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Loyalty Starbucks

Starbucks to start sending personalised offers in real-time

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By Natalie Mortimer, N/A

April 22, 2016 | 2 min read

Starbucks will soon be targeting its consumers with real-time personalised offers across its entire digital offering after seeing targeted promotions help boost the success of its loyalty programme.

The coffee company said existing technology had constrained its ability to target consumers in the moment, however it has been testing out new ways to serve up “significantly improved targeted communications” to individual customers based on their specific tastes and interests.

“Over time, we will expand this capability to a more robust mobile app centric model that enables us at the very moment a customer orders to provide relevant suggestions and recommendations and, when appropriate, incentivized offers to delight our customers. As you can see, we are managing a significant number of accretive changes related to loyalty, digital and Stars Everywhere,” the company’s president, chief operating officer & director Kevin Johnson told analysts last night (21 April) on its quarterly earnings call.

He called loyalty “the cornerstone of our digital flywheel” and said that last week alone Starbucks added more than 280,000 new 'Rewards' members, boosting active loyalty members to 12 million in the US.

Mobile Order and Pay continues to be a success. Usage doubled year-over-year with the company now processing 8 million 'Mobile Order and Pay' transactions per month. The offering represented approximately 4 per cent of total transactions in the quarter, which was a 40 per cent increase sequentially.

Overall, Starbucks reported that sales were up 7 per cent in the US and 6 percent globally. Revenues are up 9 per cent to a Q2 record of $5bn.

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