Taking the “Starbucks Experience” digital

Post on 14-Dec-2014

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Creating the digital "Starbucks experience" At Starbucks, coffee is big business. Since opening its first location in Seattle, Washington in 1971, the company has grown into one of the world's largest specialty foods retailers and one of the most globally-recognized brands. But Starbucks has built a billion-dollar enterprise on more than just coffee; it has succeeded in creating a unique Starbucks experience in its stores and online. This case study sets out the recipe for Starbucks' Digital Transformation success.

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Sources1. 2013 Annual meeting of shareholders2. Starbucks still feeling a buzz from mobile payments, Mobilepaymentstoday.com, 20133. Starbucks Coffee 2012 Biennial Investor Conference4. Starbucks Rates Number 1 in Study of Most Socially Engaged Companies by Research Firm PhaseOne5. Mystarbucksidea.com6. BusinessWeek, Starbucks Schools Other Retailers on Mobile Payments, 20127. MIT Sloan Management Review, How Starbucks Has Gone Digital, April 2013

Reach out: Interested in reading the full report? Head to http://www.capgemini-consulting.com/starbucks-taking-the-starbucks-experience-digitalFollow us on Twitter @capgeminiconsul or email dtri.in@capgemini.com

34.8 million

Reduced 10 secondsfrom every card or mobile phonetransaction, cutting customers’time-in-line by

94% of all Facebookusers are either a Starbucksfan or are friends with one

In 2012, the company booked

in payments via its loyalty card

900,000 hours

~ 100,000

of its mobile apps /week

~DOWNLOADSDOWNLOADS

visitors on Starbucks web sitesand mobile applications

$3 billion

900,000followers onInstagram

3.4 millionTwitter followers

54 millionFacebook fans

Starbucks is #1socially engagedcompany

Engaging customers

through social media

offline customer experience

Creating the digital

Starbucks

Access to local contentsuch as local news, localrestaurant reviews fromZagat or check-in via Foursquare

In-store customers premium digitalcontent: The New York Times, The Economist,The Wall Street Journaland other publications

Digital Network

offers:

“Starbucks experience”

Bridging the online and

Creating a digital advantage

Processes 3 millionmobile payments a week

20% of all loyalty cardtransactions conducted via mobile

Aims to collect 10% of in-storepayments via mobile by the end of 2013

active users of itsmobile payment system7 million

Leading the way

in mobile payments

My Starbucks Idea collected over

50,000 customer submitted ideasFuels customerdriven innovation

Improved stockperformance

~$73 $8

~Reduced transactionalcharges through its mobilepayment system, loweringits operational costs

30% of all in-store transactions are now prepaid, improvingcash flow 2009

July 2013

30% PrepaidTransactions

#digitaltransformation

Everything we are doing in digital is about enhancing andstrengthening connections with our customers in only the waythat digital can and only the way that Starbucks can.

Adam Brotman, Chief Digital Officer

Taking the“Starbucks Experience”digital