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Mobile Leadership Strategies

Analysis: Starbucks Payments, Loyalty App Generated US$1 Billion in 2013

Daily Insight | Sheryl Kingstone | February 3, 2014

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It’s well known that Starbucks is the poster child for the opportunity presented by mobile transactions and mobile loyalty programs. One news provider sought to quantify the company’s success, and the result is staggering.

 

According to Business Insider, its BI Intelligence service estimates that Starbucks’ transactions and loyalty app drove US$1 billion in revenue in 2013. In the U.S. overall, BI Intelligence reported there were $30 billion in transactions last year, meaning Starbucks accounted for 4 percent of that total. BI Intelligence came up with its $1 billion figure based on the percentage of its overall revenue that Starbucks said came from mobile transactions in the U.S. and Canada in 2013.

 

Yankee Group Research Director Sheryl Kingstone comments

 

“I hope this is a wake up call for companies still dabbling and piloting programs. Let’s not forget what made Starbucks successful: It looked beyond the transaction to understand the customer experience. Starbucks is leading the charge by also embracing many of the disruptors driving mobile-influenced retail. Yankee Group will discuss the top five mobile disruptions and their impact on retail during a webinar on Feb. 4. Garnering similar success to Starbucks in an increasingly mobile world is no easy task. To succeed, retailers must view mobile as an opportunity and develop engagement-oriented strategies.”

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