Do What Shultz did and how you could be the Starbucks of your marketplace:
Here is what happened in the Financial crash in 2007/2008;
- Customers opted for cheaper alternatives.
- Forced to Shut 600 stores
- Profit had fallen 28% by March 2008
- In 2009 they closed another 300 stores
- 6,700 employees laid off
- Howard Shultz replaced Jim Donald as returning CEO
The Shultz effect – here’s what he did to turn this situation around in 2009;
- Letter to employees ‘we must shift our focus back to the customers’
- New corporate message ‘Reigniting our emotional attachment with customers’
- Unconventional Initiative: ‘My Starbucks Idea’ to engage with clients in a more engaging way.
- More than 93,000 ideas shared by approx. 1.3 million customers (new and existing)
- Drove more the 5.5 million-page views per month off the back of this strategy.
- Starbucks implemented over a 100 of these ideas (Free Wi-Fi group, Soy-milk group, the comfy chair group, and the Frappuccino lovers’ group to name a few).
What lessons do we as sales professionals take from this and how can we help you be more Shultz;
- As business owners we must energise and re-invigorate your staff and most importantly your sales team/ fee earners
- Understanding that the message you put out there and the way you put it out there will affect your engagement levels.
- Social Media based funnels are essential in engaging new potential clients by engaging with them. This is the most power form of Lead Generation out there.
- Create a community of customers/ clients who are evangelical about you and your business.
- Understanding how a loss leading service or product can be used to upsell a far more profitable product/ service once you have the customer through the door.
- Be responsive to what your customers wants, and needs are to maintain and grow engagement and in