October 26, 2017 | The XM Blog

A tale of two cafes: How prioritizing CX helped Panera and hurt Starbucks | Retail TouchPoints


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Starbucks Panera CX

The following article written by ForeSee VP of Marketing Eric Feinberg was first published on Retail TouchPoints.

Business leaders who know how to identify the biggest barriers to the success of their organization are often praised, and yet we know this factor doesn’t always provide the desired results.

In today’s fast-changing consumer-based economy, it’s simply not enough to identify problems. What’s required is the ability to prioritize how and when to make improvements once problems have been identified. And that’s not even considering the added burden of communicating the logic of said prioritization strategy across the organization as well as to an impatient board of directors or investors. In other words, having a reliable priority index of improvements is a crucial factor for businesses — especially when it comes to casual restaurant chains.

There are two fairly recent examples that back up the important role prioritization has on success: fast-casual restaurant company Panera and Seattle-based coffee chain Starbucks. You just need to examine how each company approached strategies for ordering via mobile device.

Panera’s Long Path To A Better Mobile Ordering Experience

Panera rolled out a series of major improvements to their mobile ordering process that carried over to its in-store experience earlier this year, resulting in drastically lower food ordering wait times and a boost to sales. The interesting thing to note here is that while Panera may have started with the goal of improving the digital customer experience via mobile devices, it ended up making adjustments well beyond the mobile app.

This, of course, was very likely, because Panera eventually realized an improved mobile customer experience required other operational changes. Case in point: Panera CEO Ron Shaich recently told the Wall Street Journal that improving the mobile ordering process required addressing “literally hundreds of these little things” to see success. Those “things” included fixes like simplifying the kitchen ordering interface for employees, adding mobile ordering kiosks to physical stores and more.

The main point here is Panera realized mobile ordering wasn’t limited to mobile improvements, and as such was able to better prioritize when and how it implemented changes…[cont.]

Read Eric’s entire article via Retail TouchPoints: A Tale Of Two Cafes: How Prioritizing CX Helped Panera And Hurt Starbucks

Categories: Retail

About the Author

As a pioneer in customer experience analytics, Verint delivers superior technology and proven methodology to connect the customer experience to the bottom line. The result is better business for companies and a better experience for consumers.

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