account. Customers report that paying using this
app, available for all major smartphone operating
systerns, is much faster than traditional forms
of payment. In its first 15 months of use, the
Starbucks mobile payment system processed 42
million transactions.
Many of Starbucks' most loyal customers regularly
spend time using the free Wi-Fiwireless
network offered in each store. A majority of these
customers also use mobile devices to connect to the
in-store Wi-Finetworks. Recognizing this, Starbucks
launched what it calls the "Starbucks Digital
Network," a portal designed specifically for mobile
devices as opposed to traditional Webbrowsers. The
site is optimized for all major smartphone operating
systems (iOS,Android, and BlackBerry), and
responds to the multi-touch capability of devices
like the iPad.
The Starbucks Digital Network site was developed
in partnership with Yahooand functions as a
content portal. Starbucks customers using the site
will receive free WallStreet Journal access, select
free iTunes downloads, and a wide variety of other
contento The site will integrate with Foursquare,
a location-based social networking site for mobile
devices. This arrangement will allow users to
check in and receive award points using Starbucks'
site. Because Starbucks has the most Foursquare
check-ins of any company to date, this feature has
been popular with customers.
Rather than serve ads on the site, Starbucks has
opted to offer the site free of advertising, hoping
that striking deals with content providers will make
it a profitable venture. Even if the Starbucks Digital
Network is not highly profitable, analysts suggest
that the site is an effective way for Starbucks
to improve its relationship with its most valuable
customers and a creative use of the mobile digital
platform to enhance customer satisfaction.
In addition to revamping their business to better
serve the needs of their mobile users, Starbucks
has made a concerted effort to become more
efficient, reduce waste, and use the time saved
to provide better customer service. Starbucks set
out to streamline the business processes used in
each of its stores so that baristas do not need to
bend down to scoop coffee, cutting down on idle