Customer Relationship Management in Starbucks: Training Program Proposal

This study proposes a training program for Starbucks to improve customer relationship management and increase sales. The program includes needs assessment, target population, learning outcomes, evaluation strategies, and projected costs and benefits.

Running head: CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
Customer relationship management in Starbucks
Name of the student
Name of the university
Author note

1CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
Table of Contents
Executive Summary.............................................................................................................2
Background and Analysis of the Business Problem/Opportunity.......................................3
Needs Assessment...............................................................................................................3
Overview of the Training Intervention................................................................................4
Target Population.................................................................................................................5
Learning Outcomes of the Proposed Training Program......................................................6
Planned Evaluation Strategies.............................................................................................7
Strategies to Facilitate Transfer of Training........................................................................8
Costs and Projected Benefits of the Program......................................................................9
Appendix............................................................................................................................10
References and bibliography.............................................................................................15

2CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
Executive Summary
In this study, it has been identified that the company named Starbucks is recently dealing
with increasing number of customer complains. Due to this reason the sales state of the company
has started declining. In this situation, it has become important to develop effective training
program so that the quality of performance of the employees can be improved. Research and
development practices have been done before the training program. Both the primary and
secondary data have been collected for gathering the information of the company. In order to
develop the training program the 100 non manager employees have been selected from different
stores of Starbucks. In the 2 months of training, different tests will be taken by the trainers for
analyzing the information and knowledge transferring capabilities of the participants. Depending
on the development needs, required steps can be taken by the authority. In the training program,
few learning outcome have been set by the trainer. On the other hand, by following the four
levels game of Kirkpatrick has been discussed. Through different stages training evaluation
process has been discussed. In this game four levels of evaluation have been discussed. By
discussing the four levels of evaluation, the study has linked with the upcoming training process.
After discussing the evaluation process, different strategic have been mentioned by following
which, the growth rate of training process can be measured. It has been mentioned in this study
that of the sales revenue and rate of profitability will be measured, it will help to understand if
the training program has brought improvement in customer relationship management or not. At
the end of this study, budget plan has been developed for the training program, depending on
which the total funding and profitability can be analyzed.

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Background and Analysis of the Business Problem/Opportunity
Starbucks Coffee Corporation is being considered as one of the popular coffeehouse
chains in US, which recently ruling the global coffee selling industry (Starbucks.com.au, 2018).
In the year 1971, the company was founded by jerry Baldwin, Gordon Bowker and Zev Siegl in
Washington. In the year 2017, the net income of the company was US$2.885 billion
(Starbucks.com.au, 2018). It cannot be denied that in the current situation, the company named
Starbucks has become one of the popular brands, however, it is also true that the due to
increasing growth opportunities in the industry, number of competitors has also increased. It has
been identified that in the current situation, increasing complaint of the customers has brought
the company in challenging situation. Due to increasing complains of the customers regarding
the service and raising price of the products, the sales rate of the company now is in the
questionable position. In this situation providing the customer relationship management training
has become necessary for dealing with the situation. On the other hand, special coaching will be
provided to the employees for developing their both the practical and theoretical skills for
workplace management. The purpose of the study is to develop a training proposal for bringing
the improvement in customer relationship management so that the level of customer satisfaction
can be increased.
Needs Assessment
An assessment process has higher level of contribution in terms of serving the diagnostic
took to determine the training needs. It is also true that lack of knowledge regarding the
workplace management is another emerging issue in Starbucks, which needs proper coaching. In
the current situation, it has been identified that due to increasing competition in the market, the
customer relationship has become one of the major concerns for the organizations. In this

4CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
situation, increasing customer complains has brought the sustainability challenge for Starbucks.
In this situation, it has become also very challenging for the company to mitigate the challenges.
Therefore, in the starting of the training program, the research program is required so that the
issues and opportunities of the organization can help in case of understanding the recent
challenges. In order to identify the needs assessment information, both the primary and
secondary research needed to be done. Both the qualitative and quantitative data collection
methods will be followed in order to conduct the plan. The secondary information will be
collected from the journal, articles and websites of the company. On the other hand, in case of
primary data collection process, both the survey and interview methods will be followed. In case
of survey, quantitative method and for the interview qualitative method has been followed. The
survey will be conducted by following the random sampling method and in case of interview, 3
managers of the company will be interviewed. It cannot be denied that in case of diagnose the
situation; observation and self assessment have higher level of contribution. By collecting the
information from the managers of Starbucks, it will be easier for understanding the loopholes of
the company. Depending on the needs, the required training and development steps will be taken.
It has been identified that if the proper training will be provided to the employees, it will be
beneficial for the company.
Overview of the Training Intervention
As the study has already mentioned that the customer complaints have become the major
concern for the company, therefore, in case of dealing with the situation customer relationship
management training program has become necessary. Both the Coaching and training program
will be proposed to the company for its improvement. Before starting the training program, total
number of 100 participants will be selected from the company. In the starting, the aim of the

5CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
training will be clarified to the participants. The training program will be divided into three parts.
Proper timing for the particular activities will be selected. The overall learning outcomes will be
divided into three parts. In this training plan social learning theory and experimental learning
theory will be followed. In order to achieve the objectives effective communicational plan will
be introduced. It is mentioned in this study that, using the four levels of Kirkpatrick game, the
training evaluation will be done. In this process the critical thinking capabilities and observation
qualities of the trainers are required. The training will be providing for 2months. Near about 8
hours of training, performance analysis of the participants will be done through different tests.
Target Population
Selecting the proper target population is important in case of developing a training
program. In case of this training program, 100 participants (non-manager) will be chosen from
the different branches of Starbucks. The new employees, who need to focus on improving their
customer service management are being targeted in case of both the coaching and training
program. Depending on the characteristics, it can be said that the audience will be selected
depending on their self assessment capabilities. Dedication and good listening skill are being
considered as the important criteria of a trainee. Using these skills, it becomes easier for them to
understand the command of the trainers. It is also true that using the dedication skills, the passion
of the trainees towards achieving the goals and objectives can be increased. On the other hand,
Eichorn (2018) stated that positive attitude and capacity for adopting are important qualities
of an intern employee. These skills help the participant to manage in every types of challenging
situation. It cannot be denied that professional communication skills and critical thinking
capabilities are also important in terms of being a good intern (Kolb, 2014). It can be believed
that these characteristics of the intended audience will help them to raise question regarding their

6CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
training needs. If the trader will be clarified regarding the needs and requirement of the trainees,
it will be easier to provide better training (Dubey, Gunasekaran & Ali, 2015). On the other hand,
it is true that using the professional communication skills, it will be easier for the audience to
adopt customer relationship development tactics.
Learning Outcomes of the Proposed Training Program
 To develop the communication skills of the employees
It cannot be denied that the effective communicational skills have higher level of
contribution in terms of customer relationship management. Therefore, by developing the skill of
the participants, if the communicational skills of the participants will be developed it will help
them to communicate with the customers properly.
 To understand the needs and demands of the customers in better manner
In the training process, using the analytical skills the participants will be able to
understand the needs and demand of the customers. This can help in terms of satisfying the needs
of the customers and increase sales rate.
 To introduce the technological advancement in customer relationship management
It has been identified that transaction related issues in Starbucks has influenced the
customer satisfaction related challenges. By introducing the technological advancement through
social media, the customer relationship can be developed.
 To improve the satisfaction of the customers so that the rate of loyal customers can be
maintained

7CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
In the training program, the opportunities and challenges of the company will be
clarified. In this process, the participants will be able to identify the causes behind the
challenges. It will help in case of maintaining the loyal customers.
 To improve the efficiency of the employees in the workplace
In the training and develop practices, communication as well as the analytical skills of the
employees’ will be improved that can help in case of increasing working efficiency of the
participants. As its result, the rate of productivity as well as availability of the customers can also
be increased.
 To expand the customer base for increasing sales rate
It cannot be denied that customer relationship has higher level of contribution in the case
of increasing the business revenue. Therefore, by providing proper training if the quality of
performance can be improved it can help to grab the attention of large number of customers.
 To develop the support and sales team for 24hrs
By developing the support team, all the quarries of the customers can be solved with in few
seconds. This will be beneficial for the company to increase customer satisfaction.
Planned Evaluation Strategies
In order to discuss the training evaluation process, the Kirkpatrick game has been
discussed. In this game four levels of evaluation have been discussed. By discussing the four
levels of evaluation, the study has linked with the upcoming training process.
Level 1

8CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
Reaction: In this stage, the reaction or opinion of the participants regarding the training program
is being collected (Kirkpatrick & Kirkpatrick, 2016). In case of this training plan, the employees
(non-manager) of Starbucks are the participants. Therefore, by collecting their opinion regarding
the training program will be beneficial in terms of understanding their needs.
Level 2
Learning: In the level 2, formal learning process is being introduced through post and pre
examinations (Chathoth et al., 2016). In this process the existing knowledge of the participants
can be analyzed. In order to conduct the training, a sheet will be provided to the employees
where basic management related questions will be written. The participants will be provided 10
minute for filling the question paper.
Level 3
Behavior: Behavioral analysis is being considered as one of the important elements in training
program (Weaver, Dy & Rosen, 2014). In this level the capabilities of the participants for
transferring the knowledge and information is being measured. In the behavioral analysis, the
participants will be provided the mixed questionnaire, and will be asked follow-up the growth
opportunities as well as issues in the workplace.
Level 4
Results: In the fourth level, the overall growth is being measured depending on the findings. In
case of this level depending on the return on investment, the organizational growth will be
measured.

9CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
Strategies to Facilitate Transfer of Training
The training aims to improve the customer relationship in Starbucks. It has been
identified that due to increasing number of customer complaints have created challenging
situation for the company. In order to measure the improvement of after the training program, if
the growth report of the company will be measured, it will be easier to understand if the sales
rate has increased or not. On the other hand monitoring the feedbacks of the customers can also
help to understand the effect of training program. In the training plan, the organization aims to
develop the customer support team for solving the quarries of the customers. In this situation it
can be said that if the rate of profitability of the company can be analyzed, it will help in terms
of measuring if the customer relationship has been improved or not. On the other hand, if the
performance quality of the participants will be monitored, it will help to understand the growth.
It can be suggested that in order to improve the customer relationship, feedbacks from each of
the participants can be taken so that the issues or opportunities can be identified.
Costs and Projected Benefits of the Program
Projected Benefits
Amount
$
Increase in sales 40000
Increase in productivity 44000
Total benefits 84000
Projected Costs

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Direct cost:
Training material costs 10000
Infrastructure cost 4000
Other direct costs 1000
Indirect costs:
Cost of temporary replacement of staffs 3000
Electricity cost 400
Other indirect costs 1000
Total costs 19400
The above table is clearly showing the fact that the projected benefit is much higher than
the projected costs. The table is showing the benefits in two areas; however, there are another
two areas that cannot be quantified. These two areas are - improvement of quality and
improvement of safety level at the workplace. Therefore, if the total cost is compared with the
total benefit, it can be stated that the management training session will be much beneficial for the
business.
Appendix
Session Plan Template
Title of Customer relationship management in Starbucks

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Session:
Learnin
g outcomes:
At the end of the session learners will be able to:
 To develop the communication skills of the employees
 To understand the needs and demands of the customers in better manner
 To introduce the technological advancement in customer relationship
management
 To improve the satisfaction of the customers so that the rate of loyal
customers can be maintained
 To improve the efficiency of the employees in the workplace
 To expand the customer base for increasing sales rate
 To develop the support and sales team for 24hrs
T
IMING
CONTENT
TRAIN
ER
ACTIVI
TY
LEARNER
ACTIVIT
Y
MATERIAL
/ EQUIPMENT /
LEARNING
RESOURCES
1
0:30 am
to 5:30
pm
1
Communicatio
nal skill development
and understand the
needs and demands of
the customers in better
manner
Trainer
will interact
with them and
show the
participants the
research
By
interacting with
each other
information and
knowledge will be
transferred
Monitor,
projector, mic, a
conference hall

12CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
0 days
evidences
1
1:00 to
6:00 Pm
1
5 days
Introduce the
technological
advancement in
customer relationship
management and
improve the
satisfaction of the
customers so that the
rate of loyal
customers can be
maintained
Modern
technological
tools will be
introduced to
the participants
and lesion
regarding
behavioural
skill
improvement
will be
provided.
Try to learn
how to access the
technological tool
and learn about the
behavioural skill.
Technological
equipment,
transaction tools and
projector
1
0:00am
to 5:30
pm
3
0 days
Improve the
efficiency of the
employees in the
workplace, expand the
customer base for
increasing sales rate
and develop the
support and sales team
Question
naire will be
provided to the
participants,
critical analysis
capability of the
participants will
be analysed.
Interperson
al skill of the
participants will be
developed.
Performance
monitoring camera,
email, computer, mic,
projector, internet,
headphones

13CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
for 24hrs.
Learning Theory:
Social learning theory is being considered as the theory that helps to learn the social
behavior. This theory helps to observe the behavior of others. Therefore, it can be said that the
social theory can help to improve the analytical skill of a person. On the other hand, experiential
learning is anther process in which the participants learn from the experience. In this case, for
dealing with the tough situation, the learner uses the previous experience to solve the problem.
Therefore, it can be said that in case of experimental learning the learner gather by knowledge by
doing. In case of this customer relationship management training plan, both the social learning
theory and experiential learning theories are important. The aim of the training plan is to develop
the skills of the employees so that they will be able to communicate with the customers. In this case
understanding the needs of the customers, the social learning theory can help to understand the
customers’ behaviour. On the other hand it is true that customer handling process is one of the
important tough processes in customer relationship management. Therefore, using the experimental
theory, depending on the previous experiences the participants will be able to understand how to
manage the difficult situation. In the training process interpersonal skill as well as performance skill
development related lessons will be provided. Hence, in order to gather the knowledge critical
understanding of the situation is required. It can be assumed that if the social and experimental
theoretical practices can be done in during the training program, it will be easier for bringing the
improvement.

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Assessment of the Session Learning Outcomes:
It has been identified that in the current situation increasing customer complaint has become
major issue in Starbucks. Due to the increasing customer complain, the sales revenue of the
company has got affected. In this situation, it has become important for the company o develop
effective training plan so that the customer relationship can be improved. Effective communication
is one of the important elements in customer relationship process. Therefore, it can be said that
through the training session, the effective communication will help the participants to interact with
the customers. In this process, the needs and demands of the customers can be analysed. On the
other hand, it is true that depending on the critical analysis of customers’ demand, the customer
support team can be able to satisfy the customers’ need. If the needs of the customers can be
satisfied, it will help to increase the customer base that indirectly influences the rate of profitability.
In order to achieve the target, the interaction with the customers through emails and others media is
required. By developing the behavioural skills of the employees, the critical analytical skills of
them can be improved. In case of introducing the advance technological tools in the workplace for
better service, the conformation regarding the technology and continuous training can help to
achieve the goal. It is true that in the training plan, it is mentioned that the support team will be
recruited for 24hrs service; hence, it can be assumed that in this process, uninterrupted customer
service can be possible for the organization.
Transfer of Training:
It is very important in every training plan to understand if the trainees are being benefited or
not. In order to measure the situation, the growth report of last couple of months can be analysed.
Depending o the sales rate and profitability, it can be measured that if the company is gaining the

15CUSTOMER RELATIONSHIP MANAGEMENT IN STARBUCKS
profit or not. On the other hand, the customers’ support team needs to be active for monitoring the
feedbacks of the customers. All the positive and negative feedbacks of the customers needed to be
analysed in proper manner. It is also mentioned that in case of developing the customer relation,
feedbacks from each of the customers needed to be collected so that depending on their analysis,
both the opportunities and threats of the company can be analysed.
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