Buzz Marketing Won't Help Starbucks

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by: David Armano

Scott over at Experience Planner has a great write up on the reason Starbucks' stock price has taken a serious nose-dive.  Is it because they aren't doing enough marketing?  Not enough viral?  Or "WOM"?

The Starbucks stock plunge is a symptom of the other kind of "Word of Mouth".  You know, when people have a crappy experience and they tell others about it.  Or when they go to your competitor because you have let them down.  From Scott's post:

"Here’s what CEO, Jim Donald has to say about it (c/o Guardian):

“We have recognised the opportunity to refine and improve our cold beverage station to make drink preparation more efficient and improve service over time but, in retrospect, we did not move aggressively enough.”

In a completely unrelated entry, Bruce Nussbaum explains why Starbucks is losing him:"

Now in contrast, take a look at Motorola's stock performance in the past 5years.  The upward trend nearly aligns with the release of the wildly popoular RAZR:

It's all a reminder that we need to focus on BOTH innovation + execution (and customer service).  We need to concentrate on our "products".  The things that we produce, even if they are considered a service.  In other words, provide a good experience so people will say good things about us.  After all, the average customer is your most effective marketer.

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