The Growing Influence of Online Social Shoppers

Who do consumers trust?

eMarketer, April 7, 2008 — According the Edelman “Trust Barometer,” consumers feel the most credible source for information about a company—and by inference, products— is a “person like themselves.” Now with social shopping sites, product blogs and online ratings and reviews, consumers have the means to communicate their opinions about products and companies to tens of thousands of other consumers “like themselves” at a critical point in the sales cycle—the beginning.

Starbucks Unveils New Strategic Initiatives To Transform and Innovate the Customer Experience

Also Announces Acquisition of The Coffee Equipment Company and its State of the Art Clover® Brewing System

Starbucks Corporate Site, March 20, 2008 — With more than 6,000 shareholders in attendance, Starbucks Coffee Company (NASDAQ: SBUX) today unveiled a series of innovative customer-facing initiatives at its Annual Meeting of Shareholders. Howard Schultz, chairman, president and ceo, shared his vision for transforming the Starbucks customer experience and reinforcing a strong foundation from which to grow. The announcements marked the next stage of Starbucks transformation following nearly three months of passionate work that began with Schultz’s return as ceo on January 7.

Retailers Harness Digital Media for In-Store Experiences, Product Sampling†

Also Re-evaluating How to Deliver the Sunday Circular Through Mobile, Web

Advertising Age, March 19, 2008 — When it comes to retail spaces, marketers have perhaps the best opportunity to tie digital-marketing experiences to physical-marketing experiences. And marketers are experimenting with morphing circulars into mobile formats, implementing social media into in-store experiences and using technology to promote product sampling. In some cases, these technologies can be considered media in their own right.

Customers Disappointed By Web Sites, Online Customer Service

MediaPost Publications, March 5, 2008 — WHEN IT COMES TO WEB recourses, consumer-centric companies are still failing to meet expectations, according to a new study of nearly 1,000 such companies and online shoppers.

Just 44% of consumers believe the information available on most company's Web sites meets their needs, found the study conducted by InQuira, a developer of automated self-service applications for Web-based sales and services, and research firm ServiceXRG.

And it's not for lack of trying, as a full 74.5% of consumers indicate that they use company sites to get information about products or services.

A C.E.O. Sells the Store

New York Times, March 1, 2008 — Women’s suits. Mickey Drexler has women’s suits on the brain.

It’s a Tuesday afternoon in SoHo in Manhattan, and Millard S. Drexler — Mickey, as he is universally known — is in a Madewell store looking for customers he can talk to. Mr. Drexler, as you may know, is the chief executive of J. Crew — a job he took in 2003 after being summarily bounced from the Gap, the company he had led for 16 years, transforming it in that time from an $800 million midsize retailer into a $14 billion Goliath. Madewell, which he’s visiting today, is a brand-new J. Crew offshoot that sells hip, casual clothes. It’s a little like the way Mr. Drexler started up Old Navy to offer clothes that were less expensive than the Gap’s.

This visit is not some stunt... continue reading

Starbucks Takes a 3-Hour Coffee Break

Starbucks temporarily closed stores as it retrained workers and tried to revive “the romance of coffee.”

New York Times, February 27, 2008 — At Starbucks stores across the country on Tuesday night, it was time for the corporate version of re-education camp.

In its campaign to revive the intimate, friendly feel of a neighborhood coffee shop, Starbucks orchestrated the closing of 7,100 of its American stores at precisely 5:30 p.m. for a three-hour retraining session for employees

Starbucks Retraining Strategy: Is It A Rash Or Brash Move?

REACTION TO THE UNUSUAL MOVE taken by Starbucks, to close for three hours next Tuesday for barista retraining is making for interesting dialog in the marketing world.

MediaPost Publications, February 22, 2008 — In particular, the entries on starbucksgossip.com make for lively reading, from current and former baristas, including one who asks: "Any baristas out there who resent this 'training session' or feel insulted somehow? As in, 'tell us something we don't know!' Unless entirely new methods of preparation are introduced, aren't you feeling like this is just a PR move? Somehow I imagine the three-hour training will be mainly a three-hour break."

Consumer Vigilantes

Memo to Corporate America: Hell now hath no fury like a customer scorned

BusinessWeek, February 21, 2008 — In the annals of customer service, 2007 will go down as the year fed-up consumers finally dropped the hammer. In August a 76-year-old retired nurse named Mona Shaw smashed up a keyboard and a telephone in a Manassas (Va.) Comcast (CMCSA) office after she says the cable operator failed to install her service properly. During her first visit to the branch outlet, the AARP secretary says she was left sitting on a bench in the hallway for two hours waiting for a manager.

Pace-Setting Zara Seeks More Speed To Fight Its Rising Cheap-Chic Rivals†

Wall Street Journal, February 20, 2008 — Zara stores have set the pace for retailers around the world in making and shipping trendy clothing.

Now Pablo Isla, chief executive of parent company Inditex SA, says Zara needs to speed up.

As rivals catch up, Mr. Isla is attempting one of the fastest global expansions the fashion world has ever seen, opening hundreds of new stores and entering new markets.

The Best And Worst Companies For Customer Satisfaction

Forbes, February 20, 2008 — When tumbling home values and high gas prices already have consumers spending less at stores, car dealerships and airline ticket counters, how does a company minimize the pain?

One way is to offer superior customer service, the better to compete for the fewer number of dollars out there, and set yourself up with loyal customers for the inevitable economic rebound. A new report finds a lot of companies like Wal Mart (nyse: WMT - news - people ) and Home Depot (nyse: HD - news - people ) seem to have a different plan.