Starbucks stays ahead by creating digital experiences


August 11, 2020 | By RetailME Bureau

Amid constantly evolving customer behaviour, global coffee shop chain Starbucks stays ahead by creating digital experiences, coupled with flexible store concepts.

As consumers seek safe, familiar and convenient experiences, Starbucks‘ digital assets have proven to be a competitive advantage. Starbucks mobile order and pay has reached a record 22% of transactions in Q3, in part due to the contactless approach in stores. Delivery usage tripled in Q3 from the prior quarter and, Starbucks has begun rolling out curbside pickup with positive early results. Further, with plans for 700-1,000 curbside locations and 50 new Starbucks pick up locations, the company is well-positioned to drive further recovery by increasing throughput.

Explaining how Starbucks stays ahead by creating digital experiences, president & CEO Kevin Johnson said, “In response to clear shifts in consumer behaviour and preferences, we are now accelerating strategic initiatives for the future and positioning Starbucks for continued long-term growth. We have moved aggressively to advance our evolution of the store base to accommodate trends that we have long seen emerging in our business that were only exacerbated by COVID-19.”

Even amid a lot of uncertainty, Starbucks has witnessed growing customer loyalty and plans to enhance Starbucks Rewards loyalty programme further by introducing a new, pay-as-you-go option for members in the US and Canada.

“In every industry, there are periods of disruption that create a great opportunity for those businesses that adapt to the disruption, invest in relevant ways and strengthen their differentiation and competitive advantage. Those businesses that fail to evolve, typically fall behind. Given the strength of our brand, our advanced digital capabilities and our strong balance sheet, I believe this is one of those rare opportunities to move aggressively and further differentiate Starbucks from our competition,” Johnson stated.

 

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