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    Starbucks is introducing a new mobile ordering and payment system called Starbucks 2.0 to improve the customer experience and increase sales. The system allows customers to order and pay for drinks on their phone and pick them up without waiting in line. It is projected to increase sales by 2% and provide a 15.2% return on investment through reduced congestion in stores and increased customer satisfaction despite implementation costs of $20.45 million.

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    Starbucks is introducing a new mobile ordering and payment system called Starbucks 2.0 to improve the customer experience and increase sales. The system allows customers to order and pay for drinks on their phone and pick them up without waiting in line. It is projected to increase sales by 2% and provide a 15.2% return on investment through reduced congestion in stores and increased customer satisfaction despite implementation costs of $20.45 million.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    49 views31 pages

    Slide Deck

    Uploaded by

    api-379968220
    Starbucks is introducing a new mobile ordering and payment system called Starbucks 2.0 to improve the customer experience and increase sales. The system allows customers to order and pay for drinks on their phone and pick them up without waiting in line. It is projected to increase sales by 2% and provide a 15.2% return on investment through reduced congestion in stores and increased customer satisfaction despite implementation costs of $20.45 million.

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    of 31

    Starbucks 2.

    0
    Mobile Ordering Evolution
    Welcome!

    Corporate Communication Intern Team


    Rachel Brady
    Ajitha Doniparthi
    Richie Estrada
    Greg Fina
    Andreux Reynolds
    Ayra Sabir
    Overview
    Situation
    Background
    Analysis
    Recommendation
    Communication Strategy

    Overview | Situation | Background | Analysis | Recommendation | Communication Strategy


    Inspire and
    nurture the
    human spirit...
    Our Narratives

    Convenience Quality Innovation


    Key Issues

    Order Overload
    Store Congestion

    Customer Satisfaction
    Stakeholders
    Projected Sales
    Analysis

    3%

    2%
    Recommendation
    Your drink is ready to be picked up!

    You are number 3 in line!

    Drink ready
    in 4 minutes
    Starbucks 2.0
    Demonstration
    You are number 3 in line!

    Drink
    ready in 4
    minutes
    Your drink is being prepared! Your drink is ready to be picked up!
    Analytics Dashboard
    Communication with Employees

    COO and
    Upper Regional Store
    Managem Managers Managers
    Baristas
    ent Team
    $110,000
    App Update Expenses

    $18.35 million
    Employee Training

    $1.99 million
    Advertising Expenses + Promotional Items
    Return on Investment
    $23,577,000
    Projected Increase in Sales

    15.2%
    Return on Investment

    $14,000 to $25,000
    Lifetime Value of a Customer
    Return on Investment
    $23,577,000
    Projected Increase in Sales

    15.2%
    Return on Investment

    $14,000 to $25,000
    Timeline

    2015 2017

    2014
    Index

    Situation
    Background
    Analysis
    Recommendation
    Communication Strategy
    Calculations for Increase in Sales
    5.61 billion /25,000 Total stores = Average store quarterly
    revenue total
    Average store quarterly revenue total / 3 months =
    Average monthly revenue total
    Average monthly revenue total * 2 for two month forecast
    Two month forecast total * .02 for percent increase in
    sales
    Answer * 7,880 U.S. stores = $23,577,000
    Calculations for ROI
    Total increase in sales=$23,577,000
    Total costs associated with
    recommendations=$110,000+$18.35 million+ $1.99
    million=$20,450,000
    ROI=($23,577,000-$20,450,000)/$20,450,000
    Answer= 15.2%

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