Starbucks pushes digital strategy to boost CX and cash flow

Supply chain challenges and cash flow difficulties are forcing CIOs to find innovative digital solutions to maintain the productivity and profitability of their organisation as well as the loyalty of existing customers.

 

A new report from accounting and advisory firm Kreston Reeves illustrates the extent of the problem. It found that 52% of the UK-based businesses it surveyed are experiencing supply chain delays of up to six months, with a third looking to reduce output and orders as a result. Some 62% of those businesses experiencing supply chain delays expect profitability to fall by up to 10% as a result, and 29% expect profitability to fall by up to 25%.

 

Analyst firm Gartner forecasts that global IT spending in 2022 will rise 5.5% to over $4.5 trillion as organisations turn to new technologies to help.

 

Coffee chain Starbucks is one example of a company setting the pace with a digital strategy designed to enhance cash flow while encouraging loyalty to the brand. Starbucks tech investments in the US over the past year have centred on investing in mobile and digital capabilities to build personalized relationships with customers.

 

One result is that Starbucks has hugely increased advance payments for its products. Using mobile and digital channels to promote adoption of its stored-value card has led to $3 billion of prepayments in the past year. That is up 50% on prepayments in 2019, and has been a key part of helping the organisation’s cash flow during the challenges of the pandemic.

 

Starbucks is also making additional investments in predictive analytics and automation, as well as the continued transformation of its store portfolio, offering experiences to drive even greater customer loyalty. New pay-as-you-go options are helping Starbucks to reach out to different types of customer, while the use of machine learning algorithms is playing a role in increasing the frequency of customer visits. Finding better ways to analyze customer data means that the retailer can personalize offers to customers even if they don’t belong to its rewards scheme. Automation is helping with supply chain problems thanks to improved inventory management, as well as employee scheduling and equipment diagnostics.

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on whatsapp
Share on email

Discussion

Responses

Your email address will not be published.

Founding Corporate Sponsor:

Media & Analyst Partnerships:

Contact

Membership & administration

forum co-founder

International Events Manager

© Copyright 2021. Business Innovation Leaders Forum. All Rights Reserved. | Privacy Policy

SIGN UP TO ACCESS

Please enter your details below to access this content.

  • This field is for validation purposes and should be left unchanged.

THANK YOU FOR YOUR INTEREST IN THE BUSINESS INNOVATION LEADERS FORUM

TAKE ADVANTAGE OF OUR FREE TRIAL MEMBERSHIP THROUGH TO 30th september 2022

We would like to send you more information about membership so please fill in your details below, and we will get in touch shortly. Meanwhile you can click the link below to explore the forum further.

BE INSPIRED TO INNOVATE!

RECEIVE OUR

Book of the Month*

The Serendipity Mindset: The Art and Science of Creating Good Luck

By Dr Christian Busch
Serendipity is an aptitude for making desirable discoveries by accident. To other people it looks like “good luck”, but it is more the ability to recognise and seize an opportunity, rather than have good fortune thrust upon one. Finding a wallet stuffed with money on the conference room floor is good luck, whereas holding it up and asking if anyone has lost their wallet might be the beginning of a valuable friendship – that would be serendipity.

Chance encounters, or strokes of fortune, feature in countless stories of business success. This book looks beneath the surface, reveals and teaches the mindset that can transform pure chance into opportunity. The author is director of the Global Economy Program at New York University’s Center for Global Affairs, and a lecturer at the London School of Economics.

Serendipity is an aptitude for making desirable discoveries by accident. To other people it looks like “good luck”, but it is more the ability to recognise and seize an opportunity, rather than have good fortune thrust upon one. Finding a wallet stuffed with money on the conference room floor is good luck, whereas holding it up and asking if anyone has lost their wallet might be the beginning of a valuable friendship – that would be serendipity.

The author says “This is a book about the interactions of coincidence, human ambition and imagination”. In the above example: finding the wallet is the coincidence; ambition is the desire to make something of the discovery; add imagination and you open up a whole menu of possibilities: from spending spree to earning a reputation for honesty – or even making a wealthy friend.

Business is typically forged on human ambition and imagination, but early success often feeds an appetite for control – and “control freaks” can be blind to the opportunities thrown up by the unexpected. They only see chance events as distractions. If plans go awry, they may blame the failure on “bad luck” rather than admit their own inflexible attitude.

The author himself admits to being “a German who is used to planning” and prone to feel anxious when something unexpected happens. That makes him an ideal teacher, because he has worked hard to discover and analyse the mindset that enables one to “connect the dots” and cultivate serendipity. He presents a goldmine of examples from science, business and life where an apparent mishap or failure lead to a breakthrough.

Indeed, studies suggest that around 50% of major scientific breakthroughs emerge as the result of accidents or coincidences. A well-known example is Alexander Fleming’s discovery of penicillin, launching the whole field of antibiotics. Other examples include X-rays, nylon, microwave ovens, rubber, Velcro, Viagra and Post-it Notes – where would we be without these!

The book goes beyond the ability to recognise and respond to opportunities in chaos, but the subtitle – The Art and Science of Creating Good Luck – is actually a bit misleading. True, he does show ways to develop better fortune, but it would be better to call it “inviting” or “encouraging” good luck. For example, he suggests better ways to start a conversation with a stranger – ways that will make it more likely to lead to chance connections or shared interests.

The publishers may have chosen the word “creating” to make the book appeal to the human desire to control – for control freaks are exactly the readership that would benefit the most from this book’s wisdom and practical advice.

For the rest of us, it offers a great way to rediscover the sense of play that is so important in life – and too often lost in business.

 

“Following the success of The Serendipity Mindset hardback, a paperback edition has also now been launched under the title “Connect the Dots”.

How to upload a file

This website uses cookies to ensure you get the best experience on our website More info.