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| Adam Brotman, Starbucks chief digital officer, talks about the company’s new mobile ordering app(AP Photo/Ted S. Warren) |
Starbucks Corp is pushing
into digital ordering to increase the ordering convenience and reduce time consuming for customers. In order to do so, the Seattle-based company has hired
former Adobe Systems Inc. executive Gerri Martin-Flickinger to lead the technology
team. According to the article, technology is being an essential part in Starbucks' growth strategy, 20% of transactions in the US
made last year was by using mobile devices. Therefore, Starbucks just released
a new mobile app that allows customer to order and pay for beverages in advance
and come to pick up.
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| Starbucks mobile order and pay |
The release of Starbucks'
new mobile app is related closely to marketing. Due to its upgrading of
Information system, the mobile app includes several features such as refilling the
money in one's account. Customers can also customize their drinks while using
the app and save that customized beverage for future purchases. These types of conveniences
not only save so much time for customers but the company also applying well the customer
lock-in marketing strategy, which increases the switching cost to the
customers dramatically. Therefore, the customers will find less reasons to switch from
Starbucks to other brands.
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