Keeping Customers Happy Tends to Pay Off Over Time

Companies that succeed over the long term continue to find new ways to offer value to their customers. Some of that value can come from providing new products and services that compliment existing ones.

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  • Other companies offer better value with a higher quality user experience, with better service and interest. No matter what the specifics are, companies that continue to find new ways to drive customer satisfaction will continue to see customers return time and again.

    Retailer Target (TGT) has been working to increase sales by offering curbside pickup. Now, the company is rolling out an additional curbside service: The delivery of Starbucks (SBUX) coffee.

    Adding Starbucks locations in stores led to longer customer shopping times and higher sales. And having the option to pick up shopping and coffee in one location may replicate the experience for today’s mobile delivery age.

    Action to take: The move may help push sales higher, and in turn push Target shares from near 52-week lows. Plus, today’s investors in the retailer can get a 3.3 percent dividend while waiting for oversold shares to move higher.

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  • For traders, shares may trend higher, especially if early results from the coffee curbside delivery prove promising. The November $140 calls, last going for about $5.70, could see mid-double-digit returns or better on a push higher for Target shares.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.