Starbucks also uses data to help align its menu and product lines with consumer preferences. For example, when building out its grocery lines of k-cups and bottled beverages, Starbucks used both data from its stores as well as customer market research to decide which products to create.
Starbucks contracts with a location-analytics company called Esri to use their technology platform that helps analyze maps and retail locations. It uses data like population density, average incomes, and traffic patterns to identify target areas for a new store. Starbucks uses a both local and corporate level approach to new stores.
Finally, through a partnership with a location-analytics firm Esri, Starbucks also uses data to ‘ forecast’ the economic viability of opening a new store in a particular locality based on population density, average incomes, and traffic patterns.
This begs the query “How starbucks uses business intelligence?”
Since 2017, Starbucks has implemented AI and data science to drive business through its Digital Flywheel program. Starbucks’ program is centered around four pillars: rewards, personalization, payments, and orders. Microsoft has been involved in enhancing the AI efforts.
For example, when building out its grocery lines of k-cups and bottled beverages, Starbucks used both data from its stores as well as customer market research to decide which products to create. One finding was that many tea drinkers don’t put sugar in their tea, so Starbucks created two unsweetened tea k-cups [iv].
Starbucks is using predictive analytics to turn customer loyalty card data into insight . Eric is the Director of Thought Leadership at The Institute of Business Forecasting (IBF), a post he assumed after leading the planning functions at Escalade Sports, Tempur Sealy and Berry Plastics.
How does Starbucks know what coffee you drink?
Data Scientists at Starbucks know what coffee you drink, where you buy it and at what time of day. Paring this with data from millions of other users, along with other correlating data, they have very real and actionable insights.
Another thing we wondered was how many users does Starbucks have?
The mobile app has more than 17 million and the reward program has 13 million active users. These users alone create an overwhelming amount of data about what, where and when they buy coffee and complementary products that can be overlaid on other data including weather, holidays and special promotions.
Though Starbucks uses generally available data to inform its decisions such as store location, its true competitive advantage is its trove of exclusive customer data . Starbucks has more than 14 million people signed up for its Starbucks Rewards loyalty program.
What is Starbuck doing with big data and artificial intelligence?
Starbuck 90 million transactions a week in 25,000 stores worldwide the coffee giant is in many ways on the cutting edge of using big data and artificial intelligence to help direct marketing, sales and business decisions .