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IN THEIR SHOES: A CHANGE IS BREWING AT STARBUCKS
Ceramic mugs, the return of cups labelled by Sharpie pen and a menu price freeze were among plans detailed by Starbucks’ new CEO, Brian Niccol, as he attempts to stem a sharp decline in customer traffic. We hear from communications experts on their thoughts on the brand’s revamp. This article is from Communicate magazine's print edition.
Nira Gale, director of communications, NAPA Auto Parts
I’m a big fan of a clear message and Niccol has really nailed it with a simple, well-defined vision that speaks to all his key audiences: the market, customers and employees. Companies that put their employees first tend to succeed and Niccol’s focus on empowering baristas puts them right at the centre of this brand revamp.
When employees feel valued, they deliver outstanding customer service. It’s clear he’s paid attention to their feedback on community and the drop in service levels. By separating mobile ordering and transforming stores back into lively destinations, Niccol also shows he knows what customers want.
Lee Grunnell, chief marketing officer, Womble Bond Dickinson UK
Niccol has explained that the brand needs to rediscover its core identity as a “welcoming coffee house where people gather”. To be successful, Niccol needs to avoid two common mistakes.
First, don't just try to replicate the past. Former CEO Howard Schultz described Starbucks as a “third place”, somewhere between work and home for people to relax. But what does that look like today?
Second, don't be tempted to veer into full-on rebrand. Starbucks arguably has — or had — some of the most recognisable brand codes in the category. These should be protected and nurtured. Get this right and Niccol could be the one to put Starbucks back on track.
Chris Reed, founder and CEO, Restless Communications
Yes, the cafés are homogenous and dated. And, unless you’re a creature of habit, you’ll suffer option paralysis each time you look at the ever-growing – and increasingly expensive – menu. And yes, the user experience in most coffee shops is robotic and impersonal.
But once you see these problems as opportunities, as Niccol does, then there is a real chance that fixing even the small things, as well as the big ones can bring customers back.
By starting with getting the culture right, and then being fixated on improving the customer experience, Niccol has a real chance at success. Maybe Niccol really is the man who can make America’s once-favourite coffee shop great again.
Sarah Cook, marketing and communications manager, The RSA
Niccol has a huge task ahead: prices are high, customer experience is poor and revenues are down. Forbes magazine reported Niccol’s biggest challenge as “fixing the bad vibe”.
Much of the current workforce won’t have been employed when the brand was at its most popular. The experience staff deliver to customers in-store is crucial; getting more productivity here delivers huge business impact.
Starbucks’ corporate communications team’s decision to use an internal town-hall to kick-start this brand reset was strategic, directly influencing key audiences without inviting commentary. Niccol can’t control the current external market perception of the brand, but his team can improve how the Starbucks workforce feels about going to work every day.