4Q. Describe the ideal Starbucks customer from a profitability standpoint.

What would it take to ensure that this customer is highly satisfied?

Ideal Starbucks customer from a profitability perspective

Number of visits Is the loyal customer who visits the store 18 times per month. These customers make up 62% of all Starbucks transactions. This is in accordance with customer satisfaction is related to loyalty.

Customer lifetime value (CLTV) When the profits generated by the customer throughout the lifetime is high. The customer perceived value is high, i.e. the difference between the customers benefits and cost is high.

Customers can be promoters of starbucks in the form of Word of mouth Act as referrals
Customer involvement to increase the quality of service

Ensure Customer Satisfaction

Increasing Value of the Customer Base Reducing the rate of customer defection Improvements to service Offer better prices/ Incentive programs Better Quality, Improve atmosphere etc Increasing the longevity of customer relationship Enhancing the growth potential of each customer Emphasized on all the 5 dimensions of SERVQUAL.