Starbucks, a traditional company to play the technology brand

As we all know, Starbucks is a coffee shop, but in such a traditional coffee shop is hidden in a number of Internet brands of technology companies, now, within Starbucks has been the web, mobile phones, social media, network Marketing, Starbuckscard and E-commerce, Wi-Fi, Starbucks Digital Network, Emerging in-store consumption technology, and so on, unified as a digital business strategy, and these network services are equivalent to selling coffee.

Starbucks technology development, is the traditional industry, such as the development of science and technology industry pioneer, foreign tradition, internal technology, this is the internet era of all industries fate.

The fact that Starbucks is so eager to move to e-commerce, mobile payments and social-networking marketing is also a good trend now-customer demand.

On June 30, 1999, Howard Schultz, CEO and chairman of Starbucks, was one of the most embarrassing times of his life. The founder of the company was excitedly announcing to the outside world that the company that sells coffee drinks is becoming an internet company-launching portals, selling coffee and kitchen supplies online, and investing 20 million of dollars in an online chat company ... As a result, Starbucks fell 15% on the same day.

Investors can't understand why a company that sells coffee drinks is so aggressive about using the Internet, and it scares them too much. Schultz admitted to the press, "I fell over this." ”

Until August 2012 Schultz pulled out 25 million of dollars into the board of the mobile payment company Square, only to find out that Schultz never gave up his efforts to add technology genes to his company. After his embarrassment, he learned to keep a low profile of Starbucks ' makeover.

It is hard to find a large company that does not offer mobile apps or a lack of social media strategy, but Starbucks is already ahead of retail industry in this area. Today, Starbucks is not only the largest retail company in the U.S. mobile payment, but also the most popular food companies in social media such as Facebook, Twitter and Pinterest.

Schultz is so eager to move to e-commerce, mobile payments and social-networking marketing, for the simple reason that Starbucks goes where the customer is. What's more, the new technology can tie up the customer relationship inside and outside the coffee shop, which Starbucks couldn't have done before.

According to the Starbucks data, most of its consumers are using smartphones, whether they are Apple's iphone or a variety of Android handsets. Attract more and more customers to use the mobile Internet at Starbucks, which means they can track them and create an online community for their core users.

In the past, new ways have enabled Starbucks to forge a stronger relationship with its customers than ever before. Mastering the customer's consumption habits, tastes, and other data will give the company a reputation for selling the user experience an extraordinary advantage. Schultz is trying to quickly use the digital approach of the new era in a number of Starbucks marketing initiatives. Mobile payments are just a part of the big plan.

In fact, Starbucks ' recent dramatic changes have not been because its chairman, Schultz, is a technology fanatic, nor is it because the company is in the same place as technology giant Microsoft and Amazon. In fact, after the founder's return, he did not develop any new flavors of coffee drinks, but led the Starbucks, the traditional coffee chain company, quietly set off a marketing revolution.

Starbucks ' coffee chains have long been favored by consumers in many cities on the planet because it offers more than just coffee or bread, but a lifestyle. The original cold trading relationship between the merchant and the customer has been given a lot of added value by Starbucks.

Schultz is acutely aware that the biggest change in the Times is the impact of the internet and mobile phones on people's lives, and he realizes the need to incorporate this era into Starbucks products and services. So Starbucks began to move in order to follow the Times. "Digital marketing has perfected the Starbucks experience and made customers feel ' Starbucks is around," says Marie Han Silloway, vice president of Starbucks China. ”

The latest viral online video is an excellent illustration of the concept of Starbucks--in a Starbucks mobile service called early Bird, when a set wake-up alarm goes off, as soon as the user points to "get up Now" and arrives at any Starbucks store within an hour, A cup of discounted coffee can be used on a mobile phone. It's a good idea to connect your product to the daily life of your users, and it doesn't force you to sell anything to the user, but it provides humor and touches your service.

Mobile payment pioneer

When Starbucks launched its first mobile app in 2009, no one expected it to be the most active retail company in the mobile web today. The initial use of mobile phones was lackluster until 2011, when the mobile payment function was integrated. Users through the membership card number login account, not only can query all personal account information, but also directly to complete the personal credit card to the loyalty cards. In the Starbucks store consumption, at the cashier directly scan the phone application of the member account two-dimensional code, you can complete payment.

Mobile payments with mobile phones can save Starbucks staff a lot of credit card time and transaction costs. In fact, the average cost of a mobile payment is only 6 seconds, saving nearly 2/3 of the time it takes to trade a credit card at the counter. The cost of Starbucks can be further reduced by supporting square mobile payments in more than 7,000 stores across the United States.

Not only does square offer lower credit card transaction rates, but it also manages all credit and debit card transactions in the United States for Starbucks. 65% of Starbucks ' American consumers use smartphones. It can be imagined that when this group chooses to pay for mobile, it will save Starbucks a huge amount of money. Instead of a purse and a credit card, the new way is to just target the device. Customers are also more likely to enjoy the convenience.

Paying more quickly is extremely important for the retail industry. This will not only prevent customers from losing patience in long queues, giving up shopping, but also driving more sales of products. In fact, Starbucks customers are willing to spend a little more on mobile payments, because the speed of mobile payments can often trigger additional shopping impulses. "Many people don't take their wallets when they go out, but few get a mobile phone," he said. "Our goal is to continue to grow existing models while expanding other digital contacts with customers," says Adam Brotman, global chief digital officer at Starbucks. ”

The mobile payment application, which came out last January, covers 6,800 proprietary stores and more than 2000 cooperative stores in the United States.

"So far, the total number of transactions from mobile payments has been as high as 60 million. "Starbucks China vice President Marie herself is also a Starbucks mobile payment fan." In July 2013, Starbucks extended mobile payments to Canada and the UK, covering a total of 14,000 stores. At the same time in the United States market users can PayPal for their own Starbucks membership card recharge.

Transformation technology Company

Starbucks ' embrace of technology dates back to the return of Schultz in the 2008. When the Starbucks founder again came out as CEO of the company, he made a number of big decisions: to clarify the background of Starbucks in the era, repositioning the role of Starbucks. Unlike the end of most "founder returns with few good results", Schultz created a comeback for himself and Starbucks.

He insisted on a huge investment that greatly improved Starbucks ' it base, and set up a venture capital department and appointed chief digital officer to push Starbucks into a new digital era.

A series of moves, such as the investment square and the new chief digital officer, have left speculation that Starbucks will become a technology company like Amazon?

"Starbucks is a brand that is committed to connecting people, the so-called ' Starbucks experience ', not just a cup of coffee." When we see mobile internet, social media has become a part of people's lives, we redefine the way we connect people, which makes Starbucks aware of the importance of digital marketing. "Digital marketing is as important to the company's continued success as the coffee sold," Schultz said. ”

In the fall of 2010, Starbucks in North America announced the launch of the store's digital network (Starbucks Digital receptacle). Customers will be able to watch ESPN events, Nick Jr's children's show and Snag Films's documentary in the Starbucks store, free Wi-Fi internet access, and free reading of the Wall Street Journal, the New York Times, today's American, economist, and other paid content.

Starbucks, in turn, is partnering with Yahoo to link a wide range of free e-books, news, music and movies to its digital network, and to work with Apple so that customers can enjoy the downloadable music downloads on itunes, which is only available on the Starbucks Digital network.

"When people are Bakrie in the stars, we want to provide every bit of information that we enjoy-from news to music." "The combination of cafes and information that Marie says can remind people of" good old times. Historians have spared no effort to affirm the role of the café 's prosperity in the enlightenment and how to nurture the great ideas of the two post-war French Seine.

Today, Starbucks in its open new era of enlightenment, the glue of today's most fashionable digital information channels and platforms. In a Starbucks digital network of coffee aroma, I do not know how many people are thinking of this inspiration.

Marie believes that the success of Starbucks Digital network in North America is a great reference for Starbucks China, "It is our business philosophy to stay in the store and enjoy the unique experience of Starbucks." But China is really different.

Different Chinese market

After a lot of market research, Starbucks China team found that China's network ecology and Internet use habits and other regions of the world is very different. In the American market, young people are often active in networks of acquaintances such as Facebook, where the purpose and functionality of the Internet is stronger. But in China, digital space is almost a large part of people's lives themselves.

In a survey of Chinese users in Starbucks, a female customer said that she might not be able to pick up the phone in time, but when she received a message or letters on Weibo, she "will definitely drop all the work and reply immediately". So Starbucks wants to make the most of its current fan base on Sina Weibo. Starbucks releases energy to connect people. We want to do more in this direction.

In order to further expand the digital marketing business, Starbucks China in May this year chose Chi JWT (JWT) responsible for its digital marketing and social media business in China. JWT will use its in-depth knowledge of Chinese users to help Starbucks develop more creative and targeted digital marketing channels.

At the end of August, Starbucks China in the promotion of new drinks ice Shake Qin, the first use of Tencent mobile phone social applications-micro-letter marketing. On the Starbucks Coffee Cup, there will be a promotional label with a two-dimensional code. The customer scans the two-dimensional code with a micro-letter and automatically adds Starbucks China as a friend. In the next one months, users interact with Starbucks China in their micro-mail and hear different types of music.

"The two-dimensional code on the coffee cup turns the coffee mug from a simple cup into an interactive point where the brand spreads the coffee idea to the consumer." In the future, we see the mobile phone has become a more important brand communication pillar. "JWT Interactive media director Chu Youren said," through interesting content and a very interactive experience to spread the idea of educational coffee and establish positive interpersonal relationships. We hope to inspire a lively discussion, so that people will always have Starbucks in their minds. ”

When it comes to Starbucks digital marketing in China's future, mobile payments and Starbucks digital networks are a difficult topic to avoid. Because China's banking system is completely different from the US, it "does take some effort" to introduce mobile payments here, says Marie. "In the next 12 months, we will see a carefully prepared digital surprise," said the Starbucks Chinese vice-president.