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Starbucks Wakes Up and Smells the Mobile Strategy

Starbucks CEO Howard Schultz

Starbucks has the most mobile-centered strategy of any brick and mortar retailer, said Howard Schultz. “We are now averaging more than 7 million mobile transactions in our stores each week representing 16% of total tender. That’s more than any other brick and mortar retailer in the marketplace, ” the CEO told Fast Company. Another incredible statistic demonstrating Starbucks’ devotion to its mobile app is that of the $1.6 billion via smartphones in U.S. stores in 2013, 90% went to Starbucks, according to Technology Review.

Starbucks is not sitting on its app, but is getting up and expanding its mobile strategy further. Schultz announced that Kevin Johnson, former CEO of Juniper Networks, a former leader on Microsoft’s team and Bush appointee to the National Security Telecommunications Advisory Committee, is joining the Starbucks team as COO, or Chief Operating Officer. Johnson will be in charge of managing Starbucks digital and mobile platforms.

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Like the coffee, Starbucks app is addictive, and has plenty of perks as well as tracking consumer behavior and suggesting other things customers may like, reminiscent of Amazon. The ability to place an order ahead of time using the app cuts down on waiting time and lines, which improves the traffic in the store and customer satisfaction.



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