HBS Case Study Analysis STARBUCKS LOYALTY REIGNS · 2.) Additionally, 94% of Facebook users were fans of Starbucks or friends with someone who was. MOBILE INTIMATE SOCIAL TRANSAC
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HBS Case Study Analysis
STARBUCKS LOYALTY REIGNS
MKTG 5606 | Jennie Nguyen
MY STARBUCKS REWARD (MSR) & STAR SYSTEM★ Speed: fastest way to pay★ Efficiency: monitoring balance★ Convenience: reload card amount★ Incentive: track your progress via
stars to earn free drinks
FOUR PILLARS
OUTSTANDING KPIs ENABLED BY MOBILE2011 2012 2013 2014 2015
By end of year, 9M of 45M
customers were paying by
mobile each week.
1st edition of app launched
(digital version of Starbucks
Card) led to a high adoption
rate.
Invested in Square -
streamlined store experienced and enabled Mobile Order & Pay
feature
Served mobile ads via MRAID
and geolocation
assisted customers to
find the nearest shop.
Earnings:$16.4 billion
Earnings: $19.2 billion
Earnings:$11.7 billion
Earnings:$13.3 billion
Earnings:$14.9 billion
Integrated Twitter to
purchase coffee for friends via the mobile app using payment
feature & handle
reference
In one year ...
MI
ST1.) Utilizing Twitter to enact a paid media campaign via @tweetacoffee,
combined social and mobile. 2.) Additionally, 94% of Facebook users were fans of Starbucks or
friends with someone who was.
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App interface is completely a native app, rather than a responsive version the website. The mobile app’s utility is designed for on-the-go ordering (GPS) and electronic payment (scan bar).
App contains exclusive features (i.e. Itunes downloads) and promotions (i.e. bonus stars on Sunday) not available on other platforms. These offers are unique only to a mobile user.
App stores an archive previous purchases, payment history, and rewards. For each subsequent visit to the app, the interface is updated according to the last interaction utilizing the app.
Suggestive SellingA la carte items are suggested to complement orders
STARBUCKS MOBILE CONTENT Store Inventory AvailabilityAvailability for a particular item is communicated during online ordering.
Prior Order RecaptureOrder history is available to enable a seamless future purchase of a customized beverage/food
News/Offers
-“Pick of the Week” allows free apps weekly via the app store.- Updates on Starbucks products and upcoming promotions
EXTENDING PURCHASES & EXPERIENCE OUTSIDE THE FOUR WALLS OF A STARBUCKS STORE
DELIVERY SERVICE SUBSCRIPTION SERVICE
Postmates only exists in densely populated areas (i.e. cities)
Uber Eats could provide coverage for regions with a large range of distance
Similar to Dollar Shave Club, those who purchase goods (i.e. kcups & bagged beans) can subscribe to a regular subscription that can be delivered or picked at their local store at a specified time.
Scheduled drink pick-ups for extreme mobile-device regulars, a service can be offered where they can schedule their account to automatically order the same drink as often as they prefer.
SOURCES
◈ Darden Business Publishing, University of Virginia. (September 26, 2016). Starbucks Loyalty Reigns.
◈ Investors.Starbucks.com
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