Categories Technology

Starbucks looks to make more bucks through its app

It’s no secret that Starbuck’s mobile app is insanely popular among coffee loving loyalty-program members. The company’s Mobile Order & Pay — launched in 2015 — was an instant hit in the inner circle. And now Starbucks has decided to roll out the app to all its customers in a strategic move to lift the slowing U.S. sales.

Courtesy – Pixabay

Consumer dependency on digital technology has risen exponentially, and it is less likely ever to slow down. This has even forced many giants to alter the way they function.  Within the food-service industry, Starbucks was among the few early adopters to embrace the latest technologies to serve its customers.

Starbucks has grown from a mere coffee roaster to a tech-loving brand, with initiatives such as free Wi-Fi services, its partnership with Apple’s iTunes Music, the eGift cards or wireless charging — all working to its favor.  With more than 14 million active members, the company’s mobile app is booming.

Mobile Order & Pay was introduced to help customers avoid long queues. The rising popularity of the mobile app did hurt Starbucks last year as it struggled to keep up with the mobile orders. There was overwhelming foot traffic at a few stores — resulting in despair drove away quite a few customers. Despite this hiccup, the coffee giants picked itself up and ever since, mobile ordering has been on the rise.

The company finds it more effective to target new products to its customers via its app. The company aims at expanding its footprint in China by opening over 5000 stores by 2021. The company hopes that China will overtake the U.S. as the largest market.

During the first quarter this year, the company reported a 2% increase in its comparable store sales. Comp stores in Americas and U.S. rose 2%, much lower when compared to China that reported a 6% jump. Mobile Order & Pay accounted for nearly 11% of its total transactions in the U.S. during the quarter.

This new strategy seems to have worked like a charm, and we will soon see the coffee giant double down on the Chinese market using the app. While mobile ordering will help the brand get back to its pace back home, it is the new markets that could benefit the most from this.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top