Based on Jeof's upcoming book about Customer Experience companies and how they change products, markets, and people's lives (Published by Brigantine Media). Social media is an important part of product development and customer experience. Why not use it to your advantage? We'll discuss- -From Buyer Beware to Supplier Beware -- social media has given tremendous power to the buyer. - How Starbucks first used social media to reinvent its customer experience helping the company turnaround. - Where did Starbucks' idea for using social media come from? - How did the customer experience change for the better? - What do the lessons from Starbucks mean for companies small and large? - Avoid the most common and costly mistakes made in using social media - Why a presence on Facebook or Twitter does not always mean effective use of social media - What should an effective social media strategy begin with? Join Jeofrey Bean at ProductCamp SoCal 2011 for this engaging and practical discussion about how the best companies, large and small, use social media effectively to build meaningful relationships and contribute to the bottom line.

1. Starbucks, Social Media and the
Starbucks, Social Media and the
Customer Experience Renewal
Social media helped Starbucks turnaround and what it means for you
Social media helped Starbucks turnaround and what it means for you
October 15, 2011
Jeofrey Bean
Based on a chapter from the upcoming book
The Customer Experience Revolution
Th C t E i R l ti
by Jeofrey Bean and Sean Van Tyne
Published by Brigantine Media
www.CXRevolution.com
CXR l ti

2. Customer Experience and User Experience Defined
Customer Experience (CX) ©Jeofrey Bean and Sean Van Tyne
All interactions people have with or about a company’s
messages, people, processes, products or services from
potential customer to customer to advocate.
User Experience (UX)
A person’s experience directly interacting with a
company s
company’s products or services The proof point that
services.
promises made are true.
Social Media
Takes the experience from buyer beware to supplier
beware
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3. Starbucks streak was really over. For 15 consecutive years Starbucks top line
growth reached at least 20% each year. It was 2008, the year that the
company lost over 50% of its operating income and its operating margins.
(2008 annual report. Form 10‐K)
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4. Employees, shareholders, and customers of Starbucks
would be hard pressed to imagine in the midst of Starbuck’s
free fall in 2008 that in less than 12 months Starbucks
f f ll h l h h b k
would be headed for sustainable growth again while the
rest of the world searched for the bottom of the recession.
But that is exactly what happened.
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5. Central to the Starbucks experience strategy was to
make each store a customer’s ‘favorite third place’ after
home and work
2007 was the first time ever that customer traffic at
2007 was the first time ever that customer traffic at
Starbucks stores declined in the U.S.
The experiences customers were having with Starbucks
The experiences customers were having with Starbucks
were far less engaging than ever
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6. Computers and Coffee: The Dell Factor
Computers and Coffee: The Dell Factor
Dell Hell – Jeff Jarvis and Michael Dell
Dell quickly became an innovator with social media
Dell quickly became an innovator with social media
Direct2Dell BLOG
IdeaStorm.com in February 2007
Dell and Schultz exchanged ideas
Both returned for turnarounds
Starbucks version would encourage customers to submit
ideas
The main job was to host and inspire discussions
based on ideas that customers submitted
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7. Concerns and Internal Debate
Why host discussions? Why not?
People will have customer experiences with your company, its
People will have customer experiences with your company its
messages, products or services regardless of whether you are
hosting it or not [Sean Van Tyne, Corporate UX Maturity: A Model for Organizations, User Experience Magazine,
Volume 9, Issue 1, 2010]
Volume 9 Issue 1 2010]
How would an appropriate and genuine connection with
people be made with social media?
Few companies have the resources to dedicate people…
Allow the community to vote on which posts to make a high
Allow the community to vote on which posts to make a high
priority. People could vote on each others’ ideas. The site
would still require monitors to do this effectively
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8. “The experience for visitors to the site needed to be consistent
with the Starbucks experience. It needed to be as fun as it was
engaging and most of all encourage more customers to share
engaging and most of all encourage more customers to share
their thoughts and visit Starbucks stores.”
When Schultz returned as CEO in January 2008
When Schultz returned as CEO in January 2008
“We started to lose sight of our focus on the customer and our
commitment to continually and creatively enhance the
Starbucks Experience.” (Starbucks 2007 Annual Report)
The Starbucks experience and creating sustainable value
would be the focus from that point on.
ld b h f f h i
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9. This new social technology platform would not have a blog or,
This new social technology platform would not have a blog or
at first, not be linked with Facebook or Twitter.
It was a deliberate effort to avoid the typical social media
approach of having 12 Facebook pages and 15 Twitter
accounts.
They wanted desperately to avoid the most common and
costly mistake made in using social media which was . . .
costly mistake made in using social media which was
It would be a live feed of everything being posted including
ideas, what other people’s ideas have been, ideas and actions
taken by Starbucks. [Matthew Guiste Global Social Media Director –
Starbucks, Open Innovation & Social Media. Sep 29, 2010 ]
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10. On MyStarbucksIdea.com
On MyStarbucksIdea com
Ideas are categorized into products, experience and
involvement ideas
There are displays for Ideas so far, leader board, Ideas in
p y , ,
Action, Most Recent Ideas
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11. http://mystarbucksidea.force.com/ October 3, 2011
The markings of the status of people’s
g p p
submissions are important feedback for
personalizing the experience people have with
MyStarbucksIdea.com. The status includes Under
MyStarbucksIdea com The status includes Under
Review, Reviewed, In the Works and Launched.
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12. http://mystarbucksidea.force.com/ October 3, 2011
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13. By March 2008 MyStarbucksIdea.com was ready to show
Within two months, 41,000 idea submissions and voting,
customers would help reshape and energize the experience
Two outstanding points, that would become critical to
Starbucks turnaround‐
1 Customers wanted more for their money
2 They wanted to be rewarded for their frequent
purchases. (Onward, Howard Schultz w/Joanne Gordon, ©2011 Rodale Press,
p142, 166)
p142 166)
Schultz carried these forward as the company remade its
products, services and the experience
products services and the experience
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14. 2009 ‐ True transformation: Improve Customer Experience,
Differentiate and Innovate
The new offers and loyalty card program based on the people’s
ideas from MyStarBucksIdea.com were helping to lead the
ideas from MyStarBucksIdea com were helping to lead the
transformation to revitalize the customer experience and
profitability (Starbucks 2009 Annual Report)
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15. What should an effective social media strategy begin with?
The best experience companies large and small base effective
The best experience companies large and small base effective
social media strategies on developing meaningful customer
relationships, giving people valuable experiences and important
contributions to the bottom line.
t ib ti t th b tt li
They apply what they learn from social media to many aspects of
their business including product, service and experience
development.
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16. Bean’s Notes
MyStarbucksIdea.com ‐ As of the end of May 2011, over 250,000 people, signed
up, 109,000 ideas have been posted and over1 million votes.
Facebook and Twitter were added later MyStarBucksIdea.com was the first step
to connect with customers outside the stores. After that, the company
to connect with customers outside the stores After that the company
strategically added Facebook and Twitter.
The company uses Twitter primarily by following what gets posted about
Starbucks as a way to understand reaction to Starbucks. There are exceptions
when Starbucks does the Tweets, but it is not normally how the company uses
Twitter
Guiste comments on this “We let everyone else do that for us. It’s kind of a
shortcut. Especially if you do not have the resources of a large company but you
want to know and get the heads‐up of what’s going on, follow Twitter very
carefully. Set up something that shows things that you care about and [the
f ll h h h h h b d[ h
appropriate] key words. And just monitor that.” Starbucks has two or three
people that monitor those sites. Guiste and his team have yet to see something
p
that was on Twitter that was a surprise. [Matthew Guiste Open Innovation & Social Media. Sep
[ p p
29, 2010 http://www.youtube.com/watch?v=pjNM8drAqG0]
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17. Jeofrey Bean
Jeofrey Bean is the author of the book ‘The Customer Experience Revolution’ with Sean
Van Tyne. He is an engaging speaker and an expert in building valuable differentiation
with marketing, product development and customer experience leadership. Jeof is
known for making the seemingly complex easy to understand.
known for making the seemingly complex easy to understand.
He is the Founder and Principal of Del Mar Research & Consulting, LLC, and a sought after
speaker and insightful advisor to companies wanting to increase the certainty and
effectiveness of their business decisions and new opportunities. Jeof’s experience spans
ff i f h i b i d ii d ii J f’ i
strategic to tactical with small innovative businesses and dynamic Fortune 500 companies
including ComplianceMAX, ProMediaTel Wireless, I Drive Safely.com , LPL Financial, AT&T,
Sprint and Quest Diagnostics.
p Q g
Jeof Bean | Principal | Del Mar Research & Consulting, LLC | 858‐334‐9266
JBean@DelMarResearch.com
www.DelMarResearch.com
www.CXRevolution.com
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