Innovation & Customer Loyalty

As companies tend to create more various, fancier products to fit customers’ needs, how to get innovations meet expectations is a question. Sustaining innovations, charging higher price to most demanding customers by providing more professional services and products, are regarded as a stereotype, though this strategy is not always succeed. For Starbucks, introducing the La Boulange’s coffee chain to offer fancier pastries does not meet its expectation, even question customer loyalty. This is because new pastries, complained to be too pricey and small are not customized. In order to stem the loss of customers, Starbucks now plans to bring back some products from old menu. In this sense, innovation is a paradox, which is necessary for promotion but may be harmful to sales and customer loyalty on the other hand. So before implementing new strategies (or new products & services), companies need to do professional market researches to ensure these innovation and improvement customize customers’ needs. In addition to sustaining innovations, Disruptive innovations aiming of providing more accessible services, is also a choice of these companies seeking to break their market limitation because this strategy opens a new door of bottom market. In general, every strategies should depend on the market and customers’ need.

A Starbucks Corp. Store Ahead Of Earnings Figures

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