Case #3: Starbucks Mobile Campaign

Mobile marketing is an excellent way to reach a wider and more targeted audience where they constantly can be found- on their phones. One company that has effectively utilized mobile marketing is Starbucks. As the popularity of Smartphones increases, many companies can use mobile applications to promote their brand.

A leader of the coffee industry, Starbucks caught on to the mobile marketing frenzy last April by disturbing coupons to phones that employees would be able to scan and read on the phone at the point of sale. Every time the coupon was presented, a new offer would be modified and customers would be rewarded for their loyalty with free drinks or upgrades. Starbucks had previously released its Starbucks Card Mobile and myStarbucks applications in the fall. The Starbucks Card Mobile Application allows customers to set up and register a Starbucks Card, check their balances and reload their card.

Starbucks has recently announced that stores in over 1000 Targets and other locations in Seattle and California will now accept mobile payment using the Starbucks Card Mobile Application. Using this application, the customer can pay for their coffee by scanning their phone at the point of sale. All they have to do is enter their card number and the phone will display a barcode can be used the same way as the Starbucks Card to make purchases. “Now that customers can use the Starbucks Card Mobile application at Starbucks locations within Target stores nationwide, they will have more opportunities to experience the ease and convenience of paying for their favorite Starbucks beverage with a flash of their iPhone or iTouch devices” says Brad Brewer, vice president of Starbucks Card for Starbucks.

This application is targeted to any Starbucks junkie, however it is extremely convenient for someone who commutes and gets Starbucks every morning because they are typically on a tight schedule and their time is valuable. It’s for someone who likes to get coffee everyday on their morning commute but can’t afford to wait in a long line to pay. No one wants to miss their daily cup of coffee because they are running late, and no one wants to be late because they had to get their daily cup of coffee. Making paying for their drinks and food so much easier and faster by speeding up the line queue time and the time it takes to purchase their items will help these loyal customers out. Having a card like this on a phone is good because you don’t need to pull out your wallet and it can’t be lost. It’s also convenient for Starbucks to use this type of a mobile card because it’s helpful in keeping track of customers and analyzing consumer behavior. It’s a good marketing move because if customers have put money on this card on their phone, they will be way more inclined to get coffee at Starbucks than anywhere else.

For a company like Starbucks, this seems to be an effective way to market their product and reward their customers with convenience. Starbucks is a place where people go consistently- some people go every day, therefore using a mobile payment tool like the one included in this application makes sense because they will get a lot of use out of it. There is a drawback to this strategy. This campaign only reaches customers with iPhones or iTouches. There is no information as to whether Starbucks is working on an application for other Smartphones, but they seem to be heading in the right direction as mobile payment may revolutionize they way we shop.