Retail & hospitality · Success story

How Starbucks turned its app into a loyalty and ordering engine

The Starbucks app combines rewards, payments and order-ahead. Rewards members now account for 60% of spend at U.S. company-operated stores.

33.8M90-day active Starbucks Rewards members in the U.S.
60%of spend at U.S. company-operated stores from Rewards members
31%of U.S. company-operated transactions are Mobile Orders
Illustrative stock photo

Background

Starbucks serves millions of customers a day, many in a hurry. Long queues at peak times cost sales, and the company wanted a closer relationship with its regular customers.

The challenge

Queues at busy times put people off, and without a direct digital connection Starbucks couldn't recognise and reward its most loyal customers or tailor offers to them.

What they built

  • Built one app for rewards, payments and ordering
  • Launched Mobile Order & Pay so customers can order ahead and skip the line
  • Let customers load money onto a digital Starbucks Card in the app
  • Used Stars and personalised offers to reward repeat visits
  • Fed app orders straight into stores to prepare drinks before customers arrive

The results

By the end of fiscal 2024, Starbucks had 33.8 million 90-day active Rewards members in the U.S. Members accounted for 60% of spend at U.S. company-operated stores, and Mobile Orders made up 31% of transactions, up from 26% two years earlier.

Sources

Public examples compiled from company reports, with sources on each page. Vozile is not affiliated with these companies and did not work on these projects. Trademarks belong to their owners.

Lessons for your business

What you can learn from Starbucks

You don't need a billion-dollar budget. The same ideas work for businesses of any size.

01

Reward your regulars

A simple points program in an app turns occasional customers into frequent ones.

02

Remove waiting time

Order-ahead lets you serve more customers at peak times without more staff.

03

Know your customers

An app gives you the data to send offers people actually want.

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