How Starbucks Used YOUR Ideas to Create Best-Selling Products! Crowdsourcing Story | MBA Case study

Summary

This video explores the transformative power of crowdsourcing and customer engagement, highlighting Starbucks' 'My Starbucks Idea' platform. Launched during the 2008 financial crisis, the platform allowed customers to submit, vote, and discuss ideas for products and store improvements. This innovation helped Starbucks recover, expand globally, and foster deep customer loyalty. By engaging customers in decision-making, gamifying participation, and incorporating their ideas, Starbucks not only improved its offerings but built a strong sense of community and brand advocacy. The case study showcases the value of crowdsourced innovation and its impact on business growth.

Takeaways

• 😀 Starbucks' My Starbucks Idea platform allowed customers to submit, vote, and discuss product and service ideas, directly involving them in the company's growth process.
• 😀 The platform played a crucial role in Starbucks' recovery from the financial crisis in 2008, helping the company grow from crisis to over 27,000 stores worldwide.
• 😀 By crowdsourcing ideas from its customers, Starbucks fostered a sense of community and transparency, where fans felt heard and valued, building brand loyalty.
• 😀 The My Starbucks Idea platform was unique in that it wasn't just a suggestion box; it included features like voting, commenting, and leaderboards, which gamified the experience and engaged users.
• 😀 Starbucks created a personalized experience for customers by having 'Idea Partners' (employees) interact with users on the platform, providing feedback and making customers feel connected.
• 😀 Some of Starbucks' most popular items, such as the Pumpkin Spice Latte and Cake Pops, originated from customer suggestions on the platform, showcasing the power of crowdsourced innovation.
• 😀 The platform not only focused on products but also allowed customers to suggest improvements in overall store experiences, such as the addition of free Wi-Fi, which became a major attraction.
• 😀 Starbucks used the platform as a valuable market research tool, gaining insights into customer preferences, demographics, and regional trends, which influenced product development and service improvements.
• 😀 The platform helped build a sense of community among Starbucks customers, turning them into brand advocates who shared their experiences on social media, thus providing free marketing for the company.
• 😀 The My Starbucks Idea platform created mutual value for both Starbucks and its customers by allowing customers to feel like insiders and contributing to a brand they loved, which led to lasting brand loyalty.

Q & A

What was the main reason Starbucks launched the 'My Starbucks Idea' platform in 2008?

Starbucks launched the 'My Starbucks Idea' platform in 2008 to reconnect with its customers during the financial crisis, allowing them to submit ideas and help guide the company’s recovery. CEO Howard Schultz believed customer engagement and crowdsourced innovation could help the company overcome its challenges.

How many ideas were submitted to the 'My Starbucks Idea' platform by the end of its run?

By the end of its run, the 'My Starbucks Idea' platform had collected over 150,000 ideas from customers.

What were some successful products that came from the 'My Starbucks Idea' platform?

Successful products that emerged from the 'My Starbucks Idea' platform included cake pops, the hazelnut macchiato, and free Wi-Fi in stores.

How did Starbucks ensure customer ideas were considered seriously on the platform?

Starbucks ensured customer ideas were taken seriously by having a dedicated team of 'idea partners' who reviewed submissions, provided feedback, and presented the most popular ideas to decision-makers.

What role did customer involvement play in the success of the 'My Starbucks Idea' platform?

Customer involvement was key to the platform’s success. By allowing customers to submit, vote on, and discuss ideas, Starbucks created a transparent and engaging process that made customers feel heard and appreciated, which in turn built strong brand loyalty.

How did Starbucks maintain a sense of community among platform users?

Starbucks maintained a sense of community by incorporating gamification elements like leaderboards, recognizing top contributors, and fostering interaction among users through voting and commenting on ideas.

What was the benefit of Starbucks adding 'idea partners' to the 'My Starbucks Idea' platform?

The addition of 'idea partners' provided a personal touch to the platform, allowing customers to receive responses and feedback from actual Starbucks employees, which built trust and enhanced customer engagement.

What was one of the key takeaways from Starbucks' crowdsourcing initiative for MBA students and business professionals?

A key takeaway is the importance of customer-focused innovation. By listening to customers and involving them in decision-making, Starbucks not only developed new products but also strengthened customer loyalty, showing how crowdsourcing can drive business growth.

How did the 'My Starbucks Idea' platform help Starbucks with market research?

The 'My Starbucks Idea' platform served as a valuable market research tool by collecting demographic and behavioral data from participants, helping Starbucks understand customer preferences, trends, and regional variations, which informed product development and strategic decisions.

Why did Starbucks retire the 'My Starbucks Idea' platform in 2018, and how did they continue engaging customers afterward?

Starbucks retired the 'My Starbucks Idea' platform in 2018 after a decade of success, but they continued engaging customers through other channels like social media platforms such as Twitter and their website, ensuring customer feedback remained a core part of their strategy.