Analysis of After-Sales Services for Starbucks Customer Retention

This research project delves into the significance of after-sales services in fostering customer loyalty, using Starbucks as a case study. The project begins with an introduction outlining the importance of the research, its aims, objectives, research questions, and a time scale for completion. A literature review explores the effectiveness of after-sales services in achieving customer satisfaction, their impact on enhancing organizational performance, and their relationship with customer loyalty. The methodology section outlines the research design, data analysis methods, research approach, data sampling techniques, and ethical considerations. The data analysis section presents thematic interpretations of the findings. The project concludes with recommendations for Starbucks to enhance its customer retention strategies. The research investigates customer satisfaction, loyalty, and the competitive advantages gained through effective after-sales services. The project also covers the impact of after-sales services on enhancing the organization's performance, and how Starbucks can achieve strong positions in the market by providing good customer service. The research also includes the time scale and work plan for the project, and also ethical considerations.

RESEARCH
PROJECT

Table of Contents
TITLE: To analyse the significance of after sale services in order to retain customers Loyalty. A
case study on Starbucks...................................................................................................................1
CHAPTER 1 – INTRODUCTION..................................................................................................1
1.1 Introduction...........................................................................................................................1
1.2 Significance of research........................................................................................................1
1.3 Aims and Objectives of Research.........................................................................................2
1.4 Research Questions...............................................................................................................2
1.5 Time Scale.............................................................................................................................3
CHAPTER 2 – LITERATURE REVIEW.......................................................................................4
2.1 Effectiveness of after sales services in order to achieve customer satisfaction....................4
2.2 Impact of after sales services on enhancing organisation performance of Starbucks...........4
2.3 Relationship between sales services and customer loyalty...................................................5
2.4 Different ways by which Starbucks can achieve strong positions at market places.............5
CHAPTER 3 – RESERACH METHOGOLOGY...........................................................................6
3.1 Introduction...........................................................................................................................6
3.2 Research design.....................................................................................................................6
3.3 Data Analysis........................................................................................................................6
3.4 Research approach................................................................................................................6
3.5 Data sampling........................................................................................................................6
3.6 Ethical consideration.............................................................................................................7
CHAPTER 5: CONCLUSION AND RECOMMENDATION ......................................................8
5.1 Conclusion.............................................................................................................................8
5.2 Recommendation...................................................................................................................8
CHAPTER 4 – DATA ANALYSIS................................................................................................9
4.1 Introduction...........................................................................................................................9
4.2 Thematic interpretation.......................................................................................................11
REFERENCES................................................................................................................................1

TITLE: To analyse the significance of after sale services in order to retain customers Loyalty.
A case study on Starbucks.
CHAPTER 1 – INTRODUCTION
1.1 Introduction
Each business is focusing on providing effective sales services to all their customers in
order to retain their loyalty and satisfy them. After sales services are related with those process
where measures are adopted in order to satisfy the customers so they will enhance their overall
sales and profitability ratios. Customers are the main assets of every business who are making
them achieve success in their operations by consuming their products. All the sales persons at
Starbucks are working in order to satisfy clients so they will not buy coffee products from rivalry
firms. After sales services are most vital concepts for firms as they are beneficial in order to
achieve competitive gains thus their images will be enhanced at market places. This factor is in
turn valuable for them as they can do brand positioning of their products thus their profitability
ratios will also be enhanced and they can develop plan in order to expand their overall business
operations all around UK (Chesbrough, 2011). The customers are analysing the products and
then they are taking decisions in order to purchase the final products. Starbucks are organising
after sales services in order to increase their current demands as customers will be satisfied with
the services so they will spreading positive word of mouth.
All the activities of research are carried out in the specific ways that are designed for
them so that their results will be achieved in specific and planned ways. Investigation is done by
various researcher in order to evaluate the significance of research. Questionnaire is also
formulated in order to develop measures so that opinion of customers can be gathered. Data
analysis are done in which decision of Managers will be considered effective.
1.2 Significance of research
Each research activities are having their own condition in which they had to carry out all
their business operations in ethical and planned manner. The important of after sales services is
related with satisfying customers and retain their loyalty in order to move the business in right
directions thus they will also achieve success in gaining competitive advantage. Starbucks are
mainly focusing on conducting research activities so they can evaluate that their after sales
services are very much effective so they can enhance their overall profitability ratios. There are
different aims and objectives designed for this research so that their task will be achieved in

desired time frames that have been allotted to them. The firms will achieve success in their
operations if they are focusing on taking feedback from customers and solving their problems in
order to achieve success and growth in their business operations.

1.3 Aims and Objectives of Research
Employees are the most essential parts of every business organisation as they are buying
their products thus their sales and profitability ratios will also be enhanced. The main aim of
research are linked with executing all the activities of the research in right directions so they will
achieve success in their business operations.
Aim: “To analyse the significance of after sale services in order to retain customers Loyalty”. A
case study on Starbucks.
Objectives: The research objectives are helpful for the researcher in order to evaluate the best
outcomes which are based on the outcomes which have been gathered from the research
activities. The major research objectives are described below below as:
 To analyse effectiveness of after sales services in order to achieve customer satisfaction.
 The identify impact of after sales services on enhancing organisation performance of
Starbucks.
 To identify relationship between sales services and customer loyalty
 To recommend different ways by which Starbucks can achieve strong positions at market
places
1.4 Research Questions
The research questions are prepared on the basis of research objectives and these are most
important factor for researcher so they carry out their findings based on the research topic.
1. How to analyse effectiveness of after sales services in order to achieve customer
satisfaction.
2. What is the impact of after sales services on enhancing organisation performance of
Starbucks.
3. What is the relationship between sales services and customer loyalty
4. What are the different methods by which Starbucks can achieve strong positions at
market places
1.5 Time Scale
The project managers should develop plans so they can carry out the research in desired
times that have been allotted to them. The responsible authorities should develop plans in order
to make plans for completing their research operations. In order to successfully complete this

project there is action plan and time lined designed and it is beneficial for the employees so they
will carry out their working in desired time that have been allotted to them.

CHAPTER 2 – LITERATURE REVIEW
2.1 Effectiveness of after sales services in order to achieve customer satisfaction
Customers are the most essential part of every business thus Starbucks should focus on
developing plans by which they can be satisfied thus their loyalty can be achieved and they will
enhance their overall profitability ratios. If firms achieve success in their after sales services
programmes then it results in increasing their sales ratios and they will manufacture products
more effectively. According to the study of Eid, (2011). Each business organisation should
conduct research in order to identify those tools by which their customers will be easily satisfied
and for this they also have to spend large sum of money. If customers receives the promised
services as it was agreed to them when they were buying the products then it results in satisfying
needs and wants of customers and they will spread positive word of mouth and this results in
establishing their strong images ta market places.
The activities of after sales services are beneficial in order to add good experiences for
people thus they will recommend others to buy their products as they are very much effective.
Starbucks are mainly focusing on fulfilling expectations of customers in order to retain them for
long time so they will not buy products from their rivalry firms.
2.2 Impact of after sales services on enhancing organisation performance of Starbucks
Each business is mainly focused on identifying tools tools which are useful for them in
order to enhance their overall sales and profitability ratios. After sales services are also valuable
tools which are used by firms in order to attract customers and retain their loyalty aspects thus
Starbucks will earn high profits and revenues from their overall business operations. According
to study of Jahanshani (2014) after sales services are useful tools in order to enhance
performances of business by retaining satisfied customers as the customers are happy with the
products and the services which are offered by them thus it results in establishing their strong
brand images and customers will buy products from these firms thus there sales will be
enhanced and they will achieve growth and success in their overall business operations. The
impact of after sales services are related with developing strong bond of relationship between the
customers and the products & services which are offered by them. The responsible sales
executive show listen to all the problems which are faced by customers and develop plans in
order to resolve them so they will earn their confidence and in this way the overall performance
and profitability of firms will be enhanced.

2.3 Relationship between sales services and customer loyalty
Each firms are having their main focus on developing strong and effective relationship
with all their potential customers in order to enhance their overall sales and profitability ratios
and achieve loyalty of all their customers. According to the views of Jasmand, Blazevic and
Ruyter, 2012there is an effective relations between after sales services programmes and retaining
loyalty of all the customers. If firms are making plan in order to deliver the best and effective
after sales services thus it result in achieving their trust and confidence so they will not buy the
goods from their rivalry firms in any case. This is beneficial in order to make strong bonds with
customers so they will enhance their overall sales and also profitability ratios. Loyalty is also
described as the action taken by customers in order to spread positive word of mouth about their
products which are offered by them. In order to enhance loyalty among all the customers the
suppliers should work on providing direct benefits to all their customers in order to gain their
trust thus they will not buy goods from the rivalry firms.
Good relations are useful for Starbucks in order to increase their overall revenues and
profitability factors so they will achieve success in their operations and it will also them to
develop strong images at market places and they will achieve competitive gains.
2.4 Different ways by which Starbucks can achieve strong positions at market places
There are different ways which which are valuable for firms in order to achieve strong
positions at market places are evaluated below as:
Retaining satisfied and value added customers: If firms want to achieve strong
positions at market areas then they had to develop plans by which they can achieve satisfied
customers who will buy their offered products and services. This is beneficial for them in order
to develop strong images at market places and gain satisfied and value added clients who will
spread positive word of mouth thus they will achieve success in establishing strong images at
market places.
Discounts and offers: The business can establish strong positions if they are able to
achieve trust of all their customers and Starbucks can achieve growth and success in this if they
are developing plans in order to provide good to their potential clients at discounted prices. This
si the strategy used by firms in order to gain attention of customers and they will also retain their
loyalty thus developing their strong imagers at market areas and also enhancing their overall
sales and profitability ratios.

CHAPTER 3 – RESERACH METHOGOLOGY
3.1 Introduction
Research is based on various plans and strategies and all these are working together in
order to complete all the activities which are related with research in effective and right
directions. This in turn is also valuable in order to achieve all the desired aims and objectives of
business in effectual manner. The research methodologies are designed for Starbucks on the
topic of identifying effectiveness of after sales services in order to achieve customers loyalty.
Different plans and policies had to be developed by which they can satisfy their customers and
retain their loyalty.
3.2 Research design
This is the most important and effective part of research which states the directions in
which all the research activities have to be executed. The different types of research design
includes experimental, exploratory and descriptive research design. In the current research
descriptive designs are used as they are valuable in order to collect effective informations for
their research operations.
3.3 Data Analysis
There are mainly two types of research which are applied by the researcher in order to get
the best and effective outputs from the research activities. In order to get the best and effect
outcome researcher is using both Primary and Secondary sources of data and they are beneficial
in collecting relevant data. The primary methods are useful for conducting data analysis and the
secondary form of data are used in order carry our research methodologies in effective and
planned ways thus they will attain success in their overall business operations.
Primary data collection method: It is important to make tabulation plan based on questionnaires
design in order to gain effective outcomes. Researcher used this method for analysing first hand
information that increase reliability of data's which help to improve quality of result. Researcher
observed and collected information directly from their first hand experience. The main method
for collecting primary data are interview, case studies, questionnaires, focus group, diaries,
critical incidents, portfolios and observation or many more. Data is generally qualitative and
quantitative in nature. In questionnaires, two type of question are used open ended and close
ended. The open ended question can be qualitative in nature. Close ended question may be
quantitative in nature.

Secondary method of data's collection: In this method, the information and relevant data is
already available which analysed by some one else. Researcher used secondary data collection
method for for resources like time and money. Some common sources of these information are
books, journals, publish and unpublish data, magazine, trade journals, newspapers, internet and
many more. In this research report qualitative information are collected for draw a valid
conclusion.
3.4 Research approach
In the current report the research person have used inductive form of research as they are
the overall working is carried out on the qualitative forms so that appropriate facts and figures
can be identified which are useful for research operations.
3.5 Data sampling
The data sampling is referred to as those methods which are used by firms in order to
collect the samples from the overall population which is present in the economy. This is further
divided into two parts that is probabilistic and other is non probabilistic sampling method. In this
research the investigator have used purpose sampling as they useful in collecting actual data. In
the current research 40 respondents are taken in order to know their views about the offered
products and services of firms.
3.6 Ethical consideration
This is also one of the most important factors of research. The investigator should ensure
that all the personal informations of customers should be kept safely and these should not
revered to any other persons without their permissions. All the desired goals and objectives of
firms should be collected in right directions in order to achieve effective results for research. The
difficulties which are faced by researcher are shortage of time and money thus they had to be
more focused on completing their project in the desired time that have been allotted to them.

CHAPTER 4 – DATA ANALYSIS
4.1 Introduction
Data analysis are the most vital factors as they are helpful in order to develop right
directions in which all the activities will be carried out thus researcher will attain growth and
success in their overall business operations. All the aims and objectives are achieved by applying
tools and techniques which are beneficial for them in order to achieve success in their operations.
Questionnaire
Q1 After sales services are beneficial factors in order to retain loyalty of
customers?
Frequency
 Yes 35
 No 5
Q2 What are the tools by which Loyal customers can be attained by
firms?
Frequency
 Discount prices 15
 Gift Vouchers 9
 Effective services 6
 Quality products 10
Q3 What are the benefits of after sales services? Frequency
 Enhancing profitability ratios 8
 Gaining satisfied customers 15
 Differentiation 10
 Customer retention 7
Q4 What are the products which are offered by Starbucks? Frequency
 Coffee beverages 10
 Baked Goods 5

 Sandwiches 18
 Smoothies 7
Q5 What are the after sales techniques used by Starbucks to gain loyal
customers?
Frequency
 Feedbacks 8
 Annual Maintenance Contract 11
 Exchange / Return 12
 Customer support 9
Q6 Retaining loyal customers helps in enhancing sales and profitability
of firms?
Frequency
 Agree 38
 Disagree 2
Q7 Satisfied customers helps in developing strong images of firms at
market places?
Frequency
 Yes 35
 No 5
Q8 Are you happy with the offered products and services of Starbucks? Frequency
 Happy 39
 Not happy 1
Q9 Rating which can be given to offered products and services of
Starbucks
Frequency
 * star 12
 ** star 10
 *** star 15
 **** star 3

Q10 Recommendations for making improvements in offered products
and services of firms so they can satisfy needs of customers.

4.2 Thematic interpretation
Theme 1: After sales services are beneficial factors in order to retain loyalty of customers?
Interpretation: The above graph states that mostly all the customers were satisfied with
the products and services which are offered by firms as 35 out of 40 respondents are in favour of
this aspects and 5 are not in favour.
Yes No
0
5
10
15
20
25
30
35
35
5
Column B

Theme 2: Tools by which Loyal customers can be attained by firms?
Interpretation: From the above report it has been evaluated that firm,s can achieve loyal
customers by selling their products at discount prices as 15 out of 40 respondents are in favour of
this 10 said that they should focus on quality factors while manufacturing goods, 9 said that
firms should provide gift vouchers and 6 said that they should deliver effective services.
Discount prices
Gift Vouchers
Effective services
Quality products
0
2
4
6
8
10
12
14
16 15
9
6
10
Column C

Theme 3: Benefits of after sales services?
Interpretation: From the above graph it can be stated that the most vital benefits of afters
ales services is achieving satisfied customers as 15 out of 40 respondents are in favour of this, 10
said it results in making products different from competitors 7 said it helps in retaining loyal
customers who will increase their sales and 8 said that profitability will be increased.
Enhancing profitability ratios
Gaining satisfied customers
Differentiation
Customer retention
0
2
4
6
8
10
12
14
16
8
15
10
7
Column C

Theme 4: Products which are offered by Starbucks?
Interpretation: From the above graphs it is stated that Starbucks are mostly earning
profits from selling sandwiches as 18 out of 40 customers are in favour 10 said that people are
mostly consuming their coffee products 7 said they were consuming Smoothies and 5 said they
were consuming baked products.
Coffee beverages Baked Goods Sandwiches Smoothies
0
2
4
6
8
10
12
14
16
18
10
5
18
7 Column C

Theme 5: After sales techniques used by Starbucks to gain loyal customers?
Interpretation: From the above graph it is examined that loyal customers were achieved
by firms by exchange of products which are having defects as 12 out of 40 respondents are in
favour of this 11 said that they are maintaining good contact with all their customers, 9 said that
they were supporting customers and said they are taking regular feedbacks in order to gain loyal
customers.
Feedbacks
Annual Maintenance Contract
Exchange / Return
Customer support
0
2
4
6
8
10
12
8
11
12
9
Column C

Theme 6: Retaining loyal customers helps in enhancing sales and profitability of firms?
Interpretation: From the above graph it is stated that loyal customers are useful for firm,s
as it results in enhancing their overall sales and profitability ratios as 38 out of 40 respondents
are in favour of this and 2 were not in favour of this aspect.
Agree Disagree
0
5
10
15
20
25
30
35
40
38
2
Column C

Theme 7: Satisfied customers helps in developing strong images of firms at market places?
Interpretation: From the above graphical presentation it can be examined that if the firms
achieve success in their operations then it results in achieving strong image at market places as
35 out of 40 respondents are in this favour and 5 said they were not able to establish strong
images with the help of satisfied customers.
Yes No
0
5
10
15
20
25
30
35
35
5
Column C

Theme 8: Are you happy with the offered products and services of Starbucks?
Interpretation: From the above graph it is evaluated that all the customers are happy with
the products and services which are offered by Starbucks as 39 out of 40 respondents are in
favour of this and inly 1 said the offered products are not able to satisfy them.
Happy Not happy
0
5
10
15
20
25
30
35
40
39
1
Column C

Theme 9: Rating which can be given to offered products and services of Starbucks?
Interpretation: From the above graph it is concluded that the rating which are offered to
the products of firms is mostly 3 star as 15 out of 40 respondents gave this rating, 12 gave 1 star,
10 gave 2 star and 3 respondents gave 4 star to them.
* star ** star *** star **** star
0
2
4
6
8
10
12
14
16
12
10
15
3
Column C

CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Conclusion
According to the above report it has been analysed that after sales services are valuable
factor in order to retain loyal customers who will enhance their sales and profitability ratios.
After sales services are tools are tools which are used by firms in order to gain attention of
customers so they will buy their products thus their overall sales and profitability can be
enhanced. Starbucks are offering quality coffee to their customers and this is an essential aspect
which helps them to develop their strong images at market places. There are different views of
authors considered which are valuable for them in order order to retain loyal and satisfied
customers who will consume their products. Firms had retain loyalty aspects among all their
customers by taking feedback from them and solving all the difficulties which are faced by them
in order to satisfy them thus enhancing their overall sales ratios.
5.2 Recommendation
In order to complete all the research activities in effectual and planned ways the
investigator needs suggestions and recommendations which are beneficial for them in order to
perform all activities in effective ways. All the resources of the economy should be utilised in
effective ways if they want to achieve success in their operations by executing all activities in
right time that have been allotted to them. There can be an effectual time management plan
designed which are valuable for them so complete their operations in those time that have been
allotted to them. The researcher can also develop plans for executing all the activities in within
that cost that is available for them in order to achieve effective results. Firms should focus on
providing effective and quality products to all their customers in order retain their loyalty
aspects. The needs of all the customers should be fulfilled in order to enhance overall sales and
profitability of business. There should be focus on after sales services in order to retain loyalty of
customers so that business can expand their operations at national and international areas. If the
customers are satisfied with a ll the services that are offered to them then they will in turn
enhance the overall profitability of business which results in achieving higher growth.

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