Starbucks Customer Observation

Improved Essays
Consumer activity to observe:
Starbucks (HKUST), a coffee shop originated from America. The company offers a wide variety of high-quality foods, including beverages, muffins, doughnuts as well as fresh fruits. Starbucks is a place where it hopes to educate and enhance the best possible customer experience, with the goal of becoming the third place in our daily lives other than home and workplace. Likewise, it aims to provide a comfortable environment for people to work and study as long as they want, and also to spend their spare time when they got no place to go.

A short description of your method:
We visited the coffee shop at the peak hour on Wednesday, 4/10 afternoon, spending an hour in the coffee shop observing consumers behavior and
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Currently, a customer is entitled to have a free drink once they join the membership program. Such benefit could motivate newcomers to become one of the members in Starbucks. Although Starbucks massively promote the idea of membership card in social media, the above proposal was relatively passive as it only depends on the initiative of the newcomers. Therefore, to strengthen the publicity of the membership program and boost up the sales volume, the manager should make use of the word of mouth marketing strategy, by introducing a referral-a-friend program to attract more …show more content…
Such idea not only could reach new customers but also create motivations to both the referrer and referee to engage in the program, giving a higher retention rate and successfully maintaining existing loyal customers.

Version 2: (family/friend group membership plan)
A group of four people could form and join the new family/friend group membership plan.
When a member of the group purchase an item using the group membership plan, stars will be accumulated in the group membership. It should be noted that the new scheme would still keep the system of "earn 1 Star every time you spend HKD$ 20 in Starbucks".

When stars are accumulated to a certain number (e.g. 50 Stars) Starbucks should not only upgrade the member level but also setting up extra rewarding schemes, such as rewarding six tall size beverages.

The new promotion plan is more attractive than the original program, since Starbucks could reach for new customers, members can enjoy more benefits than before, promoting more incentive for them to consume. In addition, a group of people would buy beverages in Starbucks rather than one. Besides, this could also alleviate the problem where people only occupy the seats without ordering any beverage as they want to earn more stars for the group membership plan and in exchange more

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