Starbucks Corporation (NASDAQ:SBUX) is venturing into the realm of artificial intelligence to determine what customers want before they even know it by studying the coffee habits of the customer.
The company is adopting technology, specifically AI to determine what the customer wants. Starbucks plans to roll out a digital flywheel program which will be linked to the Starbucks Reward members’ accounts. The program will rely on siren-based sorcery as well as complex algorithms to study the coffee consumption habits of the customers. It will analyze various factors such as work days or weekends, the time of the day, prevailing weather conditions, and customer data such as their birthdays. It will then use this information to make suggestions.
“Starbucks is one of the best companies in the world that connects brand, user and consumer experience between digital mobile and the real world,” stated Brian Solis, an analyst at Altimeter.
Solis also pointed out that Starbucks is still committed to venturing deeper into technology. It’s digital flywheel will allow the firm to integrate its services with the digital world. It is a dynamic strategy that will allow the company to come up with new ways of catering to its customers. The company hopes that the digital flywheel strategy will help attract customers and keep them excited about the new innovation.
According to Matthew Ryan, Starbucks’ global chief strategy officer, the company’s mobile app will start integrating push notifications as well as real-time triggers to keep customers deeply engaged. Customers could theoretically make their order through the push notifications or via text if they happen to be near one of the Starbucks outlets.
Mark Astrachan, an analyst at Stifel told The Street that mobile is quite a promising platform for Starbucks. The new strategy highlights the fact that the company is definitely willing to venture into technology to boost its performance and is already coming with ways of doing so. The new technology gets customers making food and snack orders that they would usually not make to accompany their coffee.
Starbucks stock closed the latest trading session on Friday at $54.00 after a 9.24 percent drop from the previous close.