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Starbucks has evolved from a regional coffee shop chain into a major global brand and a digital darling. In addition to bringing the Seattle coffee shop culture to every suburban mall and shopping center in the world, Starbucks pioneered mobile order & pay as we know it.

Starbucks’ digital backbone combined with its, comparatively speaking, diversified revenue streams were key to its survival over the past year. Similar to many brick & mortar businesses, revenues hit an all time low in March 2020 and, though its on the road to recovery, Starbucks is a changed company.



Starbucks’ “Digital Flywheel”
In 2017, Starbucks revealed its new digital transformation strategy: the “Digital Flywheel.” Built around four pillars (rewards, personalization, payment, and order), the goal was to merge the physical customer touchpoints with the digital to “not only drive superior business results in the short term, based on rewards, ordering, and personalization, but we also make it very challenging for digital companies to outmaneuver us in the physical world,” according to Starbucks’ Chief Strategy Officer Matt Ryan.

He went on to explain, ““This fundamental modernization of our technology stack will replace legacy rewards and ordering functionality with the new scalable cloud-based platform for rewards and ordering, improved customer data organization, and tighter integration with store-based operating systems, including inventory and production management.”

In addition to enabling Mobile Order and Pay, Starbucks reimagined customer app used artificial intelligence (AI) to personalize product offerings and discounts based on the users unique preferences and spending habits. In addition, the gold mine of data collected from the mobile app is used to drive high-level strategy on everything from location selection to in-store staffing logistics.
https://www.intelligentautomat....ion.network/transfor