Starbucks Corporation is a billion dollar global coffee company with coffeehouses in 64 countries worldwide including the USA, India, China, UK, Japan, and Canada. The company, which was founded in 1971 in Seattle, experienced rapid international expansion between 1987 and 2007, and today boasts revenues of $14.89 billion. According to a report, 4 billion cups of Starbucks coffee are sold every year. You will find a Starbucks establishment almost everywhere you look – an intentional starbucks digital marketing strategy known as ‘clustering’ designed to help the company dominate the market and wipe out the competition.
In July 2008, Starbucks quarterly earnings decreased rapidly and the company’s in-store sales figures were negative for the first time in the brand’s history. Starbucks faced a huge loss of $6.7 million for the third quarter. In the fourth quarter, profits further plunged by 97% and earnings for the year tumbled to 53%.
The Rise of New Starbucks
Starbucks realized the vision of a company must not be limited to opening a branch but to create a brand image was more important to sustain. It is not only about gaining followers but finding ways to build relationships with its customers. And this is when it opted for Digital Marketing & made its new mission to rebuild the crashed market.
As you have got a brief insight into Starbucks and its emergence, here are some digital marketing strategies that can be learned from them:-
• Rewarding Customers
Starbucks has a pleasant way of rewarding its customers who purchase their products. The Starbucks Rewards program offers incentives for buying products with free in-store refills, free products (after a certain amount of money is spent), and extra offers and discounts in the store. The coffee retailer predicts 10% year over year Starbucks Rewards growth from its triple-shot strategy. In the recent quarter, Starbucks Rewards accelerated membership by 11%.
Whether it’s a mobile app program or something as simple as a punch card or something like Starbucks Gold Card, try using a loyalty program to incentivize your customers to come back to your organization.
• Value every Customer
Starbucks has tried to approach the different target audience and not to segregate any section. While Starbucks has more than 75 million customers a month, this number includes just 15 million shoppers in the retailer’s rewards program. The majority of its customers visit the coffee house one to five times a month. Keeping this in mind, Starbucks is turning its aim towards developing digital relationships with these occasional shoppers and has launched a new labor routine, which it believes will benefit service to these sometimes shoppers.
In 2018, starting Nov. 2, Starbucks stores in the United States and Canada were bedecked for the holidays to mark the return of the seasonal flavors of Peppermint Mocha and was popularly known as Starbucks holiday.
• Social Media Marketing
Social media is a powerhouse for any marketing team, and Starbucks is doing just that throughout it. Social Media marketing has been one of the most successful marketing strategies for Starbucks target markets. This is one of the easiest steps that bring more customers within a short period of time. Different social media channel have their own set of message parameters and best practices that writers should follow in order to have more views and likes. Your social media message will be as effective as the number of people who see it. So, posting at the best time for each channel can help you maximize the audiences you can reach.
• Feedback from Customers
The website mystarbucksidea.com was made with the help of salesforce.com software by keeping in mind the Starbucks target market demographics. Here, Customers can share new coffee ideas, give feedback and Starbucks interacts with them and works upon their idea to provide the products and service that matches expectations so that it results in great customer satisfaction. Taking new suggestions Starbucks has been able to constantly able to work towards customer experience and introduce new innovative coffee products that customers are loving. On this website, there were about 500,000 people who viewed this page and provided their valuable suggestions. Also, they choose which is Starbucks famous coffee.
• WiFi Services
Starbucks wanted to offer world-class coffee experience, and every time the customer visits the store he gets to feel special. They started offering free WiFi to the customers as they step into any stores of Starbucks. Starbucks was one of the first Coffeehouse chain offering free WiFi which made customers happy. Starbucks knew anything offered for free is always appreciated. It was a new thing in the country. This strategy did wonders for Starbucks and McDonald’s and other restaurants lost some market share due to this. It was very smart and much appreciated move by Starbucks as they were very selective in choosing a partner with Starbucks Digital Network partnering the big giant in the internet world ‘Yahoo‘.
• Mobile Marketing – My Starbucks App
Apart from the Starbucks retail market, in 2009, Starbucks launched an app named My Starbucks which enabled customers to locate stores easily. Later, in 2011 there was a system of Gold Card Mobile App, where customers can purchase products using prepaid funds in any store. And it also allowed customers to order online and pay and pick facility without having to wait for their orders in a queue/outlet. The app also has a feature known as Starbucks near me now which shows you the list of Starbucks Houses nearby your location.
• Maintain Consistent Branding
By creating brand guidelines and making sure that every aspect of your marketing sticks to them, you can maintain consistent branding. Always have a clear vision of what you aim for. Be focused to your goals and keep practicing even small digital marketing ideas. This is a major part of the Starbucks marketing strategy – to maintain their branding.
The optimized and very selective approach to choose appropriated digital channel and utilization the power of Social Media and User-generated content has helped them gain popularity, increase customer base and has resulted in maintaining a strong bonding with the customers. By improvising and innovative products as per the customer suggestions and needs, Starbucks has continuously been working on giving world-class customer experience and best stress releasing coffee solutions.
Starbucks digital marketing strategy is one of the finest of its kind which aims at every section and values everyone’s suggestions. Starbucks has also been a part of controversies such as the Starbucks incident, but it has rebuilt itself into a stronger company.
In India, Starbucks in places like like Noida, Amritsar have been performing excellently. The price of Starbucks coffee in India has been kept so that it can gain maximum customers without compromising the quality. Now, Starbucks coffee is also available via online food partners such as Swiggy.
Therefore, Starbucks can be idealized to follow the digital marketing strategy in order to increase your brand name and make it more valuable.