How would an ais help a starbucks company identify

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Reference no: EM133265120

Question: How would an AIS help a Starbucks company identify the products with the highest profit margin?

Starbucks: a tech company or your neighbourhood coffee shop?

Starbucks is using its digital platform to enhance your coffee buying experience while gaining revenue and customer loyalty.

As retail has declined in the US, stores are finding new ways to connect with shoppers and create special or convenient experiences. Starbucks has achieved this by building what they call their Digital Flywheel, focused on four pillars: rewards, personalization, payment, and ordering.

Starbucks has identified an opportunity to drive customer loyalty and increased spending through their mobile app. Currently, 18% of Starbucks' 75 million customers are members of their mobile loyalty program, but they represent 36% of sales. Furthermore, in Q3 2007, spending per member increased 8% which is double the rate of the company's same-store sales. By personalizing the app and pushing new products to upsell customers to more expensive or additional items, Starbucks has drawn more value from their customers. This is particularly important for his company who has a massive physical footprint of ~27,000 stores worldwide with plans to grow to 37,000 by 2021. For every Starbucks store, there are on average, 3.6 stores within a 1-mile radius.

Reference no: EM133265120

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