Starbucks Customer Life Cycle Analysis

Improved Essays
A customer life cycle normally used to manage and maintain the relationship of the customer with the company. This relationship is between two people, there are three stages in the customer lifecycle with different phases of activity.

The first stage is customer acquisition. The process of customer acquisition refers to acquiring new customers to the company. In the words, this is a strategy using by the company to gaining new customers include persuade customers to buy the products and services from the company. Many companies were facing challenges and techniques with obtaining new customers at lower cost. Starbucks has successful acquiring their new customer at lower cost through social media. According to McNamara (2015) found that Starbucks
…show more content…
One of the promotions is buy 1 get 1 free rather than reduce the price to attract customers. This promotion aims is encourage those existing consumers to share a coffee with their friend and family (Ana, 2015). This is another way allows Starbucks to reach new customers, because if these people are satisfied the tastes of drinks or they have a great experience with Starbucks’s customer service, they will become consumer to purchase the product from Starbuck in future. Starbucks has been making a successful story to reach their customer through buy 1 get 1 free promotion with received many comments on social media and supports from the consumer.

The second stage is customer retention. The process of customer retention is the companies take action to decrease the chance of losing the client. This can help the companies to maintain the long-term relationship with existing client as many as
…show more content…
The customer can use Starbucks mobile apps to make a purchase with every product in the Starbucks store instead of paying by cash, they only have to download Starbucks mobile apps on the phone and register with their account. This account is linked to the Starbucks card as well. The app allows the customer to make purchase Starbucks’ products by letting patrons display a barcode to be scanned at the point of sale. According to Roemmele (2014) said that this genius idea was developed by Benjamin Vigier and his team, this app also helps Starbucks achieve 11 percent volume of sales through Starbucks app in

Related Documents

  • Decent Essays

    First, it is important to focus on what the customer…

    • 357 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    The problem Customer retention and growth are vital to the success of any business. This means developing the loyal return of current customers and increasing the in-flow of new customers. Encouraging viral, social media engagement and developing loyalty packages are traditionally time consuming and overly expensive.…

    • 448 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Case Study: Westjet

    • 554 Words
    • 3 Pages

    Firstly, the company can use a Customer Relationship Management System to better understand consumer's needs and experience, have a clear preception on how to market its services to consumers, create sustainable business relationships, gather valuable information, reach further proseperty, and etc. This will also help the company become aligned with the company goals and stragies. According to Management Study Guide (2017) " Customer Relationship management is the strongest and the most efficient approach in maintaining and creating relationships with customers. Customer relationship management is not only pure business but also ideate strong personal bonding within people. Development of this type of bonding drives the business to new levels of success."…

    • 554 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Starbucks has a very well-known brand globally. They plan to leverage their brands strength, identity across the globe (Starbucks Newsroom, 2016).…

    • 492 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    year and inflating the total number of repeat guests and customer loyalty. 4 This increase in percentage will lead to a greater growth for the company. There are many positive aspects and reasons why Rosewood should move to a corporate brand.…

    • 479 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Building and maintaining long term customers is very crucial to gaining loyal customers and staying in business. Furthermore, established relationships with customers, suppliers, and employees increase the stability of the business which leads to economic growth. Levels of customer relationship management was another key section of this article because it describes social bonding. Its imperative to have long term relations and trust between businesses, customers, and suppliers. For example, one reasons why existing relationships might be at risk because the next successor may not always continue to use the same financial arrangements negotiated by the founder of the business for established customers.…

    • 1050 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    In the article Marketing is Everything, Regis McKenna, describes the transformation of marketing throughout the years as technology became more advanced, marketing has shifted to a consumer focus instead of a profit focus. As McKenna has stated, “Marketing has shifted from tricking the customer to blaming the customer to satisfying the customer. (McKenna, 1991)”. Although it may seem as though this phrase is an overstatement, it is actually demonstrating the growth of the marketing industry and their adaptation to meet the needs of the consumer. The fundamental perception of marketing is to “integrate the customer into the company, to create and sustain relationship between the company and the customer” (McKenna, 1991).…

    • 1270 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    Marketing segmentation and positioning for Toyota Company. Marketing is a process of creating, communicating and delivering products to customers and stakeholders to satisfy their needs. Companies should develop variety of ways to get customers and understand what they need. For every customer, the company uses specific way of delivering the product because company cannot sell all products and vehicles to one single customer.…

    • 707 Words
    • 3 Pages
    Superior Essays
  • Improved Essays

    Intrapreneurship is acting like an entrepreneur within a larger organization. Intrapreneurs are usually highly self-motivated, proactive and action-oriented people who are comfortable with taking the initiative, even within the boundaries of an organization, in pursuit of an innovative product or service (www.investopedia.com). Starbucks is well-known company for their variety of their special drink such as various selection tea, coffee, espresso beverages, smoothies and etc. However, there is always more growth and improvement and adding few more drinks in Starbucks menu can to be United States market as international.…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Airasia Case Study

    • 1214 Words
    • 5 Pages

    I. INTRODUCTION a. Objectives and Scope AirAsia is a malaysian low-cost airline. It scheduled domestic and international flights and is Asia’s largest low fare airline. Nowadays, MIS is a significant factor that influence the airlines system. In this article, the writer will focused on the online booking department that generized with the MIS system.…

    • 1214 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Apart of the high demand and cost for petroleum these days, coffee is appointed to be the second most traded product on global markets next to oil. Coffee is nature resources that is cultivated in more than 50 countries and provides living for more than 22 million farmers, altogether up to 100 million people are involved in the cultivating process, trading and retailing of the product globally. The aim of this report is to answer the questions given in the study case regarding to the demand and supply for Starbucks coffee. Starbuck Corporation is a company that purchase, sell and roast whole bean and rich-brewed coffees, espresso beverage, a selection of food items and coffee related a selection of quality teas, it is also the premier retailer, roaster and brand of speciality coffee in the world, Starbuck operates in 65 countries, according to the annual report of Starbuck, it has 10,713 stores in total located in North America, Latin America, Africa, Europe, Australia and Asia, it was found in…

    • 1051 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Though Starbucks is known as such and is a leader among other coffee proprietors it has an opportunity to do much more than what it is known for. Starbucks is a household name and with that kind of power it can create new ventures that may catch on and earn it new streams of revenue. Starbucks could go from being an entrepreneurial to an entrepreneur even though their business is already established.…

    • 1151 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Starbucks is the global leader in the coffee house industry. With it primary market in the US, Starbucks hinges its competitive advantage on the quality of its products and services. In addition to a globally recognized brand, the company has achieved wide-ranging success in spite of the implementation of a premium pricing strategy. Although the company has diversified its coffee brands, specialization in coffee stands as a strength and weakness in the enterprise. However, based on the performance in the market, the marketing, and operational strategies are suited for the various market segments.…

    • 3556 Words
    • 15 Pages
    Improved Essays
  • Improved Essays

    Starbuck is has policies that guide its coffee purchasing, processing and selling. Through Coffee and Farmer Equity practices, the company is able to effectively manage the farmers. All the suppliers must conform to the business ethics cherished by Starbucks. Through social responsibility, the company is able to reach out to the surrounding community and manage it.…

    • 1096 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Starbucks Mission Analysis

    • 1099 Words
    • 5 Pages

    Starbucks has one simple mission, which is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” It is this mission statement which has contributed to the development of the brand over the past four decades, as it is found in Starbucks more than just a coffee shop. It is not just an “escape” for anyone who needs a break from their day-to-day work but also becomes a place for friends to hang out and even a venue for businessman to meet. We want to provide people - regardless of their age, occupation, or location - a unique experience: a coffee shop as a place to relax, work and make friends.…

    • 1099 Words
    • 5 Pages
    Great Essays