Executive Summary

Executive Summary

This report covers the CRM activities and practices of Starbucks Coffee Singapore. It includes the company’s profile, which enables the reader to have a clear understanding of the tremendous growth that the company has realized since it was first established. The report draws close attention to the company’s culture of connecting with customers and it examines how this has contributed to the formulation of practices in its customer relationship management. The organization’s culture has not only affected the company, but it has had an effect in the way that it treats its employees, which it refers to as partners. Further research covers the use of technology in enhancing customer experience. The company has implemented different technological innovations as a way of rewarding and showing appreciation to its customers. The paper also examines how the company’s decision to acknowledge its neighbors and the surrounding community has served to improve its customer relationship management. The research includes the plans of the company especially relating to CRM activities.

Table of contents

Company Description. 3

CRM Planning Process: 4

CRM Implementation Process. 7

Impact of CRM on sales and marketing strategy. 8

Outcome of CRM implementation. 9

Conclusion & future plans of company Strategy. 10

Lessons learnt 11





CRM Strategies

Company Description

Singapore is one of the fifty countries where Starbucks operates. Starbucks Coffee Singapore became a wholly owned subsidiary of Starbucks Coffee Corporation in 2004. The company has realized impressive growth since it opened its first store in the country in 1996, as it currently has 92 stores. The company believes in offering the finest coffee and ensuring that its customers are satisfied and that they have the best experience. It buys and roasts coffee beans of the highest quality, which it sells in its outlets. The company also makes different pastries and other beverages. Customers are assured of high quality products whenever they visit any Starbucks outlet. The company deals with specialty coffee beans and premium teas and this increases the price of its commodities.

The company utilizes aggressive marketing, which involves rapid expansion of its stores. It is willing to open in new markets, and this has given it advantage over its competitors. The company opens its stores strategically. It looks for high traffic areas such as places of work and areas where people shop and dine. The strategic locations ensure that the company always has customers. The company utilizes different strategies to ensure that it meets the expectations of its customers. The layout adopted is comfortable and inviting. It creates an intimate environment and provides space where individuals have their own space. This is enhanced by the mixture of different types and designs of furniture. The company has taken great strides in the way it designs and arranges the armchairs, sofas, coffee tables, chairs, stools, and bars. The meeting room tables are different from the rest of the furniture.

The company has ensured that different kinds of groups and individuals feel welcome. Some sections of the stores have great music that people can listen to as they take their coffee. Other sections are quiet and are especially suitable for people looking for peace and quiet. Such sections provide a good environment where people can read and do their work. The company values the contribution of its employees who are instrumental in its success. It refers to its employees are partners, and this shows how highly it regards them. It has over 1,200 employees and it is committed to provide a good working environment for them and treat them with dignity and respect. In addition, the company has created a diverse working environment. It does not discriminate against individuals but hires people based on their ability to work.

CRM Planning Process:

Many companies have realized the importance of customer relationship management. Customers are essential for the survival of any business. Starbucks Coffee Singapore values its customers. It is committed to ensure that all the customers are comfortable and satisfied with the services offered. It does this through different ways. Everything that the company does, from the selection of its products and services to the layout and design of its stores is aimed at ensuring the maximum comfort and satisfaction of the employees. Companies can build the relationship they have with their customers by providing an atmosphere where the customers have positive feelings. The company has done this by providing different forms of furniture and seating arrangements. Customers can choose from a selection of armchairs, sofas, coffee tables and stools, meeting tables and venues, and bars. This gives them a greater variety. Customers can sit alone or with group of friends as they enjoy a cup of coffee. The coffee stores have created different environments. Customers can decide to enjoy their coffee as they listen to some great music provided, or they can decide to sit in a quiet place where they can read a book or do some work.

CRM entails the organization’s efforts to interact with its customers. it involves the activities that enable businesses to understand its customers, retain the customers it has by ensuring that they have good experiences, and attract new clientele. Customer relationship management also aims at ensuring that businesses make maximum profit. The company has done this by offering the Singapore Starbucks Card, which serves as a value card and a membership card. The company has maximized the use of technology in many of its applications. It has done this to ensure that customers can access it quickly and easily. Customers have the option of calling the company through a toll free number, which is provided on the company’s website. In addition, they can use any of the emails given on the website to communicate with the customers. Moreover, the website offers a lot of information and it is easy to use.

Customers can get the information they need by navigating through the company’s website. The company believes in connecting with its customers. Its mission goes beyond making enough profit for the year and increasing the number of customers in its stores. In addition to serving the customers, the employees take the time to laugh and talk with them. The company has a culture where it encourages the employees to lift up the client’s mood. The workers do this by taking some time to converse with the customers. By doing this, the company is able to establish a real human connection and this makes the customers feel valued.

Starbucks Singapore refers to its customers as partners. This is in line with the general organizational culture that is persistent in all the Singapore stores around the world. The company views its employees as the first customers. Therefore, it accords them uttermost respect and value. Because of this, the employees work hard to ensure that the company succeeds. They are partners in the organization, and this makes them want to achieve more. This benefits the company in the end. The employees will treat the customers well because they understand their importance. This is in turn good for the business since it will increase the customers’ loyalty.

The company believes that they are part of every neighborhood and community where its stores are located. It does not exist in isolation, as it depends on the people of specific communities to visit its stores. The company realizes the importance of communities in the achievement of its goals and objectives. It appreciates the neighbors by identifying the needs that exist and the challenges that the people are undergoing. It identifies ways of solving these challenges and problems. The company has been able to assist different individuals and groups by participating in different projects. It has assisted people living with autism by giving them funds to ensure that they are able to integrate in the community. It has assisted farmers in the region by providing them compost made from coffee beans. In addition, the company has donated foodstuffs to the needy in the community.

The company aims at forming relationships and connecting with its customers. It has taken great strides to ensure that customers experience a sense of belonging whenever they visit any of the stores. For instance, the company has made it possible for customers to customize their drinks. This is despite the fact that the company already has a diverse selection of drinks and some food items. Customers can choose their espresso, the syrup they want to use in their drinks, and the type of milk they want, among other modifiers. Customers value and appreciate this sense of freedom. They get to enjoy professionally made coffee and at the same time, they can change it based on their personal preferences.

The company’s website includes a lot of information concerning the products offered. New and potential clients do not have to worry about what to order. They can visit the website, which explains many of the items on the menu. The company’s website describes what some menu items, such as regular, decaf, extra shots, half-caf, and ristretto contain. Customers can decide to have different kinds of sweeteners with their coffee instead of the normal sugar. The website also includes information on how people can brew their own coffee at home. Some would consider this a threat to the business, since the customers would stop coming once they know how to make coffee similar to that offered in the hotel. However, this is in line with the company’s mission. By doing this, the company shows that it is more interested in connecting with the customers, and that it is not just interested in making a profit. Moreover, the company believes that many of the customers visit the stores because of the experience they get.

CRM Implementation Process

Companies have to determine how they will achieve good customer relationship management. They have to determine the needs and wants of their customers and the methods they will use to attain them. Starbucks Coffee Singapore had to work through different challenges and problems to realize good CRM. The company used the same approach it had in America when it began operations in Singapore. It ensured delivery of high quality products, which the customers embraced. This enabled it to expand to other different areas of the country. The company has experienced gradual but impressive growth in Singapore.

The Starbucks card offers rewards to its customers and it increases convenience when making purchases. Customers feel a sense of ownership and belonging when they become members of a company. The card has enabled Starbucks company customers to have the same experience. They feel appreciated when the company invites them to different events, gives them rewards, and presents because of their membership status. In addition to the Starbucks Card, the company has also introduced a Starbucks Card eGift, which people can send to their loved ones using an iPhone application. Those who receive the card can redeem it at any local store. The company has a 30-day grace period in which someone can redeem his or her card.

Starbucks Singapore has come up with an App for iPhone, which will enable customers to perform many activities. Customers can get the application for their phones by downloading it freely. Through the application, customers can send the Starbucks Card eGift, reload their Starbucks card, get their transactional history and track their rewards, find the stores that are closest to them, and get updates about the company among other activities.

Impact of CRM on sales and marketing strategy

The Customer relationship management practices that the company has adopted have helped it to determine the best approaches to use in its sales and marketing. They have helped the company in formulation of its marketing plan. The company does not have to depend on advertising through the traditional media. It does not have to depend on newspaper and television adverts, which can be costly. The company has embraced the use of social media. It has a Facebook account, which enables it to connect with its customers and get feedback from them. Customers are free to post comments about the company’s products and services. This information is critical and essential to marketers. It enables them to know the best method to market its products and the customers to target. It is able to know the most effective channels to use in marketing and the type of promotions to offer. Customers are able to provide instant feedback whenever the company introduces new products. They can like or dislike the products through the Facebook page, and they can give more information for their choices. The company can know where to open new stores based on customers requests received through the Facebook page.

Outcome of CRM implementation

The company has been able to realize growth in performance and profitability because of its CRM practices. It has been able to identify the areas where it needs improvement. By connecting with the customers, it has been able to know what they need and desire in a coffee shop. Not only has it been able to fulfill these needs, but it has also exceeded the customers’ expectations by offering more than they requested. The company has realized growth in terms of the number of stores it has been able to open in the country. It has realized growth in terms of the customers visiting its stores. Customer loyalty has increased over the years. Although there are other coffee outlets in the country, customers prefer visiting Starbucks. They have already established a relationship with the company. The customers realize the benefits they get whenever they visit the coffee stores. They get employees who are willing to listen to them, good products, and excellent service. This has endeared them to the coffee stores and it has ensured that they keep visiting.

 In addition, the company has been able to attract new customers. When the older customers praise the company through word of mouth and social outlets such as Facebook, many people learn about it and they become interested in visiting. This way, the customers become the main marketing tools for the company. The company’s decision to treat its employees as its first customers and accord them the respect they deserve has paid off, as it experiences low turnover rates. The company has been able to identify the most effective sales and marketing strategies because of its CRM practices. Effective CRM has improved and enhanced the menu product offering. By connecting with the customers, the company has been able to identify ways of improving its products.

Conclusion & future plans of company Strategy

The company has adopted effective CRM practices. It has ensured that its customers are satisfied with the services and products offered. The company intends to build lasting relationships with its customers and to connect with them personally. This has ensured that it continues to expand geographically and grow its customer base. The CRM practices implemented has contributed to the company’s profitability. The company’s willingness to invest in technology has paid off in the end. More people have become aware of the company’s products because of the website and social media platform. The company has also benefited in other ways, which include attracting the best people to work in its stores. It is able to save a lot of money by reducing its staff turnover rate.

The company intends to continue relating well with its customers by connecting with them in different ways. It intends to keep on working with the neighborhoods and communities where it has set business locations. It aims at improving people’s lives and changing the environment positively through different conservative measures. The company will continue collaborating with other stakeholders to improve the lives of the people. In addition, it intends to continue using innovative measures and adopting technology to make the lives of their customers better. It will continue innovating ways of rewarding and appreciating its loyal customers. It will look for ways of ensuring that its customers can get the maximum benefits from their Starbucks Card. This will include making purchases of other food and beverage items using the card.

Lessons learnt

We have been able to learn a lot from the interviews conducted. We have learnt a lot about the general approach of the company, including its history, mission, values and culture. We have identified qualities that are necessary for the running of a successful company. All the people in the company do whatever they do with passion. They are committed to the realization of the organization’s goals. We have learnt that successful companies are able to continue operating because of the value they show their stakeholders. They value their customers, suppliers, distributors, and employees. We have also learnt the importance of valuing the workers in the company. They are not just there to do their daily chores. They are part of an organization and they contribute to its success. Without them, the company would not be able to realize any achievements or goals.

We have also learnt the importance of the neighborhoods and communities that surround the company. Organizations do not exist in isolation. They are part of a larger community. Therefore, they should take more initiative to ensure that they help the local people to meet their needs. Companies operate successfully when they relate well with their communities. We have learnt about the importance of involving other organizations in community projects. Some organizations have a better understanding of the local needs and they may have more resources. Collaborating with them will make community aid and development more effective. It will ensure that many individuals and groups benefit from the help that the company offers.

 Another important lesson that we have learnt concerns the importance of technology, especially social media and other technological applications. The company has used its websites to increase awareness of its products and stores, as well as connect with its customers. In addition, the use of social media has helped the company to connect with its customers and to get feedback from them. These technological tools have helped the company to save a lot of money that could have been used in advertising through the traditional media.

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