Starbucks CEO Howard Schultz always knew that mobile customer engagement was a burgeoning tool for the company’s loyal customer base. It appears Schultz was prescient in his thinking.
In December 2014, Starbucks introduced Mobile Order & Pay to 150 stores in Portland, OR. Since then, it expanded to more than 600 stores in the Pacific Northwest and, ultimately, nationwide−an initiative seen as a massive boost to customer engagement.
During the company’s Jan. 21 fiscal first-quarter conference call, Schultz noted that 21% of Starbucks transactions are completed via mobile−in store at the point of sale (via the app) or using Starbucks’ app (with Mobile Order & Pay). What’s more, Starbucks processes more than six million Mobile Order and Pay transactions per month.
“And we have just scratched the surface,” Schultz said, according to Seeking Alpha. “We have bigger aspirations for our digital plan.”
Mobile Order & Pay is available on iOS and Android devices. It’s a relatively new feature of the popular Starbucks mobile app that allows customers to place and pay for their orders in advance of their visits and pick it up at a participating Starbucks location. Following successful launches in select U.S. cities, mobile ordering is emerging as the fastest and easiest way for Starbucks customers to order ahead, then pay and pick up their purchases – providing on-the-go customers a simple and quick alternative to get their favorite food or beverage item.
The Mobile Order & Pay feature allows customers to choose a store from a map view, browse, select and customize beverage and food items, view the estimated timeframe the order will be ready, and pre-pay for the order, all within the Starbucks® Mobile App. Menu options highlight products available in specific geographic regions and stores, and orders are freshly prepared and ready for pick-up in the bar area. Mobile Order & Pay is integrated into Starbucks world-class Mobile App and My Starbucks Rewards loyalty program, providing a simple way for customers to sign up and earn coveted Stars.
Overall first-quarter sales jumped 12%, to a record $5.4 billion.
“Starbucks Coffee Company is connecting more deeply with more customers across all day parts around the world than ever before,” Schultz added. “Our plans to build over 500 coffee forward Starbucks Reserve stores in key global markets are well underway. No national or global retailer has been able to leverage a retail store footprint into a CPG business remotely approaching the size, scale, and profitability of ours.”
Technology innovation is further strengthening Starbucks, Schultz said, improving efficiency and in-store execution, increasing profitability, and allowing for an elevated customer experience, particularly to millennials.
Starbucks’ global physical footprint hovers around 23,500 stores.