Tag Archives: customer service

Starbucks’ New Brew: Stirring Up the Service Model is Working

Pumpkin Spice Latte season is finally here and this year your coffee will be served with an extra shot of friendly service. When you think of Starbucks, you probably think of coffee. But according to CEO Brian Niccol, the company’s secret ingredient isn’t the latte, it’s the service. His bold claim? Starbucks’ goal is to become the “world’s greatest customer service company.”

That might sound surprising for a coffee chain, but it’s a powerful lesson in marketing strategy. Coffee is a commodity – a product you can get almost anywhere – often cheaper and sometimes better. What you can’t get everywhere is the personalized experience Starbucks is now doubling down on.

The company has rolled out its “Green Apron Service Model,” which trains baristas to focus on connection: greeting customers by name, handing off drinks with personal touches, and creating small but memorable moments. This approach reframes Starbucks from just a coffee provider to a premium service brand. In other words, Starbucks isn’t only selling hand-crafted drinks, it’s selling an experience.

Competitors like Dutch Bros and Luckin Coffee are betting on speed and price. Starbucks, on the other hand, is betting customers will pay a premium for human interaction, comfort, and a sense of belonging. Niccol is even investing hundreds of millions into training, store redesigns, and extra staffing to make this strategy work.

Starbucks is trying to win not through cheaper prices or even fancier products, but by making you feel seen, remembered, and valued. For marketers, it’s a case study in how service strategy and customer experience can differentiate a brand even if the product itself may be ordinary.

Discussion Questions and Activities

  1. Why is Starbucks focusing on service in addition to its premium products?
  2. How does customer experience create value that justifies premium pricing?
  3. What risks might Starbucks face in standardizing barista behavior through scripts and training?
  4. How do competitors like Dutch Bros highlight different service strategies?
  5. Have students check out this short video from Starbucks CEO Brian Niccol on how the coffee chain’s “back to Starbucks” strategy is boosting loyalty and engagement. https://www.instagram.com/reel/DMtOp_DpxlU/
  6. Customer Journey Mapping.  Students map the Starbucks customer journey and highlight where service interactions add value. Additionally, students research and map Dutch Bros or Luckin Coffee’s service strategy and present how it differs from Starbucks’ premium approach.
  7. Poll Students. Conduct a poll asking students if they are light users, moderate, heavy or brand advocates of Starbucks. Are they heavy users and advocates fans of the brand due to its products or the customer experience?
  8. Role Play. Pairs of students act out a Starbucks barista-customer interaction, one using a scripted model and one using improvisation. Compare which feels more authentic.

Sources:

Aten, Jason (13 Sep 2025) With Only 5 Words, Starbucks’ CEO Revealed Its Secret Ingredient (And It’s Not Coffee), Inc. Haddon, Heather (19 Sep 2025) Has Your Starbucks Barista Been Acting Especially Friendly Lately? Here’s Why. Wall Street Journal.

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“Can I help you?” Robots at Lowe’s

Lowes

It can be frustrating to wander around in a hardware store, searching for an elusive item, and without any customer service people to provide guidance. Lowe’s feels our pain and is ready to set loose a new type of customer service staff to assist shoppers. The bi-lingual, responsive, detail-oriented staff looks a little different though……. It’s a robot named OSHbot and is a product of Lowe’s Innovation Lab.

Customers can talk directly to OSHbot, have questions answered, and be guided to the spot in the store where the product can be found. OSHbot speaks multiple languages (a great boon for non-English speakers), recognizes hand gestures, and can also be used as a typical touch screen. If customers do not know the name of the item needed, OSHbot can view the item and match it with items in the store or the online database. It can even connect shoppers with off-site experts who can consult on home improvement projects.

Don’t look for OSHbot in all Lowe’s stores though. The company plans a limited rollout to test the robot in a San Jose hardware store, testing to see how people (and staff) interact with the new robot.

Group Activities and Discussion Questions:

  1. First, discuss the implications of customer service in retail stores. When is service good, not good, where, etc.?
  2. Show the video of the robot in action:

http://youtu.be/Sp9176vm7Co

  1. Additional videos and innovation can be found at

http://www.lowesinnovationlabs.com/innovation-robots/

  1. Discuss with students the barriers that might limit or prevent robotic customer service.
  2. What other stores would benefit from a robotic customer service staff?
  3. Divide students into teams. Have each team develop a protocol for a robot at a selected store. What are the functions needed? What other considerations should be accommodated?

Source: Wall Street Journal, Ad Age Daily, New York Times

 

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