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Starbucks Reaps The Benefit Of Mobile Marketing Strategy: Case Study

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ABOUT- The Starbucks Story

Starbucks, the coffee outlet ,which launched one of the most triumphant Mobile Marketing Strategy till date which resulted in significant adoption rates,with an estimated 11 million people signing up for Starbucks app.  This is really paying off with company itself reporting 6 million transactions through the program occurring every month, which shows its significant potential accounting . The current statistics shows about 21% of Starbucks transactions are done via mobile app.In-app marketing plays a significant role here. This case study is a clear example of just how effective in-app messages can be and data from Sales force is backing this up.

STRATEGY – How they did it

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1   Building Value in Customers:  The most recent Apps developed by them facilitate the customers to play music of their choice, create their own playlists and also save the songs played while enjoying a coffee at their own pleasure across any Starbucks location. The mobile app currently uses a  GPS technology which not only allows user to share music across that location but also gifts them the pleasure to continue listening their favourite playlist even once they leave the coffee shop.

2  Order and Pay Feature: This Mobile Marketing Strategy was a great success which is proven from a significant adoption rate where customers were allowed to pay in advance for the beverage to pick upon from any of Starbucks store, This was a boon for the huge morning rush and wait for customer payment,This allows a customer to pay in advance before picking up the actual beverage in turn significantly allowed new customers in queue without losing any value for existing ones.

3  Messaging/Notifications :  The app included a message notification sent to buyers where each customer filled the survey for honest opinion which not only allowed customers cater star ratings but also helped to improve customer satisfaction which was a value add. Audiences can fill out surveys sent through the phone and, with each survey filled out, more stars are given to the customer.

4  Loyalty Programs : This was identified from the apps usage data ,which customer  being in frequent buyer group and in turn awarded with a free coffee with a goal to retain customers and increase sale. This resulted in higher retention rate and customer satisfaction towards the brand  including more referral due to quality of rewarding service given as a value add. Users are likely to continue buying beverages with the goal of earning a free one and thisMobile Marketing Strategy worked.

5   Special Offers  :  Company focused on better customer engagement by providing special bonuses, birthday gifts, discounts and complimentary beverage for a higher usage rate, this in turns sounds more enthusiastic to customers to keep on using app and refer new people in order to receive free stuff which in turn fulfills the goal for higher customer engagement and generate more revenue.

RESULTS – Report Card

The seamless loyalty program incorporated resulted in users buying the same brand beverage with a goal of earning free one , this ultimately resulted in gathering information about customer base and their buying habits.

The order and pay app resulted in significant adoption rate which reduced the queue process and morning rush thus allowing about 6 million transactions through the program occurring every month.

is estimated that 11 million people are currently signed up to the Starbucks mobile application, and that sales have increased 22%.

Audiences can fill out surveys sent through the phone and, with each survey filled out, more stars are given to the customer which further increased app usage and thus resulted in more sales.

By using mobile tactics to reward their patrons, Starbucks has increased customer retention, lifetime value, and loyalty.

The app also entices the audience to participate in surveys for stars.

 According to the research, 77% of marketers note positive ROI from mobile marketing, while another 20% have plans to use apps for marketing over the coming 12 months. 

LEARNING – What we can take home.

1  Research the motive of customers :  Starbucks understood its critical to analyse customer behaviour and buying habits in order to keep updating app as per the most critical demands based out of customer survey base and what actually they require from a brand . This will include incorporating new features .

2  Personification offered to customers : Starbucks provided value adds such as recording , saving playlist and playing at owns convenience even though at  times they are not associated with brand forces them to think we not only offer services but also give them value.

3  Engage with Customers : Starbucks analysed engaging and interacting with audience is prime objective, in order to accomplish this goal they provided incentives , gifts , discounts to build everlasting bond between customer through mobile app marketing. Apps such as order and pay have created greater impact on customer minds and resulted in increased conversion rate.

4  Notifications / Surveys :  Starbucks involved a vital procedure which allowed customers to fill in surveys and send back to Starbucks which entitles customer for Starbucks star points which could be later redeemed for a gift , this also serves purpose to understand customer behaviour , their lifestyle , diverse needs of different customer and whats common in between to launch a next mobile marketing campaign which could  have higher conversion rate and builds revenue for company.

Courtesy : Starbucks

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