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November 14, 2008
How Not To Gain Market Share
Starbucks announced a 97% drop in profits recently. In tough times, those expensive lattes and macchiatos just don't seem as necessary. All the more reason why you would expect Dunkin Donuts to really be emphasizing service right now.
So, when I went into one of the local Dunkin Donuts stores at 8 am yesterday to buy a dozen bagels for a meeting, I was expecting great service. I was surprised to find they had 13 bagels on the racks (that's total number, not varieties). When I asked the salesperson if that's all they had, she looked at me like I was speaking in tongues. In fact, of my last four stops at a Dunkin Donuts, I have gotten the experience above, a wrong order, a burned sandwich after the one person making them got no help from the 6 people standing around the cash registers, and a one correct order.
I understand how hard it is for large franchises to reach all the employees and to ensure consistent consumer experience. But with all the new social media options and tools available, there are so many NEW ways to reach, motivate, empower and train employees to deliver on a brand's promise. Not having bagels on hand at 8 am is a managerial problem. Having a bad consumer facing manner is an employee and managerial problem. Both are addressable if the company really cared to.
Starbucks has its own issues, but has made a living attempting to deliver a positive consumer attitude. Even when lines are long, Starbuck's baristas try to have a personality and make you feel valued. If DD expects to gain sustainable share at the higher end of the price specturm, I think an attitude adjustment is in order. Or perhaps they don't really want to gain share from Starbucks after all.
(P.S. I know that DD is likely gaining share thanks to the economy. But it won't be sustainable if the service does not warrant loyalty.)
Posted by jcioban at November 14, 2008 12:11 PM
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