interactions with clients. Customer experience is a constant and repetitive occurrence that illustrates accurate and consistent trends.

Some companies don't understand why they should worry about customer experience. Others collect and quantify data on it but don't circulate the findings. Still others do the measuring and distributing but fail to make anyone responsible for putting the information to use. In a recent survey by Bain and Company only 8% of clients believe they had experienced superior service. The reason for its importance is the multiplicity of potential new clients.

Key exemplars engage their clients and understand how to keep them engaged. A consumer and frequent client for a local UPS store requested brochure copies. The copies were promised for delivery late on a Friday. Through a series of unfortunate events the store missed the deadline. Defying defeat, the store operator personally completed the order. The client received a telephone call at 9:30 PM on a Sunday evening. The owner was personally dropping the brochures.

Other exemplars are Starbuck’s where Baristas remember not only names but the drink orders of repeat clients. Southwest Airlines personally developed a culture of customer experience with its communication. Further, Apple Computers for decades enraptures customers with flexibility, ease and personal commitment. These companies purposefully engage clients and create a customer culture. The mantra for each assists to lower marketing costs, yet multiply clients due in large measure to personal success stories. The clamor for assistance, the desire for personal attention and the yielding of profits to performance creates a devoted and loyal fan base. Satisfying clients achieves numerical goals, however translating them into an experience is a lesson in long term business success.

About Drew Stevens PhD
Drew Stevens PhD is known as the Sales Strategist. Dr. Drew creates more revenues in less time. He is the author of seven books including Split Second Selling and Split Second Customer Service and Little Book of Hope and is frequently called on the media for his expertise. Sign up for Dr. Drew's newsletter The Sales Strategist at (drew3-143901@autocontactor.com) and review his new book Split Second Selling at www.gettingtothefinishline.com/products.asp A

Labels: branding, cusotmer service training, customer loyalty, customer retention, customer service, selling

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Posted by Drew Stevens at 4:17 PM | Permalink | Comments