Starbucks Unlocking Mobile App to Non-Rewards Members to Expand Personalized Promotions
Starbucks is investing in its revenue growth management capabilities to help strengthen its relationship with consumers.
The company is looking to increase its promotion efforts around mobile order and pay, creating more targeted pricing and product offers that not only elevate the consumer experience but lead to more tangible financial benefits for the business.
“We are able to leverage technology to be able to be more targeted and know more specifically who you are as a customer, what your taste and preferences are, and how we attract through location offers, through daypart offers, through offers in inventory,” said Starbucks EVP and CFO Rachel Ruggeri during the recent dbAccess Global Consumer Conference.
As one of the company’s biggest marketing levers is its mobile app, Starbucks is opening it up for non-rewards members starting this July. This will help expand visibility into the promotional benefits of being a rewards member and using mobile order and pay, helping to drive an expected $1 billion over the next three years as a result of the effort.
“Over time, as I mentioned with the investments we are making in revenue management and digital storyboards, we'll be able to be more personalized in those experiences and offers,” said Ruggeri.
The company plans to use the insights garnered to drive momentum in in-store visits during particular times of the day. For example, if a consumer used to come in the afternoon, Starbucks might provide an incentive to continue that trend, personalizing the experience to strengthen the relationship.
The ultimate goal of the campaign is to drive awareness of the value of the app — that it’s where the best offers are located, and the benefits begin when they download, move through activation, and then increase their spending, said Ruggeri.
