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`Mobile Commerce Daily » Starbucks’ mobile order and pay sees hot start, aided by integration » Print
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`Page 1 of 4
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`- Mobile Commerce Daily - http://www.mobilecommercedaily.com -
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`Starbucks’ mobile order and pay sees hot start, aided by
`integration
`Posted By Michael Barris On April 27, 2015 @ 4:30 am In Featured,Multichannel retail
`support,News | No Comments
`
`Starbucks logo.
`
`Starbucks’ rising mobile payments transaction volume is tied to its nascent order and pay
`system and stems from the company’s tying together of loyalty, a mobile application and its
`in-store point-of-sale system to create a commerce ecosystem.
`
`In a conference call to discuss the coffee giant’s fiscal second-quarter financial results,
`Starbucks, based in Seattle, WA, said it is on track to roll out mobile order and pay
`nationwide this calendar year after the service drove an increase in transactions in Starbucks
`stores and markets where it was launched. The feature, which will be expanded to more than
`600 stores in the Pacific Northwest following its introduction to 150 Portland, OR stores in
`December, shows how mobile has created the need for a service that that makes checkout
`quicker and smoother, as the mobile mind shift increases customers’ impatience with lines
`and long wait times.
`
`“This supports the trend of mobile growth, and specifically importance of in-app inventory (as
`opposed to mobile web),” said Chris Hansen, president of Netmining. “It’s a safe bet that
`Starbucks’ mobile app payments will trend upward over time.
`
`“A brand like Starbucks can leverage geo-targeting strategies around regions/users and drive
`to brick and mortar locations for even more targeted and personalized consumer
`engagements,” he said. “Not just targeting on mobile devices, but using real-time and
`historical mobile location data in campaigns.
`
`“We can assume that this will result in more revenue and customer loyalty through the ease
`of exchange (using the app) plus personalization (with mobile data).”
`
`Warm welcome
`The conference call was told that mobile order and pay has received a warm welcome from
`Starbucks customers by allowing them to pre-order and pay for drinks before they arrive in
`stores.
`
`

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`Mobile Commerce Daily » Starbucks’ mobile order and pay sees hot start, aided by integration » Print
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`Page 2 of 4
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`[1]
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`Mobile Order and Pay.
`
`In addition to avoiding lines and waiting for orders to be filled, they benefit from more
`efficient in-store operations and execution and enjoy an elevated Starbucks experience, the
`conference call was told.
`
`Kevin Johnson, Starbucks’ president and COO, said the company is seeing the benefits of
`having a mobile commerce platform that integrates loyalty, a mobile application, a loyalty
`card program and in-store point of sale system.
`
`Its mobile ecosystem is accelerating as the brand sees surging numbers of active My
`Starbucks Rewards club members and growing mobile traffic.
`
`“It’s into that momentum that we’ve launched mobile order and pay,” Mr. Johnson said “This
`is not a bolt-on, this gets to leverage that existing ecosystem. And I think that’s why, frankly,
`our customers are loving it.
`
`“They don’t have to download a new app, they don’t have to learn something new. This is
`just seamless for the customers.”
`
`Starbucks’ view of mobile as the future of retail, not just marketing, has earned it both users’
`trust and the freedom to test new features.
`
`Mastering payments on smartphones with unrivaled panache and penetration, the coffee
`retailer’s mobile application now averages more than 6 million weekly transactions and is
`used by more than 120 million customers, making it one of the most-used mobile apps in
`America.
`
`Starbucks’ successful diffusion of its brand has ensured that customers are receptive to new
`initiatives, boosting its prospects for the future and the rollout of Order and Pay even as
`critics say the retailer’s innovative edge has gone missing the past few years.
`
`Meeting opportunity
`Blazing its own trail, the coffee giant has excelled in both payments and marketing on mobile.
`
`

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`Mobile Commerce Daily » Starbucks’ mobile order and pay sees hot start, aided by integration » Print
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`Page 3 of 4
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`Popular rewards program.
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`“It shows that there is a market for mobile order and pay as long as the opportunity presents
`itself,” Mr. Hansen said. “Regardless of region, as long as consumers use mobile devices, they
`will utilize mobile functionalities for payment and ease of transaction.
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`[2]
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`“Seems like an indication to roll this out to other markets, he said.”
`
`Final Take
`Michael Barris is staff reporter on Mobile Commerce Daily, New York
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`

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`Mobile Commerce Daily » Starbucks’ mobile order and pay sees hot start, aided by integration » Print
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`Article printed from Mobile Commerce Daily: http://www.mobilecommercedaily.com
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`http://www.mobilecommercedaily.com/starbucks
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