What factors accounted for the extraordinary success of Struck in the early sass’s. What was so compelling about the Struck’ value proposition? What brand Image did Struck develop during this period? Factors: Environment/atmosphere Quality of the product Customer Service Employee satisfaction Specific demographic targeting An almost untapped market Value Proposition: The customer (and customer service) above all else. Coffee drinking as an experience ‘Coffee culture’ Emotional benefits of drinking coffee Brand Image: Customer-centric 2. Why have Struck customer satisfaction scores declined?
Has the company’s service declined, or is it simply measuring satisfaction the wrong way? Why? Customers are evolving and expecting more Declining level of service Change In atmosphere Increase In competition Measuring satisfaction the wrong way? Subjective way of obtaining results o Leaves many questions Growth from 140 stores to 4000 stores Change in atmosphere. Less intimate. Customers viewed Struck much differently in 2002 (seeing Struck as more corporate). ; More sales complexity/diversity in 2002 Different demographic profile o In 2002, the average customer was younger, less affluent and less educated .
Describe the ideal Struck customer from a profitability standpoint. What should it take to ensure that this customer is highly satisfied? How valuable is a highly satisfied customer to Struck? Ideal: Loyal, repeat customer who is highly satisfied Visits 18 times per month What should it take: Follow through on its value proposition Better service ; Increase/emphasis on factors listed above in IQ How valuable (Ideal): $4. 42 on average per visit Average customer life 8. 3 years $954 per year $7924 over average customer life How valuable (highly satisfied): 7. Visits per month 381 year $3169 lifetime 5. Should Struck make the $40 million investment in labor in the stores? What is the goal of the investment? Is it possible for a mega-brand to deliver customer intimacy?