Starbucks :

Brewing Customer Experience

through Social Media
 Table of Contents

01 Introduction

04 Moving Ahead

02 Social Media
Strategy

05 Conclusion

03 Entry in Social
Media
 01
Introduction
 History of Starbucks

● Founded in 1971 in Seattle by Gordon Bowker, Jerry Baldwin, and Zev Siegl as Starbucks Coffee, Tea
and Spice, initially selling fresh-roasted coffee beans and brewing accessories.

● Schultz, then vice-president of Hammarplast US operations, noticed Starbucks' large purchase of

drip coffee makers, leading to his joining as head of marketing.

● Inspired by Milan's coffee bars during a trip, Schultz introduced espresso sales in Starbucks' stores.

● Despite Baldwin and Bowker's reservations, Schultz established "Il Giornale" coffee house in 1985.

● In 1987, Baldwin and Bowker sold their six Starbucks stores and roasting plants, prompting Schultz
to acquire the brand.

● Schultz's leadership saw rapid expansion, including the introduction of a new store format
combining retail coffee-bean stores and espresso cafés.
 Founders

Jerry Baldwin Gordon Bowker Zev Siegl

English Teacher Writer History teacher

 Howard Schultz
Former CEO of Starbucks
 Downturn of Starbucks
● It expanded its stores from 1990s to 2000s, 165 stores in US in 1992, 15,000 stores in more than 40
countries by early 2008. This rapid expansion brought some problems in its operation.

● The services of the baristas turned impersonal and interaction with them grew limited due to the
new espresso machines that were installed across Starbucks’ retail locations.

● The recession in the US also had an adverse impact on the company, with people becoming
unwilling to pay a premium for a coffee at Starbucks

● At the same time, fast food retailers like McDonald’s and Dunkin’ Donuts started selling coffee at a
lower price.
 Reincarnation of Starbucks
● Schultz, who had been the CEO till 2000, assumed the role once again in January 2008.

● He then announced sweeping changes, which included closing underperforming stores, and declared
that the company’s comeback would be based largely on customer experience and innovation.

● As a part of this strategy, the company, alongside traditional advertising, ventured into social media in
a bigway.

● Schultz was of the view that through social media, the company could regain customers, who had
turned cynical towards Starbucks.

● Starbucks started interacting with customers through its own website,MyStarbucksIdea.com,where

customers could put forward their suggestions to improve the company, and also through other
social media websites like Facebook, microblogging site Twitter, and video sharing website YouTube.

● Starbucks went on to become one of the most ‘liked’ brands of Facebook and one of the most
followed brands on Twitter.These digital tools helped Starbucks enhance the customer experience
and improve customer interaction.
02
Starbucks Social Media
Strategy
 How did Starbucks embrace social media?
● Starbucks' Technological Engagement: Starbucks had a history of embracing technology, venturing
into media products such as CDs and videos, and collaborating with websites like Yahoo!

● Issues with Social Media: Despite its tech-savvy nature, Starbucks faced challenges with social
media, including firing employees for blogging about the company in 2005.

● Negative Publicity: In 2008, Starbucks faced negative reports on social media, particularly regarding
environmental concerns about water wastage in its outlets.

● Response and Learning: Starbucks initially justified its practices but eventually acknowledged the
need for change, realizing the impact of social media on its reputation and the necessity to adapt.

● Turnaround Strategy: CEO Schultz developed a detailed turnaround plan, emphasizing the
importance of a strong social media presence to reconnect with customers.

● Philosophy Towards Engagement: Starbucks saw social media as an extension of its philosophy of
interacting and engaging with customers on an individual basis.

● Establishment of Social Media Team: Starbucks formed a dedicated social media team within its
marketing department, involving cross-functional collaboration and constant input from different
departments to ensure a comprehensive approach.
Principles of Starbucks Social Media Strategy

Listen Be transparent
Use authorities

Share timely
Be human information Offer personal
attention

Don’t preach
Be humble in
replies Give fans access

Don’t spam
users
 03
Entry in Social
Media
Mystarbucksidea, Twitter & Facebook
Mystarbucksidea
 Mystarbucksidea.com
● In March 2008, Starbucks introduced several customer-facing initiatives in response to sliding sales,
including the introduction of semi-automatic espresso machines
● MyStarbucksidea.com, launched in July 2008, served as an online community where customers and
employees could submit ideas for new products and suggest improvements in Starbucks' service.
● The website encouraged customers to share their ideas, discuss other people's suggestions, and
actively participate in shaping the future of Starbucks.
● MyStarbucksidea.com had 48 idea partners, individuals involved in various activities within the
company.
● The website featured a section called 'Ideas to Action,' which served as a blog where Starbucks
employees discussed the implementation of different ideas.
● By 2011, the website had garnered 250,000 sign-ups, over 100,000 ideas submitted, a million votes
cast, and a total of 98 ideas implemented.
Twitter
 Twitter
● In mid-2008, Starbucks sought ways to engage with customers through social media.
● Barista Brad Nelson proposed using Twitter as a real-time communication platform and became
the product manager for Starbucks' Twitter efforts.
● Created various Twitter accounts for different purposes, including Starbucks Coffee, MyStarbucks
Idea, StarbucksStore.com, and StarbucksLive.
● Twitter served as a platform for individualized connections with customers, featuring customer
service interactions, Q&A sessions, and retweets.
● Starbucks replied promptly to most tweets, and customers appreciated the personalized and
non-generic nature of the responses.
● As of 2012, Starbucks was one of the most followed companies on Twitter.
Facebook
Facebook
● Starbucks created its Facebook page in November 2008, initially reaching out to existing fan pages
and inviting them to be part of the official Starbucks community.
● The Facebook pages included tabs for international details, games, employment opportunities,
Starbucks Cards, events, and videos about Starbucks.
● Starbucks frequently posted pictures of its outlets, new products, staff, and activities such as
voluntary work in children's homes and park cleanups.
● The Facebook page served as a platform for discussions on various topics, including Starbucks'
endorsement of marriage equality.
● Starbucks engaged visitors with interactive content that tapped into their unique tastes and
preferences.
● By 2009, Starbucks had over 3 million fans on Facebook, becoming the most popular brand on the
platform by July 2009 with 3.7 million fans and as of April 2012, Starbucks had accumulated 30 million
fans on Facebook.
04
Moving
Ahead
 YouTube Presence
Use of other ● Starbucks utilized YouTube to upload a

Social Media
variety of videos, including brand-related
content, advertisements, voluntary
activities, historical events, coffee blends,
and more.
● The company allowed its YouTube videos to
be embedded on other websites.

Instagram Engagement
● Starbucks maintained a presence on
Instagram, sharing photographs of its
products, global outlets, in-store
ambiance, coffee tasting sessions, new
product ideas, and more.
● Customers were encouraged to post
content using the Starbucks hashtag.
 Use of Other Social Media

Mobile Payment Application

● Starbucks developed a mobile application that allowed customers to pay for goods using their
smartphones.
● Mobile payments were accepted through the Starbucks Card, iPhone, and BlackBerry.
● Customers could show a barcode on their phones at checkout, and their details would be
registered for future transactions.

Brightkite for Localized Brand Integration:

● Starbucks used the mobile social network Brightkite to stay connected with customers and
implement locally targeted brand integration.
● Brightkite was utilized for specific promotions, such as The Frappuccino Happy Hour in 2010
 Social media to improve customer engagement
1. Customer Experience and Relationship Building:
○ Starbucks prioritized using social media to provide a positive customer experience and build
relationships.
○ Annie Young-Scrivner, Starbucks' global CMO, emphasized the importance of listening to customers,
stating that it allowed the company to stay fresh.

2. Green Initiatives Promotion ,VIA Coffee Launch and Social Media Listening
○ Starbucks used Facebook to promote events related to green initiatives, such as offering free coffee
to customers bringing their own cups.
○ Starbucks utilized social media, particularly listening to customer opinions, to launch VIA coffee, a
consumer packaged goods product distributed through 40 points.
○ Social media was employed to share stories about product usage and understand customer reactions

3. Frappuccino Customization through Social Media:

○ Starbucks engaged customers through Twitter, seeking suggestions for customizing the popular
Frappuccino beverage.
○ Changes were made based on customer suggestions, emphasizing the personalization of the product.
Free Coffee Promotion during US Presidential Elections:

○ Starbucks leveraged social media, including Facebook and YouTube, to announce and
promote the campaign offering free coffee to those who voted in the US presidential
elections.
○ The campaign went viral, garnering significant attention and impressions on social media
platforms.

Interactive Responses to Customer Suggestions:

○ Starbucks actively responded to customer suggestions, such as a deaf customer's request for
baristas to learn sign language.
○ Responses were shared through various social media channels, including YouTube and
Twitter.
05 Conclusion
 Conclusion

● Facebook and Twitter Dominance

● Cost-Effective Strategy
● MyStarbucksIdea Challenges
● International Social Media Recognition
● Emotional Connection with Customers
Thank
You