DRIVING OPERATIONAL EFFICIENCY THROUGH ARTIFICIAL INTELLIGENCE
Besides creating a mobile app to enhance customer experience, Starbucks also leveraged digital innovation to improve their operations.
In 2019, the company launched an AI engine to help with time-consuming tasks such as inventory management, preventive maintenance of coffee machines, and staff scheduling.
AI technology is also instrumental in helping the company identify new locations for their stores based on variables like traffic, income levels, and competitor presence. This capability makes it easier to forecast profits and avoid cannibalization, ensuring that each new store captures enough customers without negatively affecting the sales of existing Starbucks locations.
With these innovations, the company was able to make operations more efficient, pinpoint growth opportunities while minimizing risk, and better focus their efforts on delivering an outstanding customer experience.
BREWING DIGITAL SUCCESS
Starbucks’ customer-focused digital transformation strategy paid off. Their rewards program now has nearly 28 million members in the U.S., and their app is the second most popular mobile payment tool, surpassed only by Apple Pay.
The company’s global revenues grew from $9.4 billion in 2007 to $32.3 billion in 2022. This is a testament to the robust customer loyalty they’ve built up by delivering an impactful user experience.
CAN YOUR COMPANY’S TRANSFORMATION SUCCEED LIKE STARBUCKS?
Is this level of success only possible for one of the most recognizable brands in the world? Or can other businesses also drive their own transformation and become dominant players in the digital age?
At our company, FROM: The Digital Transformation Agency, we collaborate with many large organizations like Avis, NBC, Transamerica and Airbus to help them develop customer-centric digital solutions and achieve outstanding transformational results.
In our years of extensive research and experience working with successful brands in the digital space, we’ve identified the three key ideas they focus on in order to gain true customer loyalty.
We call these three factors hyper-convenience, proactive personalization, and massive value shift, and we’ll explain below what each of them means. We will also provide steps on how companies can deliver them to customers.