From Morning Brew to Evening Perks: How Starbucks' App Keeps Users Caffeinated and Connected
Today, we're exploring the Starbucks mobile app – a digital product that's reshaped how millions interact with their daily coffee ritual. With over 35 billion active users and 50% of US orders coming through mobile, it's a prime example of successful digital transformation in retail.
Let's break down a typical user's journey and extract some valuable product management insights:
User Persona - Corporate Employee
6:30 AM: Wake-up and Order
User receives personalized notification about a new seasonal drink.
Places mobile order for regular coffee + new item, selecting nearest store.
Sets pickup time for 7:15 AM.
Stats:
50% of Starbucks customers use the mobile app to place their orders.
Starbucks saw a 10% rise in revenue from mobile orders in 2020.
Starbucks' morning customers (6 a.m. to 10 a.m.) account for 49% of its daily traffic.
PM Insight: Contextual marketing and streamlined ordering process reduce friction in the user's early morning routine.
7:15 AM: Pickup and Payment
User bypasses line, collects order from mobile pickup area
Payment processed automatically, rewards updated instantly.
Stats:
About 70% of Starbucks orders are placed to-go.
PM Insight: Seamless online-to-offline experience enhances customer satisfaction and operational efficiency.
10:30 AM: Break Time Engagement
Push notification reminds user about ongoing "Star Dash" challenge.
User checks progress, considers another purchase to earn bonus stars.
Stats:
48% of Starbucks customers visit the store more frequently due to the loyalty program.
In 2021, Starbucks had over 23 million members in its U.S. rewards program.
PM Insight: Gamification in loyalty programs drives repeat engagement and increases purchase frequency.
1:00 PM: Lunchtime Social
User sends a coffee to a friend's app using "Shake to Pay" feature.
App suggests pairing options based on past purchases.
Stats:
60 million customers are served in Starbucks stores each week.
PM Insight: Social features and personalized recommendations expand use cases and enhance user value.
4:30 PM: Afternoon Boost
User locates nearby store using in-app AR feature
Places another order with saved customizations.
Stats:
Over 90% of menu items are customizable, enabling customers to tailor their drinks to their tastes.
PM Insight: Leveraging device capabilities (AR) and user data creates a tailored, convenient experience.
8:00 PM: Evening Reflection
User receives daily summary: calories, spend, stars earned.
Reviews progress towards rewards and sets up tomorrow's order.
Stats:
According to a survey, 41.8% of Starbucks customers visit the store daily or almost daily.
Over 16% of Starbucks customers in the U.S. buy something from Starbucks every day.
PM Insight: End-of-day recaps encourage habit formation and preview next-day engagement.
Key Takeaways for Product Managers:
Balancing utility with engagement features is crucial for daily-use apps.
Seamless online-to-offline experiences can be a significant differentiator.
Personalization and contextual interactions drive user retention.
What's your favorite feature of the Starbucks app? How has it changed your coffee routine?
