Abstract
This case explores the impact of technology on the consumer experience at Starbucks. It starts with an inquiry about why consumers choose Starbucks stores, even when traveling abroad. Consumer experience is a critical strategic goal for the company, and technology has become a driving force in enhancing it. Starbucks uses technologies such as the Starbucks Mobile App, associated rewards and card systems, internet of things enabled machines in the stores, blockchain technologies connecting stakeholders, and reinforcement learning technology to analyze all the data. Students study the role of these technologies in customer experience and explore different order processes.
Keywords
Get full access to this article
View all access options for this article.
References
1.
Bateman
A
Bonanni
L
(2019 ) ‘What Supply Chain Transparency Really Means’ , Brighton, MA : Harvard Business Review . Available at : https://hbr.org/2019/08/what-supply-chain-transparency-really-means (accessed 22 December 2021 ).
2.
Bell
AC
(1937 ) A History of the Blockade of Germany and the Countries Associated with Her in the Great War, Austria-Hungary, Bulgaria, and Turkey, 1914-1918 . Richmond, UK : H.M. Stationery Office .
3.
Bernard
K
(2020 ) The Top Coffee-Consuming Countries , WorldAtlas . Available at : https://www.worldatlas.com/articles/top-10-coffee-consuming-nations.html (accessed 21 December 2021 ).
4.
Castrodale
J
(2021 ) ‘Starbucks Now Accepts Bitcoin as Payment (Kind of…)’ , Food & Wine . Available at : https://www.foodandwine.com/news/starbucks-bitcoin-frequent-flyer-miles-payment-gift-cards (accessed 11 February 2022 ).
5.
Crockett
Z
(2020 ) ‘What Happens to Unused Gift Card Money?’ , The Hustle , Available at: https://thehustle.co/what-happens-to-unused-gift-cards/(accessed 13 February 2022 ).
6.
Gibbs
M
(2013 ) ‘The Internet of Things, Huge Data, and Starbucks’ , Network World . Available at : https://www.networkworld.com/article/2163726/the-internet-of-things-huge-data--and-starbucks.html (accessed 16 March 2022 ).
7.
Law
W
(1850 ) The History of Coffee, Including a Chapter on Chicory . London, UK : William and George Law .
8.
Lewis
PT
(1985 ). Washington DC : The U.S. Congressional Black Caucus Foundation 15th Annual Legislative Weekend
9.
Luna
N
(2018 ) ‘On Kiosks, Big Chains Exercise Caution ’, Nation’s Restaurant News , Available at : https://www.nrn.com/technology/kiosks-big-chains-exercise-caution (accessed 11 May 2019 ).
10.
McKinnon
T
(2021 ) How Starbucks Is Using Mobile Apps to Significantly Increase Sales , Indigo9 Digital Inc . Available at : https://www.indigo9digital.com/blog/starbucksmobileapps (accessed 18 February 2022 ).
11.
Mearian
L
(2019 ) From Coffee Bean to Cup: Starbucks Brews a Blockchain-Based Supply Chain with Microsoft , Computerworld . Available at : https://www.computerworld.com/article/3393211/from-coffee-bean-to-cup-starbucks-brews-a-blockchain-based-supply-chain-with-microsoft.html (accessed 11 February 2022 ).
12.
Miller
CC
(2010 ) ‘On the Go and Hungry? Dinner Is an App Away ’, The New York Times , Available at : https://www.nytimes.com/2010/05/31/technology/31snapfinger.html (accessed 12 March 2022 ).
13.
Pareek
A
(2021 ) ‘How Starbucks is also a Bank?’ , E-Cell VIT . Available at : https://medium.com/e-cell-vit/how-starbucks-is-also-a-bank-80e8b65cf1d4 (accessed 16 March 2022 ).
14.
Sokolowsky
J
(2019 ) ‘Starbucks Turns to Technology to Brew up a More Personal Connection with its Customers’ , Microsoft Transform . Available at : https://news.microsoft.com/transform/starbucks-turns-to-technology-to-brew-up-a-more-personal-connection-with-its-customers/(accessed 21 December 2021 ).
15.
Starbucks
(2011 ) Starbucks Opens Its First Store in the Center of Amsterdam, Starbucks - Stories & News . Available at : https://stories.starbucks.com/stories/2011/starbucks-opens-its-first-store-in-the-center-of-amsterdam/(accessed 21 December 2021 ).
16.
Starbucks
(2018 ) Starbucks to Pilot ‘bean to Cup’ Traceability , Starbucks - Stories & News . Available at : https://stories.starbucks.com/stories/2018/starbucks-to-pilot-bean-to-cup-traceability/(accessed 22 December 2021 ).
17.
Starbucks
(2021 a) About Us: Starbucks Coffee Company . Available at : https://www.starbucks.com/about-us (accessed 21 December 2021 ).
18.
Starbucks
(2021 b) Key takeaways from Starbucks Q2 FY21 Earnings Results, Starbucks Stories . Available at : https://stories.starbucks.com/stories/2021/key-takeaways-from-starbucks-q2-fy21-earnings-results/(accessed 18 February 2022 ).
19.
Starbucks
(2021 c) ‘Starbucks 2021 Q4 Earnings Call ’. Available at : https://investor.starbucks.com/events-and-presentations/current-and-past-events/event-details/2022/Starbucks-Q1-Fiscal-Year-2022-Earnings-Conference-Call/default.aspx.
20.
Starbucks
(2022 ) ‘Investor 2022 Q1 Earnings Call’ . Available at : https://investor.starbucks.com/events-and-presentations/current-and-past-events/event-details/2022/Starbucks-Q1-Fiscal-Year-2022-Earnings-Conference-Call/default.aspx.
21.
Swan
M
(2015 ) Blockchain: Blueprint for a New Economy . O’Reilly Media, Inc .
22.
Wall Street Journal
(2022 ) ‘The Economics of Starbucks’, 12 January . Available at : https://www.wsj.com/video/series/wsj-explains/starbucks-rewards-how-the-coffee-giants-mobile-app-became-a-winner/502D3DFC-173F-45E0-9848-F1ED7B8F20EC (accessed 13 February 2022 ).
23.
Westerman
K
(2020 ) Starbucks’ New Digital Traceability Tool Is A Flop , Forbes . Available at : https://www.forbes.com/sites/kimwesterman/2020/08/31/starbucks-new-digital-traceability-tool-is-a-flop/(accessed 10 February 2022 ).