Starbucks supports mobile, digital and loyalty mix to power brand

Starbucks has outlined plans to enhance its mobile, digital and loyalty operations as it looks to secure future sales in the fiercely competitive coffee market.

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Starbucks has promised further updates to its mobile, loyalty and digital platforms int he coming months.

The Seattle-based retailer is beefing up its My Starbucks Rewards program by adding new features including its recently revamped food range, which debuted in the UK earlier this month.

It claimed during an earnings call with analysts today (31 October) the Starbucks card global balance was $4bn (£2.5bn) at the end of its fourth quarter following its expansion to 11 new markets including Germany and Hong Kong. The company wants the rewards program to establish a “Starbucks currency” that can be used across multiple platforms in order to foster more loyalty among consumers.

Starbucks is also planning updates to its mobile apps promising features including mobile ordering and digital tipping are “on the way”.

Howard Schultz, chief executive of Starbucks, added no “single competency and capability” had amplified the brand more than its investment in all three platforms.

The announcement comes in the same week the brand began allowing fans to buy coffees for a friend via Twitter. It is being trialled in the US with the company adding there are no current plans to extend the initiative to other markets.

Starbucks posted a 7 per cent jump in like-for-like sales for the three months to 30 September, including a 2 per cent increase in sales across Europe, the Middle East and Africa. It said it was “encouraged” by the “solid performance” in the UK – its singled biggest market in Europe – where it us currently pushing for a larger slice of the fast-food market.

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