Starbucks integrates "digital" marketing to provide consumers with "fourth space"

In November, Starbucks offered $620 million for Teavana, an American tea brand. "We believe that tea drinks have come to the time of re-innovation and rapid development." Schultz explained the acquisition, "the acquisition of Teavana Holdings will give us an excellent position to reorganize and lead the market, just as we redeveloped espresso 30 years ago." The inconspicuous amount of the acquisition means that Starbucks is constantly looking for room for growth, extending its reach beyond coffee, while paying attention to the most fundamental thing-enhancing the customer experience.

In addition to a good cup of coffee, new technology is also one of Starbucks' ways to improve the customer experience. One of the digital businesses that Starbucks encourages consumers to participate in is the adoption of mobile payment systems in the coming years. In August, Starbucks injected $25 million into Square, a mobile payments company, and Schultz joined Square's board. After the partnership, Square will be responsible for "settling" credit and debit card transactions at Starbucks stores in the United States, and users will also be able to use the Pay with Square app at Starbucks.

Although there is now a payment system based on near-field communications, Starbucks also plans to insert a 2D barcode scanning system into its iPhone and Android systems, which means you can embed a Starbucks card in your phone. The payment system has indeed been very popular since its launch in January 2011, so that mobile payment transactions have been conducted tens of millions of times.

Based on the traditional chain operation capabilities and the use of emerging technologies, Starbucks has indisputably become the first coffee empire. With total revenue of US $13.3 billion and operating profit of US $2 billion in fiscal 2012, Starbucks has 18000 stores (including 9405 direct-owned stores) worldwide. China plans to become the second largest market after the United States in 2014. By the end of 2012, there were 700 Starbucks stores in more than 60 cities in China. At the same time, Starbucks plans to open 1500 stores in 70 cities in China and increase the number of employees from 18000 to 30, 000 by 2015.

Stores are still Starbucks' main battleground. On November 26th, Starbucks opened its 100th store in Beijing, which is also Starbucks' first master coffee store in China. All the star baristas are strictly certified Starbucks "coffee masters". They need to go through a rigorous training program of more than 80 hours in about two weeks to master coffee knowledge, how to make Starbucks coffee by hand, how to taste coffee, and various skills to communicate and serve with guests.

"everything we do today is to build a very solid foundation for our Chinese market, so that our partners can provide Chinese consumers with a better Starbucks experience per person, every day and every cup of work." Wang Jingying, president of Starbucks China, told Global Entrepreneur.

"the fourth Space"

After four years of digital restructuring backed by Howard Schultz, Adam Brotman, a former senior vice president of Starbucks Digital Venture Capital, was given a new task as chief digital officer on March 9 this year. Subsequently, all Starbucks digital projects-web, mobile, social media, digital marketing, Starbucks Card and e-commerce, Wi-Fi, Starbucks digital network, emerging in-store consumer technology-were merged and handed over to Brotman. Brotman explains that Starbucks' digital business is as important to the company's continued success as it is to selling coffee. "Digitalization helps our shop assistants and companies tell our stories, build our brands, and connect with our customers." Brotman said.

When the "third space" advocated by Starbucks is already well known, it is rapidly creating a "fourth space" based on the mobile Internet. "We are embracing different innovative digital platforms, social networks and social platforms, which are all channels for us to communicate with consumers in a 360-degree way." Marie Han Silloway, vice president of marketing and products at Starbucks in China, told Global Entrepreneur. In China, Starbucks'"fourth Space" refers to various social media and consumer connections through mobile APP, Weibo and Wechat.

The official Starbucks account already has 590000 active followers on Sina Weibo. In addition, Starbucks has 1.2 million fans on Kaixin.com and Renren. On Aug. 28, Wechat entered Starbucks and soon had 270000 friends. Starbucks brands communicate closely with customers on these social platforms every day.

Starbucks' mobile APP is also an integrated social channel that provides Starbucks with a more in-depth way to foster consumer relationships and derive the experience in stores beyond stores. Starbucks introduced the Starbucks Card program last year and launched it in Jiangsu, Zhejiang and Shanghai in April this year. At present, Starbucks has 1 million members. The membership card can also log in on the mobile phone APP and inquire about your membership points at any time.

"Starbucks believes in Content creation." Li Wei, managing director of JWT, said, "Starbucks rarely buys media, but uses limited resources to produce content to enhance consumers' experience and make them fans." Starbucks has been using this method to drive brand attention and influence. " JWT has been a partner of Starbucks in digital marketing since the beginning of this year.

Starbucks' first "ice shake" campaign on its Wechat platform is an example of how it uses social platforms to create ideas. Autumn is not a peak season for Starbucks, and in order to stimulate sales, Starbucks launched a new drink ice shake this year. Ice shake comes in two flavors, berry and lime, mixed with dried fruit and ice cubes in a transparent plastic cup, but it is a real coffee drink.

In order to market this distinctive colored coffee drink, Starbucks and JWT aim to try ice shake through sensory stimulation and ask them to recommend the drink to their friends through social media. Thus in a short time, with limited capital investment to achieve the sales target.

How can we convey emotions and resonate with consumers through virtual social platforms? Starbucks decided to use synaesthesia.

Posters, brochures and coffee cups of Starbucks stores are equipped with QR codes, and consumers who come to the stores can scan the QR codes to add Starbucks Wechat's official account. As a result, customers and Starbucks become "friends". Consumers can send an emoji through Wechat to tell Starbucks how you feel today, and Starbucks will respond to different songs according to different expressions.

"you need to be very careful what you post on Wechat. Wechat is more private than Weibo, so you need to be like a friend in the way you communicate. " Li Wei said. "on Wechat's platform, it is not appropriate to publish information with a strong advertising nature, but to enhance the experience."

Starbucks has created 26 emotions, and if you send a "sleepy" expression, Starbucks will send a passionate song. If your mood symbol shows that you are nervous right now, Starbucks will send a relaxing song.

At the end of the event, the Wechat account of Starbucks gained 193000 friends. A total of more than 323000 feelings were shared. At the same time, the number of Weibo followers increased by 15%, and Weibo generated a total of 26000 comments and 4.5 retweets. According to industry calculations, the media value generated through Weibo is equivalent to 931000 yuan.

Starbucks' plan is not only to limit communication with brands and customers, but also to provide a platform for customers to communicate with each other through social media. Not long ago, Starbucks launched the "Magic wish for Christmas" campaign. On virtual social platforms, customers can create a wish list and send it to your friends. Your friends can choose some of their wishes to help you achieve the "sharing" function advocated by social media.

Experience is supreme

No matter what kind of marketing, Starbucks always runs through one of the main lines is "coffee culture". Customers who are attracted by the store or brought in by mobile phones will get the best experience in the store, so as to ensure that there are far more repeat customers.

More and more coffee masters wearing "black aprons" are appearing in Starbucks stores. Coffee masters in black aprons not only have deeper coffee knowledge and superior coffee skills, but also are enthusiasts and communicators who are willing to share coffee culture and Starbucks humanistic spirit. They will share and teach all kinds of coffee-themed knowledge through face-to-face communication with customers. In fiscal year 2013, Starbucks plans to provide employees with a total of 230000 hours of training to improve their coffee knowledge and coffee culture. "when we recruit 'partners', the enthusiasm for coffee and the willingness to serve customers are the most important." Jeff Miller (Jeff Miller), vice president of Starbucks' operations in China, told   Home, a global enterprise.

Starbucks also uses technology to better serve new customers. There are a series of management tools behind Starbucks' coffee machine to record store operation data. during the manager's shift, the system will analyze the operation and passenger flow in the first two months, and make suggestions for scheduling, just fill in the employee's name. Similarly, the system will also analyze the demand for materials in the store, and the manager will apply according to the forecast. The way for Starbucks to operate is to standardize and simplify the process and avoid arbitrariness of personal preferences.

With the existing point-of-sale system, baristas need to translate an order into machine language when they receive an order: first determine whether the order is large, small or medium, then determine the type of drink, and then choose additives. These steps should be completed step by step, regardless of whether the customer has these requirements or not. The latest sales system enables "conversational orders"-if the customer says "large latte with a little vanilla", the barista can accurately execute the order at once.

In China, the most loyal customers visit Starbucks stores four to five or even six times a month, but Starbucks thinks there is plenty of room to increase the frequency of customer visits. Every time the customer comes to the store, the consumption will be recorded through the membership card. "our star cards and other membership activities let us know our customers' preferences for products, and Starbucks'R & D department can also use the information collected by membership cards to review whether newly developed products are popular in the market." Jeff Miller said.

Through technology, Starbucks can know the tastes of local target consumers and feedback on brands anytime, anywhere, which is particularly important for Starbucks' expansion in China. 'American companies are coming to China to look for gold, but in fact, many of them will not achieve long-term success, 'Mr. Schultz said at a recent conference. The key, he says, is to ensure that the company's business is locally relevant so that Starbucks is not as fleeting in China as other American trends.

(responsible Editor: Leo)