Mobile payment is starting to grow, with people using their mobile devices instead of cash or cards to pay for purchases. Nowhere is this clearer than in Starbucks, which is now receiving 10 percent of its revenue from mobile purchases.
Starbucks makes millions of dollars each week, and four million of that is now from mobile payment transactions. A month ago that was three million, and last year it was two million; that’s quite an increase over a matter of months. Starbucks has managed to do mobile payments right, and is seeing plenty of profit as a result.
There are now more than 10 million active customers using Starbucks’ mobile apps, with around 80,000 new My Starbucks Rewards customers each week. It expects its membership to reach nine million by the end of the year. The company recently drove an increase in participants of its rewards membership by offering a $5 credit to cardholders who join, resulting in millions of new members and 500,000 new mobile app downloads during the two-week offer period, and the members it caught, it kept.
Starbucks’ membership program has proven successful due to its loyal customer base and the brand’s commitment to constantly improve. Customers create a relationship with the brand, and as such, earn more points that they can put to use for their own purchases. There are even plans to expand its mobile payments and rewards program into grocery stores, allowing members to gain points for packaged coffee purchased in stores.
“Starbuck’s success shows that mobile payments can be done right and successfully if you understand your customers well, you are committed to making it a success and continue to evolve over time to get the experience optimized for users,” said Gene Signorini, Mobiquity’s vice president of mobile insights. “For companies who are either just beginning to implement mobile payments, or haven’t started yet, Starbuck’s success is a good thing. Every new technology innovation requires a few leading edge companies to act as trailblazers, and Starbuck’s is filling this role.”
People around the world start their day with a cup of coffee. Occasionally they get through mid-morning with one as well; afternoons, too, or before dinner, or occasionally after for dessert. That’s a lot of coffee, and Starbucks is serving millions of them. It managed to make its mobile app work in such a way that customers can not only make mobile purchases quickly and easily, but also be rewarded for their patronage. This has led to more success for Starbucks, and proof that mobile payment apps can work like a charm when done correctly.
Edited by
Alisen Downey
