Starbucks is planning to extend its data-driven personalization strategy from its mobile loyalty app to its physical stores by implementing digital menu boards. Laxman Narasimhan, the CEO of Starbucks, discussed the company's intention to enhance personalization across all channels during a call with analysts to discuss the third quarter FY2023 financial results. The goal is to transition all stores to digital menu boards in the next couple of years to further improve personalization.
StarbucksStarbucks is planning to extend its data-driven personalization strategy from its mobile loyalty app to its physical stores by implementing digital menu boards. Laxman Narasimhan, the CEO of Starbucks, discussed the company’s intention to enhance personalization across all channels during a call with analysts to discuss the third quarter FY2023 financial results. The goal is to transition all stores to digital menu boards in the next couple of years to further improve personalization.
The brand’s previous digital efforts have been successful in increasing engagement, with rewards members accounting for 57% of tender in the United States. Despite this success, Starbucks recognizes the importance of in-store innovation, as the majority of restaurant transactions still occur in physical locations.
For Starbucks, personalization is vital to increase customer frequency and habituation. The company aims to accelerate digital innovation, including improvements in order, payment, and delivery speed to enhance personalization.
Although Starbucks is a leader in mobile ordering, it has experienced a slight decline in its position in recent months. Digital engagement with restaurants, however, is on the rise overall, with an increase in digital participation among high- and low-income consumers.
Starbucks is also looking to focus on artificial intelligence (AI) in the future. The company plans to invest in AI, leveraging its foundational Deep Brew capability as a launching pad to transform its platform and improve the customer experience while delivering productivity gains.
Sorce: Starbucks
