"Some consumers are cutting back their spending, including on food and dining out. That might seem like a problem for Starbucks, where a standard pumpkin spice latte can set you back $6. Starbucks CEO Brian Niccol has a plan to win over cost-conscious customers, though: Offer great customer service. Speaking at the Fast Company Innovation Festival on Tuesday, Niccol was asked whether he worried that concerns about the economy and personal spending might keep middle-class customers away from the chain."
"Niccol said Starbucks is trying to draw in customers with a great experience. "I would love for Starbucks to become the greatest customer service company," he said at the event. "Right now, when I ask people to name me a great customer service company, I usually get a blank stare," Niccol said. That points to an opportunity for Starbucks if it can offer both exceptional service and a menu that customers like, he said."
"A Starbucks spokesperson directed Business Insider to Niccol's earlier commentary, which suggested customers were finding value from the strategy. "Customer value perceptions are near two-year highs, driven by gains among Gen Z and millennials, who make up over half our customer base," Niccol said on the company's third-quarter earnings call. Under Niccol's leadership, Starbucks has made several changes the company said are aimed at improving service."
Many consumers are cutting back on spending, including on dining out, which could pressure mid-market food and beverage retailers. Starbucks aims to attract cost-conscious customers by emphasizing exceptional customer service combined with a menu that customers like and prices perceived as valuable. Customer value perceptions are near two-year highs, driven by Gen Z and millennials who make up over half the customer base. The company has implemented operational changes intended to improve service, including staffing adjustments and other measures designed to speed service and enhance the overall customer experience.
Read at Business Insider
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