Tuesday, April 27, 2010

Hot Topics: Starbucks iPhone App

This week, I overheard someone say they ordered their morning Starbucks latte with the swipe of their iPhone.  I personally do not have an iphone, or even an ipod touch, but many people in my life do and every now and then I get to dive into the world of Apps (short for applications you can buy for your iphone).  When iPhones were introduced, I would borrow friends’ and enjoy poking around and exploring all of the calorie counting, recipe creating, or physical activity journaling Apps available.  There’s quite a selection of healthy lifestyle promoting Apps out there!  Some are clever and useful, while other seem like a waste of Gigs.  When I heard about this Starbucks ordering App,  I asked my closest iPhone companion (who also just happens to be a committed Starbucks customer) if he uses the program.  He said “What... NO? What can it do?”  So we investigated and here’s what we discovered:

Last September, Starbucks introduced and began testing the iPhone payment App in 16 Starbucks locations.  Now, the App can be used at over 1,000 Target/Starbucks locations.  It is NOT yet available at individual establishments, but plans are in the works. So what does this App do?

First, register a Starbucks giftcard, or a personal credit card with the App.

Then, before you arrive, or while you are waiting in line, you select the drink, size, type of milk, any additions (whipped cream, extra flavor shots). Then, you can type in any other information that your order might need, like “save room for milk.” or add on any additional snacks or baked goods to the order.  Once your order is completed, a bar code is created and is then scanned at the register. The price of your drink is charged to your registered card, and the food/drink order prints out and is given to the barista.  The App then saves your order, so that the bar code can be pulled up and used in future orders.

Interesting and convenient App, if you order the same items everyday.  But if you like to switch it up, I can see if taking up too much time to enter the different orders.  I also wonder if this App reduces the number of order errors Starbucks encounters.  Or if your drink repetour is well-established, does this App increase or decrease your time waiting for a drink?  I could see myself getting 'fancier' with my drinks (half-caff, soy, extra hot, etc) once I visually see all the options available to me.  That would probably increase my wait, due to all the additional details - thus negating the intent of the App!  I also wonder if the calorie content is available on the App (I wasn’t able to find that specific feature).

Props to Starbucks for creating an App that makes the consumer feel in control and educated about their choices.  However, the biggest benefactor of this App is Starbucks itself.  They now can reach out to their target audiences with FREE (and personalized) advertisements about new products, special events, or deals.  For instance, if they see that a customer loves their peppermint mocha latte around the Holiday Season, perhaps they would like the pumpkin spice latte at Halloween?  So Starbucks could shoot them a quick ad around October 1st informing them of the latte.  Free, simple, and effective.  I feel like this will soon be a trend for other familiar food establishments, especially those that need many steps to an order, like Subway, Chipotle, or Pinkberry.  I’m interested to hear more about other Apps that are helping transform the Food Service Industry or Dietetics, any others I should research?

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