Customers don't always know what they want. The decline in coffee-drinking was due to the fact that most of the coffee people bought was stale and they weren't enjoying it. Once they tasted ours and experienced what we call "the third place" ... a gathering place between home and work where they were treated with respect.. they found we were filling a need they didn't know they had.
Interpretation
Customers often lack awareness of their true needs, which can be addressed through better experiences.
In this quote, Howard Schultz highlights the concept that consumers may not always recognize what they truly desire until they encounter an offering that surpasses their expectations. He illustrates this through the decline in coffee consumption due to subpar experiences with stale coffee, and how introducing quality coffee in a welcoming environment created a new demand for a 'third place' where individuals could socialize and feel valued between home and work.
In practice
This quote can be used in a business presentation about customer experience.
The rules of engagement around building a brand have changed significantly over the past 10 to 15 years. Where companies at one time could spread their message through traditional marketing, consumers now seek an enduring emotional connection with the companies they patronize. The foundation of that connection is the most important characteristic of building a world-class brand: trust. Trust with your people and trust with your customers.
The future of America is not an entitlement. We have been given a treasure chest of gifts and opportunities, but some people are being left behind, and success is not sustainable unless it is shared.
Starbucks is not an advertiser; people think we are a great marketing company, but in fact we spend very little money on marketing and more money on training our people than advertising.
While their service is ending, our responsibility is just beginning!
In life, you can blame a lot of people and you can wallow in self-pity or you can pick yourself up and say listen, I have to be responsible for myself.
When I first discovered in the early 1980s the Italian espresso bars in my trip to Italy, the vision was to re-create that for America - a third place that had not existed before. Starbucks re-created that in America in our own image; a place to go other than home or work. We also created an industry that did not exist: specialty coffee.
Marketing is too important to be left to the marketing department.
A company shouldn't get addicted to being shiny, because shiny doesn't last.
Why do eight out of ten new consumer products fail? Sometimes because they are too new. The first cold cereals were rejected by consumers. More often new products fail because they are not new enough.
If you have a business model that relies on customers being misinformed, you better start working on changing your business model.
When we first started our internet company, 'China Pages', in 1995, and we were just making home pages for a lot of Chinese companies. We went to the big owners, the big companies, and they didn't want to do it. We go to state-owned companies, and they didn't want to do it. Only the small and medium companies really want to do it.
Growth makes so many dimensions of management easier. It's when growth stops that things get tough.
Subscribe for the occasional hand-picked quote. No noise.