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"Success Case Study: Starbucks Mobile Order & Pay" is part of GlobalData’s Successes and Failures research. It examines the details of and reasons behind the success of Starbucks’ app-based proximity ordering service in the US. It delivers the critical "what?", "why?", and "so what?" analysis to teach you crucial lessons that increase your chances of launching successful products.
Smartphone-based remote ordering is establishing itself as a powerful tool for foodservice and other FMCG businesses. The uptake of such services reflects the demand growing among consumers for solutions that minimize the time and effort spent on ordering food and complement on-the-go needs.
- Alongside the rising number of smartphone-users, proximity mobile payments have tripled since 2014, becoming a very popular payment method for American consumers. Companies, especially within the quick-service restaurant sector, should therefore seek to add ways for consumers to pay with their smartphones, for example through their mobile apps.
- The Mobile Order & Pay service on the Starbucks app is proving to be a success for the company by allowing it to take advantage of the rise in US consumers utilizing proximity mobile payments to make transactions that they would otherwise carry out in-store.
- High mobile loyalty due to Mobile Order & Pay use remains a major driver for the growth of the company. The firm worked hard at developing its digital strategy, optimizing the user experience of its mobile app to reduce friction and increase traffic for those who use the app to make purchases.
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