Technology
- Liza Liza
- Apr 14, 2024
- 4 min read
How is Starbucks impacted by three disruptive technologies?
Disruptive technologies are those innovations that disrupt the way people consider and use products or services. Starbucks can use Big Data, Hyper-personalization AI, and delivery app services.
Big Data is a very large and diverse collection of all-kind data that is continuously growing. Through Big Data analysis, Starbucks can better analyze the market demand, improve supply chains, reduce waste from production, and increase efficiency. It may help Starbucks to develop insights about the possible improvement of their products, customers’ taste charges, food trends, and new food and beverage innovations.
Hyper-personalization AI is a marketing strategy that allows customers to offer super-personalized offers depending on their tastes and previous purchases. Hyper-personalization is done with the help of AI which analyzes all interactions with the company. In the case of Starbucks, they already try to include hyper-personalized offers in their mobile app. Firstly, the app itself offers a variety of options to choose from depending on your interest. Secondly, they have a personalized email system that reminds Starbucks’ customers about their events, rewards, new drinks, and all other useful personalized updates. Thirdly, Starbucks doesn’t have it, but they may consider implementing choice consulting through AI chat that will help customers make a choice that resonates with their mood and preference in the moment. All of this may significantly increase the level of sales, improve customer loyalty, and make people try new products instead of focusing on regular choices.
Delivery apps services. Starbucks allows their customers to order their drinks and food in advance and then just grab it by the nearest store. Besides this, Starbucks has their services available in popular delivery apps, such as DoorDash and UberEats. This implementation significantly impacted the company, since people now can order a delivery wherever they are. Starbucks’ services have become more available and more reachable which has also increased sales and customers’ loyalty.
To sum up, Starbucks already uses a lot of disruptive technologies, but there is still a lot of room to grow, therefore, the company is constantly working on new ways of increasing sales and improving customers’ experience.
Consumer data that is useful for Starbucks.
Starbucks is a company that operates in a highly competitive market of food and drinks, therefore, they need to collect data from their customers; data such as demographic information, purchase history, customers’ feedback, geolocation information, and social media trends.
Demographic information: This data, including age, gender, income level, and place of residence can help Starbucks in the market segmentation and more accurately direct their consumers by developing new menu offers, understanding which demographic segments are more likely to respond to certain types of promotions, and reaching out to diverse customer groups. These all ways of using demographic information enhance customer satisfaction and increase the sales level.
Purchase history: The tracking of purchase history and preference data can help Starbucks in ways, such as marketing, understanding customers’ purchase experience, personalized product development, and inventory regulation. - Marketing – With detailed knowledge of customer preferences, Starbucks can implement more effective marketing strategies based on customers’ preferences. - Understanding customers’ purchase experience – By knowing about customers’ experience, Starbucks can concentrate on the offers that are not that popular and change them or remove them from the menu. - Personalized product development – The analysis of customers’ preferences can give Starbucks insights about the change in tastes and the change in demand. - Inventory regulation – If some products are purchased less than others, Starbucks becomes aware of that in advance and more effectively manages their inventory replenishment.
Customers’ feedback: Starbucks can continuously improve their offerings and operations to meet and exceed customer expectations, ensuring that they are staying on top of the food and drinks market.
Geolocation information: This data can help Starbucks optimize its store location by opening new stores in places where there’s the highest rate of success. Also, geolocation information can be used for understanding the popularity of products in different regions.
Social media trends data: This data can help Starbucks adjust its marketing strategies and follow the current social media trends which can greatly increase the sales rate in the short term. Also, they can more quickly respond to customers’ bad experiences or concerns regarding Starcbucks’ services.
How does Starbucks collect information about their customers?
All of this information Starbucks can collect through loyalty programs, online services, social media monitoring, delivery app Starbucks purchases, external data purchases, and regular market analysis.
By using this type of data mentioned above, Starbucks can continue to innovate and grow while maintaining a strong connection with its customers, ensuring the brand remains relevant and competitive in a rapidly changing marketplace.
References
1. Galanakis, Charis M, Myrto Rizou, Turki M S Aldawoud, Ilknur Ucak, and Neil J Rowan. “Innovations and Technology Disruptions in the Food Sector within the Covid-19 Pandemic and Post-Lockdown Era.” Trends in food science & technology, April 2021. Accessed April 8, 2024. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9759022/#:~:text=Among%20them%2C%20Industry%204.0%20applications,potential%20in%20the%20new%20era. 2. Brown, Ariella. “A.I. Informs Personalization for Starbucks.” DMNews, January 7, 2017. Accessed April 8, 2024. https://www.dmnews.com/ai-informs-personalization-for-starbucks/.
3. “Easy Mobile & Online Ordering & Delivery: Starbucks Coffee Company.” Easy Mobile & Online Ordering & Delivery: Starbucks Coffee Company. Accessed April 8, 2024. https://www.starbucks.ca/ways-to-order/.
4. “Starbucks: Brewing Innovation, Nurturing Human Connection.” RSS. Accessed April 8, 2024. https://www.globalthoughtleaders.org/articles/starbucks-brewing-innovation-nurturing-human-connection.
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