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Starbucks is Pioneering a Great Digital Experience for Customers
How Starbucks is building and selling a unique digital experience to its customers and why investors will benefit.
Starbucks ($SBUX) is very much in the business of selling coffee, but one of their main focus points for growth outside of in-store sales is building on an already rich digital experience for their customers. These new experiences are so powerful and compelling, that they carry the potential to fuel the majority of Starbucks' growth potential outside of promising expansion in China in the near-term. This innovation and exit from the Covid-19 pandemic make Starbucks a compelling investment opportunity for investors.
If you’re a frequent customer of the chain, you’ve likely noticed there is a lot you can do from the rewards app. Everything from ordering ahead, purchasing and refilling gift cards, and getting special promotion deals like ‘Double Stars’ day — it’s all on your phone. Through a methodical system of digital transformation, Starbucks is winning more and more of its customers’ time and money.
Coffee is simple — but the digital experiences surrounding it create elegance.
I’ll be the first to admit it. I miss the experience of going to Starbucks, buying a cold brew with my Gold Card then working for hours in my local coffee shop — getting several free refills along the way. Covid-19 has drastically impacted the ‘community aspect’ of Starbucks and their stores’ ability to act as a great place for people to meet up. To compensate, they’ve had to further boost, iterate, and rely on their digital models to sustain their business and position for massive growth post-pandemic.
Investments in our partners, beverage innovation and digital customer relationships continued to fuel our recovery and position Starbucks for long-term, sustainable growth,” said Kevin Johnson, President and CEO during the Q1, 2021 earnings release call.
The negative impact of Covid-19 extends far past the community aspect of Starbucks.
We learned during the Q1, 2021 earnings call that global comparable store sales declined 5%, driven by a 19% decrease…
