Question

Starbucks offers an app that allows remote ordering, free Wi-Fi in stores, and a loyalty program where customers can earn a free drink after a number of purchases. Which business strategy is Starbucks following with these programs? How do these programs add value to Starbucks business?

Answer 1

Starbucks is employing a Brand Loyalty and Convenience strategy that seeks to not only make it convenient for customers to use their services, but also builds loyalty to ensure that customers keep coming back. These programs add value to Starbucks as they increase residual sales and customer loyalty.