Brian Niccol may have inadvertently launched the largest Voice of the Customer program in Starbucks history.
The coffee chain’s CEO has been in the hot seat for more than a week following an interview with the Wall Street Journal in which he described purchasing nine-dollar beverages as, in some cases, “a really affordable premium experience.”
It’s important to understand how Niccol was teed up for this comment.
The reporter noted the economic pressure consumers are under, and asked whether it wasn’t affecting Starbucks’ business.
The point was clearly to put Niccol on the defensive.
Here’s what he actually said:
“What we’re seeing is people, you know, they want to have a special experience. And regardless of what your income level, you know, a $9 experience does feel like you’re splurging. And then what that means is, we have to make it worthwhile.”
He went on to point out other aspects of that experience beyond the beverage itself, such as the atmosphere, good seating and having a human connection with a barista.
A quick reality check from an admitted Starbucks fan boy
Let me pause here, because as a freelance writer this is an area where I can speak with relative authority.
I probably go to about six (or more) coffee shops each week.
Maybe half of those are Starbucks locations. Usually different ones.
On a consistent basis I experience:
- Smiles and a friendly greeting from staff from the moment I walk in the door, and often as I leave.
- Décor that feels on brand but is often varied from one location to the other, to the point I will make the trip based on my desire for a particular atmosphere.
- Cleanliness, almost always.
- An app that actually works, where it’s easy to redeem points.
You could argue that these elements should be part of the standard experience of every coffee shop, and you would be right.
However it is by no means standard, and Starbucks still charges less for a basic coffee (which is what I buy) than any other chain or independent location I patronize.
‘Worthwhile’ takes ongoing effort
The smartest thing Niccol said (and which has been shared the least) was “we have to make it worthwhile.”
Good CX leadership recognizes that the bar needs to be continually raised. Starbucks’ decision to reverse course on turning many locations into grab-and-go pickup spots suggest to me Niccol and his team are doing that.
The disconnect happens by suggesting that a nine dollar drink is a premium experience. It not.
Visiting Starbucks (at least to fans like me) is the premium experience, at least vis-a-vis many other coffee chains. The nine dollar drink is a premium product to be enjoyed within the context of that experience.
I think Niccol was really arguing two things:
First, that what’s considered a “splurge” is quite relative depending on your income.
Second, that offering an overall premium experience may open customers up to investing in a higher-priced product. The latter point is the premise of countless appeals to focus on CX in the first place.
The viral nature of the WSJ interview and the backlash just shows you that CX is a subject that doesn’t necessarily lend itself to quick sound bites.
It’s the kind of topic you might be better to discuss with someone at length. Maybe over a nice cup of coffee.