Starbucks Mobile Payments

All types of businesses require some amount of social media promotions and strategies that could help shape it in the best possible cast. One of the premier brands of today, Starbucks has used the all new concept of mobile marketing to its full potential and have moved ahead to become the pioneers of using mobile apps, specially made to cater to their unique user base.

Although in the smartphone era, mobile phones have become more than a necessity. Considering the impact and the growing usage of the device, using it for effective promotional strategies and social media campaigns will not be a bad idea. All said and done, the concept of mobile marketing did not hit the market for long until some brands opted to take the risk and eventually came out with flying colors.

One of these bands is Starbucks. Mobile makes up 10 percent of Starbuck’s total U.S. revenue. With about four million customers using their mobile phones to pay for their coffee, which was expected to double by the end of 2013. According to the first quarter reports, 10 million customers are using the mobile payment app to pay for food and coffee purchased from the famous coffee chain in the world.

According to Gene Signorini, vice president of mobile insights at Mobiquity, “By watching what they get right, and even what they might get wrong, other companies can adapt these lessons to their own specific business requirements and become fast-followers in mobile payments.” Starbucks has definitely set very high standards in front of the many other brands by enabling such a massive hit with their mobile payment app.

Adding to the long list of benefits that a customer may derive by using the app are the reward points that are added to a customers account every time he makes a purchase. During the first-quarter of 2014, Starbucks processed more than 40 million new Starbucks cards, representing $610 million in the United States and Canada.

Although off late the brand has been facing certain errors and issues with its mobile app. With concerns about the registered customers credentials, and Starbucks’ insecure handling of sensitive user information in their iPhone app, there were raised eyebrows on the app. But as it seems and as the reports indicate there has not been much of a difference.

The team is for sure taking the necessary steps to ensure that none of their customers feel cheated and are happy with their association with Starbucks. Keeping aside all other issues and problems, Starbucks has proved to be one of the leading companies that has effectively used mobile marketing as a way to promote their brand as a whole.

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