Spotify Meets Starbucks to Create Mobile Ordering System

Current Customers Can Now Use Their Favorite Apps To Order Starbucks

Starbucks mobile ordering app has increased sales by merging with Spotify for a one stop shop experience. Consumers can now use their favorite mobile apps, like Spotify, to buy their favorite Starbucks coffee. Starbuck’s lovers can earn rewards by buying a New York Times newspaper subscription, listening to music on Spotify, or getting a ride from Lyft. Mobile app users increased 22% during the past year because of the innovations. A customer can also gain rewards when visiting Starbucks in places such as China, U.K. and Canada.

Creative Meals are Being Rolled Out

Now that the convenience of the reward program has become a staple for many customers, Starbucks is rolling  out new products. Breakfast sandwich sales and Bistro Box Lunches grew 40% and 65% respectively. This increase has led to an increase in  evening meals and beer/wine locations in urban areas. Food revenue has increased 20% in the past year alone; this has led to the best growth in the past five years.

Delivery Program a Success In Urban Areas

According to the article,Starbucks Delivery by Postmates Begins Service in Seattle, Starbucks is now incorporating a delivery system to increase mobile sales through their My Starbucks Rewards® loyalty program. The program was first tested in New York and is being rolled out in Seattle. There is a 60 minute window for delivery of food or beverages, but customers usually get their orders in as little as 30 minutes. Bypassing long lines is becoming a way of the future.

 

 

 

 

2 Comments on Spotify Meets Starbucks to Create Mobile Ordering System

  1. vwb5078
    April 18, 2016 at 8:39 pm (3 years ago)

    As an AVID Starbucks member I can say that a lot of these new installations Starbucks has come up with for their App are amazing, but not without some critiques. First off the mobile ordering system has one major flaw, you can’t order everything on the menu. Starbucks choose some select drinks that are available for mobile order; so skinny vanilla latte drinkers like me are unable to pre-order our drinks. They also recently implemented a new reward program that has many people up in arms. For the strictly coffee drinker (coffee and cream), it will take them longer to achieve that holy free drink, as it would have before. For us who purchase more detailed drinks, this change makes little difference to the amount of time it takes to get to that free drink. More information on the new reward system and its downfalls can be found here: http://www.cbsnews.com/news/starbucks-customers-are-frothing-mad-over-loyalty-program/

    I think one of the awesome changes that Starbucks has made, that you touched upon, is the increase of creative meals. Starbucks now offers not only breakfast options, but options for lunch such as wraps and sandwiches. Making it a lot more convenient for people who spend a long time in Starbucks to have multiple food options. I think Starbucks has made some really great strides towards a more relatable coffee shop, rather than the corporate persona it has given off in recent years. I do think that there are some issues that need to be addressed such as the rewards system and the full menu being available for mobile order, but don’t worry, they still get my business! ☺

  2. txb267
    March 2, 2016 at 9:57 pm (3 years ago)

    Hi Kawana! This was such an interesting blog post. I recently heard that Starbucks had teamed up with Spotify and The New York Times as a way to get consumers to buy more of their product while enticing them with reward programs. I had not really followed up on how the business proposition was going, so it was interesting to read your post and see that the mobile ordering app has indeed increased sales! As a business major, I am always interested in seeing what new ideas companies come up with to increase their revenues. Starbucks has been so successful in the past decade, and a lot of that has to do with their partnerships with other successful companies and brands. I don’t know if you saw this link, but it shows the facts and figures of Starbucks’ mobile app system.

    http://www.forbes.com/sites/quora/2014/06/13/why-is-the-starbucks-mobile-payments-app-so-successful/#1c72c1f44c2a

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