Creating the digital "Starbucks experience" At Starbucks, coffee is big business. Since opening its first location in Seattle, Washington in 1971, the company has grown into one of the world's largest specialty foods retailers and one of the most globally-recognized brands. But Starbucks has built a billion-dollar enterprise on more than just coffee; it has succeeded in creating a unique Starbucks experience in its stores and online. This case study sets out the recipe for Starbucks' Digital Transformation success.

1. Taking the
“Starbucks Experience”
digital
Creating the digital
“Starbucks experience”
~ 100,000
~
94% of all Facebook
users are either a Starbucks
fan or are friends with one
34.8 million
DOWNLOADS
visitors on Starbucks web sites
and mobile applications
of its mobile apps /week
10 seconds
Reduced
from every card or mobile phone
transaction, cutting customers’
time-in-line by
In 2012, the company booked
$3 billion in payments
via its loyalty card
900,000 hours
Leading the way
in mobile payments
7 million
Processes
active users of its
mobile payment system
3 million
mobile payments a week
20% of all loyalty card
transactions conducted via mobile
10%
Aims to collect
of in-store
payments via mobile by the end of 2013
Engaging customers
through social media
54 million
Facebook fans
Starbucks is #1
socially engaged
company
900,000
3.4 million
followers on
Instagram
Twitter followers
My Starbucks Idea collected over
Fuels customer
driven innovation
50,000 customer submitted ideas
Bridging the online and
Starbucks
offline customer experience
Digital Network
offers:
In-store customers premium digital
content: The New York Times,
The Economist,
The Wall Street Journal
and other publications
Access to local content
such as local news, local
restaurant reviews from
Zagat or check-in via
Foursquare
Everything we are doing in digital is about enhancing and
strengthening connections with our customers in only the way
that digital can and only the way that Starbucks can.
Adam Brotman, Chief Digital Officer
Creating a digital advantage
30%
Reduced transactional
charges through its mobile
payment system, lowering
its operational costs
Prepaid
Transactions
30% of all in-store
transactions are now
prepaid, improving
cash flow
Improved stock
performance
~
~$73
$8
July 2013
2009
Sources
1. 2013 Annual meeting of shareholders
2. Starbucks still feeling a buzz from mobile payments, Mobilepaymentstoday.com, 2013
3. Starbucks Coffee 2012 Biennial Investor Conference
4. Starbucks Rates Number 1 in Study of Most Socially Engaged Companies by Research Firm PhaseOne
5. Mystarbucksidea.com
6. BusinessWeek, Starbucks Schools Other Retailers on Mobile Payments, 2012
7. MIT Sloan Management Review, How Starbucks Has Gone Digital, April 2013
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