Mar 21, 2008 6:02 AM, PROMO Xtra

Starbucks Creates New Customer Experience

Starbucks is making a series of changes at its stores in an effort to transform the customer experience and perk up sales.

Among the initiatives are a social networking site called http://www.MyStarbucksidea.com. The site, which rolled out Wednesday, is designed to give customers a forum to create and vote on new ideas for the coffee chain. In the “Ideas Into Action section,” people can track the progress of the ideas. The company is also rolling out a site for its partners to share ideas.

“We engage in millions of conversations with our customers everyday, and those conversations and ideas have helped shape the company we are today,” said CEO Howard Schultz in a statement. “With the launch of MyStarbucks.com, we are extending the Starbucks community online and creating a dynamic forum for us to capture and act upon our customers’ best ideas.”

Starbucks also plans to launch a new rewards program for people who use its stored-value cards. Starting in April, U.S. and Canadian customers who registered their cards will receive free extra ingredients such as flavorings, free refills on brewed coffee during visits and an offer for a free tall beverage with the purchase of one pound of coffee beans.

Rewards members will also receive two hours of free Wi-Fi service and the chance to join Starbucks’ efforts to support charitable causes.

The changes, which were revealed Wednesday during the firm’s annual meeting of shareholders, come more than two months after Schultz resumed his position as CEO. The initiatives are part of the company’s focus to improve the customer experience and engage new users.

Other changes include expanding into drinks and foods focused on health and wellness and testing new energy drinks to boost its bottom line. Starbucks will also introduce a new coffee blend, called Pike Place Roast in April.

Also rolling out are new Mastrena espresso machines. By yearend about 30% of Starbucks’ U.S. stores will feature the new equipment.

“There have been times in our history where others questioned whether we had reached our limit—yet time and time again, we have responded by reaching even greater heights,” Schultz said. “Today, we again demonstrated our commitment to surpassing the expectations of every one of our customers, shareholders and partners.”

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