Coffee is the second preferred substitute for tea. Starbucks is an American coffee company headquartered in Washington, established in 1971. In the era of technology, smart phones play a very crucial role. Smartphone are now establishing itself as a popular tool in the foodservices and many other FMCG businesses. Many food and beverages industries are now coming with the idea of mobile orders and pay to make it convenient for the consumers as it reduces the time and effort spent by them.
The Starbucks are now facing a decline in same store sales due to which the management need to make some strategic changes focusing on the growth. Strategic initiatives taken by Starbucks include the store grow portfolio, increasing the CPG growth, building teavana and most importantly extending its store digitally by smart phones apps.
Ken Research says, Starbucks launched its “MY STARBUCKS REWARD” programme under which the beneficiary member is rewarded with star with the purchase of specific items in the stores which they can later on redeem at any of the Starbucks brand.
This loyalty programme started in the form of plastic card which the customer can synchronize to their mobile app. According to the sources “6% of the Starbucks revenues are earned through unregistered card and 12% revenues are earned through myStarbucks rewards cards, 15% through mobile app and remaining 67% through other modes of payment.”
According to research report “Success Case Study: Starbucks Mobile Order & Pay”, mobile payments have increased triple folded since 2014 as it is now a popular mode of payment which is opts by American consumers. The use of mobile app is continuously growing in the past few years. In 2014, total mobile spend at Starbucks were USD 1.5 BILLION which was 83% higher than the revenue for the year 2013 which was only USD 0.8 billion.
As 15% of the Starbucks revenues are generated through mobile app, which is increasing the traffic and indirectly helping the same store sales. Personalized marketing techniques are also used by the Starbucks to maintain the loyalty of the customers.
The mobile orders and pay strategy by Starbucks is proving to be a success by actually making payment convenient for the U.S. consumers and therefore it acts as key driving growth factor for the company
Key Topics Covered in the Report:
Global Coffee Industry
Starbucks Mobile Order Technology
Starbucks Mobile App Strategy
Starbucks Revenue Growth Rate
Global Mobile Order Market
Starbucks Coffee Revenue Global
Starbucks Coffee Mobile Orders Market Size
Starbucks Coffee Mobile Orders Market Analysis
Starbucks Coffee Mobile Orders Market Research
Global Coffee Mobile Order Market
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Ankur Gupta, Head Marketing & Communications