Case: Study on h ow Starbucks leveraged digital transformation to enhance customer e ngagement Presented by : Divya(23MBA10466) Lakshita(23MBA10472 ) Avinash(23MBA10465)
Introduction to Starbucks’ Digital Transformation Overview of Starbucks: Our story begins in 1971 along the cobblestone streets of Seattle’s historic Pike Place Market. It was here where Starbucks opened its first store, offering fresh-roasted coffee beans, tea and spices from around the world for our customers to take home. Need for Digital Transformation: As customer expectations evolved, Starbucks needed to enhance engagement, convenience, and personalization.
Key Digital Initiatives Implemented Starbucks Mobile App: Launched in 2009, the app offers mobile ordering, payment options, and loyalty rewards . Example : Customers can order and pay ahead, reducing wait times . Starbucks Rewards Program: Digital rewards program integrated into the mobile app. Example : Points for every purchase, redeemable for free drinks and exclusive offers.
Leveraging Loyalty Programs and Personalized Offers 1.Starbucks Rewards 2. Personalized Offers 3. Data-Driven Insights The program allows customers to earn stars for purchases, which can be redeemed for free drinks and food. Starbucks Rewards offers tiered benefits for higher levels of engagement. The app tracks customer preferences and sends them targeted offers based on their purchase history and location. This personalized experience enhances customer engagement. Starbucks uses data to analyze customer preferences and personalize the customer experience. They have built a comprehensive data platform to manage customer data and optimize their marketing efforts.
Integrating Digital Payments and Mobile Ordering 5 Order Placement : Customers can order their favorite drinks and food items from their mobile app. Order Confirmation : Once the order is placed, the app provides a confirmation and estimated wait time. Pickup and Payment C ustomers can pick up their order at the store or use mobile payment options, such as Starbucks Pay or Apple Pay.
6 Expanding Digital Channels for Brand Engagement Social Media: Starbucks utilizes social media platforms, such as Instagram and Facebook, to engage with customers, launch campaigns, and share brand stories. Content Marketing: Starbucks creates engaging content, including blog posts, videos, and podcasts, to provide value to customers and build brand loyalty . Email Marketing: Starbucks uses email to communicate with customers about promotions, new products, and exclusive offers.
Driving Innovation through Digital Partnerships Starbucks partnered with delivery platforms, such as Uber Eats and Door Dash, to expand its reach and offer convenience to customers. Music Streaming Services: Starbucks partnered with Spotify to offer a curated music experience in their stores and on their app, creating a unique brand experience. Digital Payment Providers: Starbucks collaborated with digital payment providers, such as Apple Pay and Google Pay, to make payments faster and more convenient for customers. Delivery Services: