5.8. Starbucks' Mobile Ordering App

Starbucks applied design thinking to its mobile ordering app, allowing customers to order and pay for their drinks ahead of time. By understanding the pain points of waiting in line, Starbucks created a solution that enhances the customer experience, increases efficiency, and boosted their sales by $4 billion.

Empathizing: Starbucks began by empathizing with its customers to understand their frustrations and challenges with the traditional in-store ordering process. They observed and listened to customer feedback regarding long wait times and the desire for more convenience.

Re-defining to understand: After gathering insights from customers, Starbucks re-defined the problem statement to focus on improving the ordering experience by reducing wait times and increasing convenience. They sought to understand not just the symptoms of the problem (long lines) but also the underlying needs and desires of their customers, especially since long lines could mean that a customer would simply give-up or drive away due to perceived wait times at the drive-thru window.

Ideating: With a better understanding of the problem, Starbucks engaged in brainstorming sessions to generate innovative ideas for a mobile ordering solution. They encouraged creativity and collaboration among team members to explore various concepts that could address the identified pain points while aligning with Starbucks' brand values. One of the ideas was to drive the app with a loyalty program. By associating the accumulated customer data with AI and machine learning, the automated personalized incentives help the company to push new products and influence consumer habits in what the chief strategy officer of Starbucks has called personalization "the single biggest driver...of improved spend per member."

Prototyping: Starbucks then created prototypes of the mobile ordering app to bring their ideas to life in a tangible form. These prototypes allowed them to test different features and functionalities, such as order customization, payment options, and pickup preferences, before fully developing the app. Specifically, the designers point out that their initial prototype proved how a location-enabled mobile app would improve not only speed but also accuracy in drive-thru pickups.

Evaluating: Starbucks conducted extensive testing and feedback sessions with customers to evaluate the usability and effectiveness of the mobile ordering app prototype. They collected data on user interactions, satisfaction levels, and any issues encountered during the ordering process to identify areas for improvement.

Implementing: Based on the feedback received and insights gained from the evaluation phase, Starbucks made necessary refinements to the app and proceeded with its implementation. Initially launched in specific regions in 2015, the app progressively expanded to new markets, offering a more convenient and streamlined method to order their preferred beverages. Launch Consulting confirms that, with over 30 million users, mobile ordering accounts for over 16% of Starbucks's revenue.

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Discussion questions related to Starbucks

  1. How can a quicker experience at the drive-thru or even for an in-store experience help the environment?
  2. How did Starbucks empathize with its customers to understand their frustrations and challenges with the traditional in-store ordering process?
  3. What were some of the problems Starbucks wanted to fix with their mobile ordering app to make ordering coffee easier?
  4. How did Starbucks accumulate customer data and use AI and machine learning to enhance the mobile ordering experience?
  5. How does the Starbucks ordering experience impact the environment? Can you imagine other practices that could be implemented in other areas that reduce the time while cars are idling?
  6. How did Starbucks evaluate the usability and effectiveness of their mobile ordering app prototype?
  7. How did they use feedback to make refinements before implementation?
  8. What did the company do to address concerns about privacy and security, particularly in relation to customer data and payment information, in the implementation of its mobile app?
  9. What specific features did they prioritize to enhance the customer experience?
  10. What were some of the key problems or pain points that Starbucks aimed to address through the development of their mobile ordering app?