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Taking the “Starbucks Experience” digital

Date post: 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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Sources 1. 2013 Annual meeting of shareholders 2. Starbucks still feeling a buzz from mobile payments, Mobilepaymentstoday.com, 2013 3. Starbucks Coffee 2012 Biennial Investor Conference 4. Starbucks Rates Number 1 in Study of Most Socially Engaged Companies by Research Firm PhaseOne 5. Mystarbucksidea.com 6. BusinessWeek, Starbucks Schools Other Retailers on Mobile Payments, 2012 7. 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-digital Follow us on Twitter @capgeminiconsul or email [email protected] 34.8 million Reduced 10 seconds from every card or mobile phone transaction, cutting customers’ time-in-line by 94% of all Facebook users are either a Starbucks fan 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 ~ DOWNLOADS DOWNLOADS visitors on Starbucks web sites and mobile applications $3 billion 900,000 followers on Instagram 3.4 million Twitter followers 54 million Facebook fans Starbucks is #1 socially engaged company Engaging customers through social media offline customer experience Creating the digital Starbucks Access to local content such as local news, local restaurant reviews from Zagat or check-in via Foursquare In-store customers premium digital content: The New York Times, The Economist, The Wall Street Journal and other publications Digital Network offers: “Starbucks experience” Bridging the online and Creating a digital advantage Processes 3 million mobile payments a week 20% of all loyalty card transactions conducted via mobile Aims to collect 10% of in-store payments via mobile by the end of 2013 active users of its mobile payment system 7 million Leading the way in mobile payments My Starbucks Idea collected over 50,000 customer submitted ideas Fuels customer driven innovation Improved stock performance ~$73 $8 ~ Reduced transactional charges through its mobile payment system, lowering its operational costs 30% of all in-store transactions are now prepaid, improving cash flow 2009 July 2013 30% Prepaid Transactions #digitaltransformation Everything we are doing in digital is about enhancing and strengthening connections with our customers in only the way that digital can and only the way that Starbucks can. Adam Brotman, Chief Digital Officer Taking the “Starbucks Experience” digital
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Page 1: Taking the “Starbucks Experience” digital

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 [email protected]

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

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