Tag: starbucks

Mobile payments make up over 1 in 5 Starbucks transactions

The coffee giant is now embarking on the rollout of a new level of technology due to massive successes.

Starbucks is boosting the use of smartphone based solutions in its hundreds of coffee shop locations, greatly because of the tremendous successes it has seen in mobile payments.

Recent data has shown that 21 percent of payment transactions at Starbucks are completed over smartphones.

The successes that the coffee chain has seen has propelled it to the top of the mobile payments list, making the company the example for the way that mobile technology can be used to boost business and raise customer engagement. It has managed to accomplish this goal more effectively than any other company in the food and beverage service marketplace. It is precisely this message that was being shared along with the announcement from execs that the company had met the expectations of analysts for its fiscal fourth quarter earnings report. It reached a record breaking revenue of $4.9 billion, with profits of about $969 million.

Smartphone based ordering has been expanding outside the United States where mobile payments have been hot.

Starbucks - Mobile Payments Make Up 1 in 5 TransactionsThe mobile ordering option was rolled out in the U.S. last December. This allowed consumers to be able to skip the line by placing their coffee orders in advance through the app on their smartphone. By September, the feature reached all 7,400 stores across the country. The feature has since been making its way into additional markets with tests being launched in Canada and the United Kingdom.

According to execs from the company when they announced the company’s earnings, there have already been five million monthly transactions completed by customers who have been using the Mobile Order & Pay feature.

President of North American operations for Starbucks, Cliff Burrows, explained that “It has been incredible to see the adoption by customers across the country,” adding that “With each wave that we launch, the ramp rate has been quicker for adoption.”

It’s clear that even beyond mobile payments, Starbucks is continuing to lead the way in customer engagement and in revenue generation by way of shopper smartphones.

Mobile commerce grows as apps become more important

More consumers are beginning to rely on mobile retail apps to shop online

Consumers are beginning to use applications more frequently when doing their shopping online. A new report from Apptentive, an app marketing firm, shows that 88% of mobile users now use retail applications when shopping online. This is leading to a rise in mobile commerce activity, as consumers are beginning to favor the convenience it represents. With the holiday season coming, many people are expected to rely on their mobile devices in order to avoid large crowds at physical stores.

61% of consumers use their mobile apps to make a purchase at least once a month

According to the report from Apptentive, even consumers that prefer shopping in physical stores are using their mobile devices more frequently to find products that they are interested in. Approximately 47% of consumers plan to make at least one purchase through a mobile retail application during the upcoming holiday season. Of those that already use these apps, 61% said that they use them at least once a month.

Mobile commerce market continues to see healthy growth

Mobile Commerce - App FocusOver the past few years, mobile commerce has managed to experience explosive growth, much of which comes during the holiday season. Many retailers have begun to grow more mobile-centric, employing ways to effectively engage consumers that are relying on their smartphones and tablets. Sometimes, this comes in the form of offering mobile shoppers special deals, which has helped mobile commerce grow more attractive to consumers. Many people still do not use a mobile device to make a purchase, but they do use their devices to research products that they are interested in before visiting a store to make a purchase.

Mobile transactions are growing among retailers

Retailers are beginning to see a greater portion of their sales come from mobile commerce. Starbucks, for instance, has reported that mobile commerce now accounts for 20% of all in-store transactions, which represents more than 9 million mobile payments made every week. As mobile commerce becomes more important for consumers, companies like Starbucks are expected to place more emphasis on engaging mobile consumers in order to drive further sales.