August 18th, 2008 by Lauren McKay

The customer experience was the heart of the matter during this morning’s destinationCRM pre-conference seminar led by Strativity Group president Lior Arussy. The consultant, author, and Customer Experience Management genius provided the small group of listeners with tales of customer loyalty and companies that really hit the nail on the head when it comes to making experiences memorable.

One business Arussy mentioned was Starbucks. The coffee corp has made recent headlines for store closings across the nation as consumers feel the effects of a weakened economy. Four-dollar daily lattes don’t exactly bode well with a tight budget. I have been trying to kick my specialty coffee habit, but honestly, telling myself I can’t go to Starbucks only makes me want it more.

Arussy shared that at a recent conference he attended, the line for the convention center Starbucks was about 50-people deep. During session breaks, the coffee fanatics flocked to the shop, despite numerous tables of free coffee, soda, and tea provided by the conference. [Note: Soon after Arussy told this tale, an attendee entered the room, plopped down beside me with a Grande Starbucks beverage and baked good.] They must be doing something right, I thought.

In it’s most recent attempts to keep drinkers coming back, Starbucks started a summer special to drive more sales of iced drinks. When you buy any drink in the morning, you can bring back your receipt after 2 pm for a $2 iced beverage. I’m curious about the results of this ploy. Would the results be the same if it said $2 iced coffee rather than $2 any iced drink? Arussy points out that where Starbucks differentiates itself is the idea of personalization. Did you know that with all of the different coffee, milk, flavoring combinations, there’s a whopping 19,000 possible drink combinations? “It makes you feel like your cup is the only cup in the world,” Arussy says. I couldn’t agree more.

Another topic Arussy addresses is the idea of Customer Experience Mapping. He says to look at a customer’s wants and needs not from a profit standpoint, but rather from an emotional one. Customers who go to Starbucks are not always just there for coffee. And Starbucks knows this. They know that their stores are often a place of refuge — from the rain, to meet up with friends, to use the bathroom, and to read or do work. They still charge hourly for WiFi and I imagine make a pretty penny off doing so. I recently read that with loyalty cards, patrons can get up to two free hours of service. (That’s right – another way to keep ‘em coming in.)

I will admit that the company has its flaws. The closing of 600 of its stores and its falling stock prices are evidence of this. However, one thing that keeps me coming back to the Starbucks store at 35th and 8th ave is the fact that the employees know my face. I am greeted with a smile and asked if I want my usual tall coffee or iced latte. To me, that is powerful. Do I want my regular? Nah, I am going to try something different – and with 19,000 options, I’ve got a ways to go.

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