Starbucks Gives City of Roses Sneak Peek at Pay Ahead System

Starbucks

Starbucks is poised to kick off its mobile pay ahead system, giving Oregon’s City of Roses a sneak peek at the new format for ordering that the coffee giant plans to activate nationwide in 2015. About 150 Portland stores will test the new option to place orders ahead of pickup time before the end of 2014. Company officials expect the digital payment system to attract and retain more customers by making the service experience that customers receive at their coffee shops more convenient and speedy. They expect that their Millennial customer base, steeped as they are in mobile digital commerce, will quickly latch onto the newest service benefit to join Starbucks’ mobile payment app in building customer loyalty through rewards.

In Portland’s beta test of the pay ahead system, the city’s iPhone users will sneak in ahead of Android users in getting a peek at the new Starbucks app to pre-order their drinks and food. The advance warning gives the barista a chance to come up smelling like roses by delivering superior customer service, having even the most complex drinks or food orders ready to go by the time the customer walks in the door. Bloomberg reports that most preorders should be ready within about five minutes of placing the order. The company expects that this will streamline the service process in the restaurant for greater customer satisfaction. They hope the convenience and improved wait times will convince customers who are reluctant to stand in line and wait for their morning cuppa joe to give Starbucks another try.

The coffee retailer introduced a mobile payment app in 2009 that warmed up the market for digital payments for what many consider an indispensable start to their morning. In preparation for the pay ahead rollout, Starbucks is campaigning for more people to download and use the app, hoping that investment in the technology will create customer loyalty. By using the program, customers earn rewards which are good for free food and drinks. With the addition of the pay ahead system, smartphones are the commercial hub of the future and the company hopes the 15 percent of sales made by mobile devices will grow and expand their customer base.

With the holiday season coming, the chain is getting into the spirit of celebration. They plan to give ten lucky coffee lovers, who pay by mobile app or Starbucks card, the grand prize of one free food or drink item every day for 30 years. Starbucks executive vice president, Sharon Rothstein certifies that this is the first time the company has offered a reward this big. The pay ahead system test gives the City of Roses an advance peek at the technological revolution quickly sneaking up on the traditions of how people buy coffee. Starbucks’ chief digital officer, Adam Brotman vowed that the company is committed to a continual learning and improvement process as they move into this experiment with digital payments and preorders in order to accommodate their customers’ busy schedules and speed of life and boost sales by minimizing the hassle of a café visit.

In Portland’s beta test of the pay ahead system, the city’s iPhone users will sneak in ahead of Android users in getting a peek at the new Starbucks app to pre-order their drinks and food. The advance warning gives the barista a chance to come up smelling like roses by delivering superior customer service, having even the most complex drinks or food orders ready to go by the time the customer walks in the door. Bloomberg reports that most preorders should be ready within about five minutes of placing the order. The company expects that this will streamline the service process in the restaurant for greater customer satisfaction. They hope the convenience and improved wait times will convince customers who are reluctant to stand in line and wait for their morning “cuppa joe” to give Starbucks another try.

The coffee retailer introduced a mobile payment app in 2009 that warmed up the market for digital payments for what many consider an indispensable start to their morning. In preparation for the pay ahead rollout, Starbucks is campaigning for more people to download and use the app, hoping that investment in the technology will create customer loyalty. By using the program, customers earn rewards which are good for free food and drinks. With the addition of the pay ahead system, smartphones are the commercial hub of the future and the company hopes the 15 percent of sales made by mobile devices will grow and expand their customer base.

With the holiday season coming, the chain is getting into the spirit of celebration. They plan to give ten lucky coffee lovers, who pay by mobile app or Starbucks card, the grand prize of one free food or drink item every day for 30 years. Starbucks executive vice president, Sharon Rothstein certifies that this is the first time the company has offered a reward this big. The pay ahead system test gives the City of Roses an advance peek at the technological revolution quickly sneaking up on the traditions of how people buy coffee. Starbucks’ chief digital officer, Adam Brotman vowed that the company is committed to a continual learning and improvement process as they move into this experiment with digital payments and preorders in order to accommodate their customers’ busy schedules and speed of life and boost sales by minimizing the hassle of a café visit.

By Tamara Christine Van Hooser

Sources:
Starbucks Newsroom
Bloomberg
Daily Finance
CTV News
Investor Place
ABC News
USA Today

Your Thoughts?