Starbucks: driving Big Data to boost business

By Sean Galea-Pace
In the February edition of Supply Chain Digital, we looked at how Big Data is transforming companies' supply chains. In this article, we take a closer l...

In the February edition of Supply Chain Digital, we looked at how Big Data is transforming companies' supply chains. In this article, we take a closer look at Starbucks’ data drive.

The coffee giant, Starbucks, is a well recognised brand across the world. Helping contribute to such global success is data and the firm has launched several different solutions to personalise its data approach.

Starbucks Rewards and Mobile App

Following the launch of the company’s rewards programme and mobile app, the firm sought how to find new ways to gather insight into its customers order habits. The mobile app has over 17 million downloads, while the reward programme has around 13 million active users. These users allow for a surplus of data to be created about what, where and when they buy coffee and complimentary products that can be overlaid on other data, including weather, holidays and special promotions.

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Members of the rewards programme and mobile app can allow Starbucks to gather information about the coffee drinks they order. Based on that data, the app can suggest other similar products that a customer might be interested in trying. This is done by targeted and personalised marketing which also allows Starbucks to tempt back customers who haven’t visited recently, as well as providing birthday discounts and other offers.

Through the Starbucks mobile app, it enables customers to place an order through voice command or messaging to a virtual barista through AI algorithms. In order to achieve success in retail, the right location is pivotal. The company oversees 25,000 stores worldwide and by 2021, Starbucks is expected to operate 37,000 stores globally.

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For more information on procurement, supply chain and logistics topics - please take a look at the latest edition of Supply Chain Digital magazine.

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