LIZ: ALL RIGHT. WE ARE I WANT TO SAY ABOUT 20,
25 MINUTES AWAY FROM STARBUCKS
REPORTING ITS VERY FIRST
QUARTERLY REPORT SINCE GLOBAL
COFFEE CHAIN WAS PLAGUED BY THE
CORONAVIRUS PANDEMIC.
CORONAVIRUS PANDEMIC. THEY HAVE A HUGE ASIA BUSINESS
AND THAT OF COURSE IS WHERE IT
STARTED, IN CHINA.
RIGHT NOW AHEAD OF THE EARNINGS
REPORT, WE DO HAVE SHARES MOVING
HIGHER, FIRMING UP BY ABOUT
1.75% TO $79.10.
BUT RIGHT NOW, THE BUZZWORD IN
THE MARKETS IS REOPENING.
APPROXIMATELY 95% OF STARBUCKS
STORES IN CHINA ON THE GROUND
THERE, INCLUDING ITS RESERVE
ROASTERY IN SHANGHAI, HAS NOW
REOPENED.
REOPENED. STARBUCKS HAS ROUGHLY 4,300
CAFES IN THE ASIAN COUNTRY WHICH
IS ITS SECOND LARGEST MARKET.
BUT HERE IN THE U.S., STARBUCKS
IS ADOPTING A MONITOR AND ADAPT
STRATEGY TO REOPEN SOME OF ITS
STORES FOLLOWING THE CLOSURES IN
MID-MARCH.
MID-MARCH. SOME OF THE COMPANY’S 15,000
STORES TOTAL ARE GRADUALLY
REOPENING BUT MOSTLY FOR
DRIVE-THROUGH AND OF COURSE,
MOBILE AND TAKEOUT ORDERS.
STILL, NO SEATING AT THE MOMENT.
OUR NEXT GUEST IS ON THE
STARBUCKS BOARD, HAS BEEN FOR
YEARS, AND IS THE CEO OF A CLOUD
COMPANY WORKING WITH SOME OF THE
BIGGEST NAMES IN FINANCE AND
INSURANCE AMID COVID-19 TO SOLVE
THEIR BIGGEST PROBLEMS.
HERE’S FOUNDER AND CEO, CLARA
SHIH JOINING US IN A FOX
BUSINESS EXCLUSIVE.
BUSINESS EXCLUSIVE. CLARA, BEFORE WE GET TO THE BOOM
YOU ARE SEEING IN YOUR COMPANY,
AS A STARBUCKS BOARD MEMBER, HOW
HAVE YOU VIEWED THE WAY
STARBUCKS HANDLED BOTH ITS
LOCKDOWN AND REOPENING EFFORTS
AND WHAT CAN WE GLEAN FROM
WHAT’S HAPPENING ON THE GROUND
IN CHINA NOW TO WHAT WILL
EVENTUALLY HAPPEN HERE IN THE
U.S.?
U.S.? >> LIZ, THANK YOU SO MUCH FOR
HAVING ME BACK ON YOUR SHOW.
I THINK WE CAN LOOK TO WHAT
STARBUCKS HAS DONE AND CHINA
OVERALL AND REALLY FEEL LIKE
IT’S A BEACON OF HOPE FOR THE
REST OF THE WORLD THAT THINGS
WILL GET BETTER, THAT WE WILL
RECOVER.
RECOVER. I THINK THAT MULTINATIONAL
COMPANIES WHO HAVE OPERATIONS IN
CHINA LIKE STARBUCKS ARE DOING A
REALLY FANTASTIC JOB OF TAKING
LESSONS LEARNED ON THE GROUND
THERE AND APPLYING THEM TO OTHER
MARKETS, LIKE THE STATES.
LIZ: YEAH.
LIZ: YEAH. YOU KNOW, YOU SEE EXACTLY WHAT
STARBUCKS WAS FACED WITH, IT WAS
A HORRIFIC SITUATION.
THE STOCK HAS COME BACK, IT HAS
LOOKED INCREDIBLY WELL AND
MANAGEMENT CAME OUT PRETTY EARLY
ON AND EXPLAINED WHAT IT HAD TO
DO AND WHAT IT WAS EXPECTED TO
DO BUT HERE IN THE U.S., WHAT DO
YOU THINK EVENTUALLY CHANGES FOR
NOT JUST STARBUCKS BUT FOR ANY
BIG RESTAURANT COMPANIES OR ANY
BANKS, YOU KNOW, THEY ARE
LOOKING AT ATMs WITH PEOPLE’S
FINGERS AND GERMS ON THEM,
RESTAURANTS AND STARBUCKS ARE
WAITING ON LINES AND FIGURING
OUT HOW TO DEAL WITH THE
HOPEFULLY UPCOMING CRUSH OF
BUSINESS RETURNING ONCE AGAIN.
>> WELL, I THINK FIRST OF ALL,
IT’S A REAL TESTAMENT TO
LEADERSHIP, YOU KNOW, LEADERSHIP
IS FORGED IN CRISIS AND IT’S
REALLY IN THESE TIMES THAT YOU
SEE WHAT YOUR MANAGEMENT TEAM
AND YOUR PEOPLE OUT IN THE FIELD
ARE MADE OF.
THAT’S CERTAINLY BEEN THE CASE
FOR SO MANY COMPANIES.
IN ADDITION TO THAT, I THINK WE
WILL SEE A NEW NORMAL IN TERMS
OF EXPECTATIONS AROUND
CLEANLINESS AND SANITATION AND
CLEAR STANDARDS TO MAKE SURE
CONSUMERS TRUST THOSE IN-PERSON
RETAIL EXPERIENCES.
RETAIL EXPERIENCES. THEN THE THIRD I THINK IS THAT
WE SAW IN CHINA AND WE ARE
SEEING NOW AROUND THE WORLD THAT
COVID IS ACCELERATING DIGITAL
TRANSFORMATION
TRANSFORMATION TRANSFORMATION, PLANS THAT
ORGANIZATIONS AND BUSINESS
LEADERS WERE ALREADY, HAD PUT IN
PLACE AND WERE UNDER WAY OVER
THE NEXT FIVE YEARS HAVE BEEN
ACCELERATED OVER THE NEXT THREE
TO SIX MONTHS JUST OUT OF
NECESSITY.
NECESSITY. THERE’S NOT GOING TO BE ANY
GOING BACK.
GOING BACK. LIZ: DO YOU HAVE -- LAST
QUESTION ON STARBUCKS --
TIMELINE?
TIMELINE? THE CEO KEVIN JOHNSON, WE ARE
WAITING ON HIM, AFTER THE BELL
WE WILL PROBABLY HEAR, BUT ANY
TIMELINE YOU WOULD EXPECT FOR
STORES IN THE U.S. TO REOPEN FOR
SIT-DOWN BUSINESS?
SIT-DOWN BUSINESS? >> I REALLY DON’T HAVE THE DATA
TO BE ABLE TO RESPOND TO THAT.
BUT I THINK, I MEAN, THE
IMPORTANT THING IS AS WE SAW IN
CHINA, IT DOES GET BETTER.
STORES WILL REOPEN AND ALTHOUGH
IT WON’T BE EXACTLY THE SAME AS
IT WAS BEFORE, WE WILL BE
TOGETHER AGAIN AND WE WILL MEET
AGAIN.
AGAIN. LIZ: YOUR CLOUD COMPANY, I THINK
YOU’VE GOT LIKE 150,000 ADVISERS
WHO USE IT.
THEY DELIVER I GUESS
PERSONALIZED RELATIONSHIPS, SORT
OF CRM CUSTOMER RELATION
MANAGEMENT BUT TALK TO ME ABOUT
HOW YOU HELP COMPANIES RIGHT NOW
WITH THEIR NUMBER ONE BIGGEST
COMPLAINT FROM THE CLIENT, AND
THAT IS QUICKER RESPONSE TIME.
IT’S JUST BEEN SO SLOW.
I KNOW THAT MY SISTERS WERE
TRYING TO REACH CITIBANK, AND
IT’S NOT JUST CITIBANK BUT THEY
WERE ON THE PHONE FOR HOURS AND
HOURS AND I THINK THAT THAT HAS
BECOME A PROBLEM WITH THE
RESPONSE TIME.
RESPONSE TIME. WHAT IS IT THAT HEARSAY DOES?
>> YOU KNOW, AS YOU CAN IMAGINE,
RIGHT NOW, A LOT OF PEOPLE WANT
A RESPONSE BUT THEY ALSO WANT A
PROACTIVE REACH-OUT FROM THEIR
FINANCIAL ADVISER OR INSURANCE
AGENT.
AGENT. WHAT HEARSAY DOES IS WE PROVIDE
MOBILE TELEPHONY TEXT MESSAGING,
SOCIAL MEDIA, ALL COMPLIANT
DIGITAL COMMUNICATIONS BETWEEN
FINANCIAL ADVISERS, BANKERS,
AGENTS AND THEIR CLIENTS, AND
WHAT WE HAVE SEEN IN THE LAST
FEW WEEKS IS THAT DIGITAL TOUCH
THROUGH A HUMAN, WITH A HUMAN,
HAS GONE FROM BEING NICE TO HAVE
TO A MUST-HAVE.
WE ARE SEEING IT BOTH WAYS,
WHERE THE INFLUX OF CLIENT CALLS
IS UNPRECEDENTED BUT ALSO, THE
AMOUNT OF ACTIVITY AND THE
AMOUNT OF MINUTES THAT ADVISERS
SPEND CALLING THEIR CLIENTS,
CALLING THEM BACK, REACHING OUT
TO THEM, HAS ALSO INCREASED BY
3X TO 4X.
3X TO 4X. JUST REALLY INCREDIBLE AMOUNT OF
ENGAGEMENT THERE.
ENGAGEMENT THERE. OF COURSE, DESPITE, WE SEE THEM
WORKING ON WEEKENDS, WORKING AT
NIGHT.
NIGHT. THEY CAN’T GET BACK TO EVERYONE
THAT THEY NEED TO, SO THEY HAVE
TO LOOK AT OTHER CHANNELS.
LIKE TEXT MESSAGING, JUST TO LET
SOMEONE KNOW HEY, I KNOW YOU ARE
TRYING TO REACH ME, LET ME KNOW
WHAT YOU NEED SO I CAN START
WORKING ON IT AND I WILL CALL
YOU BACK AS SOON AS I CAN.
LIZ: BEFORE WE GO, WE’VE FWOTGOT
RUN, YOU ARE WORKING WITH SOCIAL
MEDIA, PARTNERING WITH FACEBOOK,
FACEBOOK’S DIVISION, INSTAGRAM.
WHAT CAPACITY?
WHAT CAPACITY? I’M INTERESTED TO KNOW WHAT
HEARSAY DOES FOR A COMPANY LIKE
THAT.
THAT. >> WELL, THERE’S MULTIPLE
ASPECTS OF SOCIAL SELLING FROM
YOUR PROFILE WHICH THE S.E.C.
VIEWS AS AN ADVERTISEMENT SO ANY
CHANGES TO THAT HAS TO BE
PREAPPROVED BY THE COMPLIANCE
TEAM.
TEAM. BUT ALSO TURNING SOCIAL MEDIA
INTO AN AUTHENTIC CONTENT
MARKETING ENGINE.
MARKETING ENGINE. THERE’S A LOT OF CLIENTS RIGHT
NOW WHO WANT ANSWERS, NOT JUST
REGARDING FINANCES BUT ALSO
REGARDING HEALTH, WELLNESS, HOW
TO TAKE CARE OF THEIR KIDS,
THEIR MORTGAGES, JOB SECURITY
AND ALL THAT CONTENT BEING
SHARED THROUGH THEIR HUMAN
ADVISER ON THE SOCIAL MEDIA
NETWORKS IS WHAT’S FOSTERING A
HUMAN CONNECTION.
HUMAN CONNECTION. LIZ: IT’S FASCINATING BUSINESS.
THANK YOU FOR JOINING US.