Taking the “Starbucks Experience” digital

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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.

Taking the “Starbucks Experience” digital

  1. 1. Taking the “Starbucks Experience” digital Creating the digital “Starbucks experience” ~ 100,000 ~ 94% of all Facebook users are either a Starbucks fan or are friends with one 34.8 million DOWNLOADS visitors on Starbucks web sites and mobile applications of its mobile apps /week 10 seconds Reduced from every card or mobile phone transaction, cutting customers’ time-in-line by In 2012, the company booked $3 billion in payments via its loyalty card 900,000 hours Leading the way in mobile payments 7 million Processes active users of its mobile payment system 3 million mobile payments a week 20% of all loyalty card transactions conducted via mobile 10% Aims to collect of in-store payments via mobile by the end of 2013 Engaging customers through social media 54 million Facebook fans Starbucks is #1 socially engaged company 900,000 3.4 million followers on Instagram Twitter followers My Starbucks Idea collected over Fuels customer driven innovation 50,000 customer submitted ideas Bridging the online and Starbucks offline customer experience Digital Network offers: In-store customers premium digital content: The New York Times, The Economist, The Wall Street Journal and other publications Access to local content such as local news, local restaurant reviews from Zagat or check-in via Foursquare 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 Creating a digital advantage 30% Reduced transactional charges through its mobile payment system, lowering its operational costs Prepaid Transactions 30% of all in-store transactions are now prepaid, improving cash flow Improved stock performance ~ ~$73 $8 July 2013 2009 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 dtri.in@capgemini.com #digitaltransformation

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