Starbucks announced it will launch a “Mobile Order” program across the United States by the end of 2015. With this new program, consumers will have the opportunity to place an order via a smartphone. However, prior to this, the mobile order system, as well as a mobile payment program will be introduced to consumers in the Portland area at the end of this year.
With a massive millennial customer base, Starbucks sees an incredible opportunity just waiting to be tapped into. Today, many people prefer to conduct research before making a purchase or completing a purchase using their smartphone.
Starbucks already offers is a huge customer loyalty program whereby customers are allowed to use its mobile payment application. In exchange for using this program, customers earn rewards points for free food and lattes. According to the latest numbers, approximately 15% of Starbucks’ purchases are made with a mobile device.
However, Starbucks is not the only company that offers a mobile payment application. The company is in competition with other big names to include McDonald’s, Taco Bell, and Duncan Donuts, with the latter company having rolled out its version of a mobile payment application two years ago.
The new “pay ahead” option is designed to build a stronger customer base, specifically targeting people who would typically be discouraged to make purchases because of long lines.
In excitement to entice consumers with its mobile application during the upcoming holiday season, Starbucks’ customers who pay using a mobile device or those who swipe their Starbucks card will be rewarded with free “Starbucks for life benefits”. With this, 10 customers will win a food or beverage item daily for 30 years!
Sharon Rothstein, executive vice president of Starbucks, pointed out that nothing could be bigger this holiday than winning free Starbuck’s food or beverages for life. She also emphasized that never before has something on this grand of a scale been offered to customers.