Make Your Customers PROUD – Starbucks CEO Howard Schultz

I would submit that the the number one

I would submit that the the number one characteristic in building a great

characteristic in building a great

characteristic in building a great enduring brand in any business today is

enduring brand in any business today is

enduring brand in any business today is the currency of trust trust with your

the currency of trust trust with your

the currency of trust trust with your people trust with your customers and

people trust with your customers and

people trust with your customers and obviously trust with the shareholders

obviously trust with the shareholders

obviously trust with the shareholders but in addition to that I think the

but in addition to that I think the

but in addition to that I think the rules of engagement especially for a

rules of engagement especially for a

rules of engagement especially for a bricks and mortar retailer today as a

bricks and mortar retailer today as a

bricks and mortar retailer today as a result of the Amazon effect and

result of the Amazon effect and

result of the Amazon effect and e-commerce and mobile commerce there are

e-commerce and mobile commerce there are

e-commerce and mobile commerce there are a lot less people physically shopping in

a lot less people physically shopping in

a lot less people physically shopping in the streets and in the malls in America

the streets and in the malls in America

the streets and in the malls in America and around the world today so what does

and around the world today so what does

and around the world today so what does that mean that means that every retailer

that mean that means that every retailer

that mean that means that every retailer must create a primary reason for their

must create a primary reason for their

must create a primary reason for their customers to come to their stores as

customers to come to their stores as

customers to come to their stores as opposed to just intercepting traffic the

opposed to just intercepting traffic the

opposed to just intercepting traffic the experience that we create has to be

experience that we create has to be

experience that we create has to be multi-sensory not only selling coffee

multi-sensory not only selling coffee

multi-sensory not only selling coffee creating fantastic customer service but

creating fantastic customer service but

creating fantastic customer service but also engaging the customer in an

also engaging the customer in an

also engaging the customer in an emotional way both in our stores in

emotional way both in our stores in

emotional way both in our stores in digital and ways in which we can be as

digital and ways in which we can be as

digital and ways in which we can be as relevant outside of our stores as we are

relevant outside of our stores as we are

relevant outside of our stores as we are inside a number of years ago many people

inside a number of years ago many people

inside a number of years ago many people who cover the company said Starbucks is

who cover the company said Starbucks is

who cover the company said Starbucks is has becoming a tech company because we

has becoming a tech company because we

has becoming a tech company because we became so good at creating this mobile

became so good at creating this mobile

became so good at creating this mobile application in this mobile ecosystem and

application in this mobile ecosystem and

application in this mobile ecosystem and the flywheel effect of what it meant for

the flywheel effect of what it meant for

the flywheel effect of what it meant for the bottom line the truth is we were

the bottom line the truth is we were

the bottom line the truth is we were never engaged in becoming a tech company

never engaged in becoming a tech company

never engaged in becoming a tech company but in trying to become relevant with

but in trying to become relevant with

but in trying to become relevant with Millennials and our core customers we

Millennials and our core customers we

Millennials and our core customers we had to recognize early on that we had to

had to recognize early on that we had to

had to recognize early on that we had to make significant investments in

make significant investments in

make significant investments in technology and specifically in the

technology and specifically in the

technology and specifically in the mobile application the same is true now

mobile application the same is true now

mobile application the same is true now we’re not going to become a media

we’re not going to become a media

we’re not going to become a media company but every consumer brand must

company but every consumer brand must

company but every consumer brand must have the capability to be as good in

have the capability to be as good in

have the capability to be as good in their ancillary aspects of customer

their ancillary aspects of customer

their ancillary aspects of customer touch points as they are within their

touch points as they are within their

touch points as they are within their core business and the last piece of this

core business and the last piece of this

core business and the last piece of this is we all have to answer the question

is we all have to answer the question

is we all have to answer the question what is our core purpose and reason for

what is our core purpose and reason for

what is our core purpose and reason for being and then answer the question in

being and then answer the question in

being and then answer the question in the affirmative that any of these

the affirmative that any of these

the affirmative that any of these actions or strategic points of view like

actions or strategic points of view like

actions or strategic points of view like like up standards

like up standards

like up standards does it thread back to the core purpose

does it thread back to the core purpose

does it thread back to the core purpose and reason for being and in our case

and reason for being and in our case

and reason for being and in our case we’re constantly asking ourselves will

we’re constantly asking ourselves will

we’re constantly asking ourselves will this initiative make our people and our

this initiative make our people and our

this initiative make our people and our customers proud this is not going to

customers proud this is not going to

customers proud this is not going to make Starbucks more money it’s not

make Starbucks more money it’s not

make Starbucks more money it’s not however we have been a very successful

however we have been a very successful

however we have been a very successful public company over many years

public company over many years

public company over many years performance is the price of admission

performance is the price of admission

performance is the price of admission and I think people recognize that all

and I think people recognize that all

and I think people recognize that all these things ladder up to the equity of

these things ladder up to the equity of

these things ladder up to the equity of the brand the equity the experience and

the brand the equity the experience and

the brand the equity the experience and what we’re trying to do to maintain our

what we’re trying to do to maintain our

what we’re trying to do to maintain our relevance not only in the US but in 75

relevance not only in the US but in 75

relevance not only in the US but in 75 countries around the world in 25

countries around the world in 25

countries around the world in 25 thousand stores and the question is how

thousand stores and the question is how

thousand stores and the question is how do we do that and we have to kind of

do we do that and we have to kind of

do we do that and we have to kind of reject the status quo push for

reject the status quo push for

reject the status quo push for reinvention and self renewal and also I

reinvention and self renewal and also I

reinvention and self renewal and also I think and this is important not

think and this is important not

think and this is important not everything’s gonna work and as soon as

everything’s gonna work and as soon as

everything’s gonna work and as soon as something does not work

something does not work

something does not work the answer is fail fast and move on I

the answer is fail fast and move on I

the answer is fail fast and move on I think in large part the success that we

think in large part the success that we

think in large part the success that we have enjoyed is directly linked to the

have enjoyed is directly linked to the

have enjoyed is directly linked to the fact that the lay customer today has so

fact that the lay customer today has so

fact that the lay customer today has so much information and so much insight

much information and so much insight

much information and so much insight into a company’s practices not only the

into a company’s practices not only the

into a company’s practices not only the features and benefits of their product

features and benefits of their product

features and benefits of their product or how much things cost but also the

or how much things cost but also the

or how much things cost but also the values of the company and I think

values of the company and I think

values of the company and I think there’s so many choices and we all have

there’s so many choices and we all have

there’s so many choices and we all have competition the consumer today wants to

competition the consumer today wants to

competition the consumer today wants to support those companies whose values are

support those companies whose values are

support those companies whose values are compatible with their own this year when

compatible with their own this year when

compatible with their own this year when we provided free college tuition for

we provided free college tuition for

we provided free college tuition for every single Starbucks person and we

every single Starbucks person and we

every single Starbucks person and we paid for it the level of pride and

paid for it the level of pride and

paid for it the level of pride and adulation and relationship between our

adulation and relationship between our

adulation and relationship between our customers and our partners those scores

customers and our partners those scores

customers and our partners those scores went up and our business went up now

went up and our business went up now

went up and our business went up now that wasn’t the intent but the

that wasn’t the intent but the

that wasn’t the intent but the manifestation of the things we’re trying

manifestation of the things we’re trying

manifestation of the things we’re trying to do as a company which are not all

to do as a company which are not all

to do as a company which are not all based on the bottom line over many years

based on the bottom line over many years

based on the bottom line over many years have proved to be successful and have

have proved to be successful and have

have proved to be successful and have added value to the market cap and

added value to the market cap and

added value to the market cap and shareholder value so I’m very proud of

shareholder value so I’m very proud of

shareholder value so I’m very proud of what we’re doing this is not for

what we’re doing this is not for

what we’re doing this is not for marketing it’s not for money it’s for

marketing it’s not for money it’s for

marketing it’s not for money it’s for trying to do what we think is right and

trying to do what we think is right and

trying to do what we think is right and used Starbucks scale for good