Starbucks' Brand Recognition with its E-Commerce Initiatives

Over the years, Starbucks has created a recognizable brand all over the world. When you see a mermaid logo with a green background, the first thing that comes to our minds is Starbucks. We immediately think of an aromatic coffee and the relaxing ambiance of their physical stores. But the brand recognition of Starbucks rapidly increased with the company’s Electronic Commerce initiatives.

If not all, most of the people are already looking for ways to save time and effort that is why consumers would choose to buy products from companies that offer them easier and faster transactions. The mobile payments of Starbucks give customers an experience to go cashless while enjoying their coffee. This EC initiative increases brand recognition of the company. When customers are in a hurry but they want to grab a drink, they won’t have to worry as long as they have prepaid cards or Starbucks mobile app installed on their mobile phones.

Consumers nowadays prefer companies that give importance to every penny they spend on buying their products. That is how My Starbucks Rewards attracts loyal customers. It is a win-win program for both the company and the customer. The company gains its profit and retains its existing customers. While the customer receives extra benefits for being loyal to the products they patronize.

The e-gift card program is also another way for Starbucks to increase its brand recognition by letting their loyal customers buy customized gift cards. The recipients of the gift cards may not be a regular buyer of the products. This way, they can build awareness in the minds of the recipients that the company exists. The recipients of e-gift cards are now their potential loyal customers. Another win-win program for the company and the customer.

The use of Social media like Facebook, LinkedIn, Google+, Twitter, Youtube, Flickr, Pinterest, and Instagram have also a great impact on increasing the brand recognition of Starbucks. People nowadays, including the young ones and the adults, are very active on these social networking sites.

Starbucks' "My Starbucks Idea"

Personally speaking, My Starbucks Idea is an effective way to interact with the consumers. This program serves as a way to get the first-hand suggestions of the customers that will improve the company’s products, services, and the overall customer experience. This way, the company will be able to receive feedback and reviews from their customers, the same way consumers can express their complaints, frustrations, and questions to the company. However, just like any program, there are still pros and cons that need to be addressed.

One of the advantages of the My Starbucks Idea was that the company was able to encourage customers and fans to share their ideas on how to improve the products of the company. As the company was able to receive hundreds of thousands of ideas and suggestions from their consumers and fans, the company adopted them and put to good use. Through this program, the company was able to create a lot of Starbucks’ product innovations. The company was also able to retain its consumers and increased customer loyalty. With this My Starbucks Idea, the company made each customer feel important and gave them a voice that the company listened to. Because the customers know very well what they want and with their preferences, that company delivered to them, Starbucks became the market leader and created a well-known brand. This platform was advantageous to the company as it is where suggestions like mobile payment systems and offering free WiFi came from. Hundreds of ideas that are being practiced now came from the My Starbucks Idea. Another advantage of the platform is that the company generated media attention and free advertising through the engagements of their fans and customers online. The program became a marketing tool to create and build a community that interacts and shares awesome and valuable ideas with the company.

Although it is evident that there are a lot of advantages and benefits of My Starbucks Idea, risks are also present from the program. While the platform gave customers the chance to voice out their suggestions for improvements, the platform can also be used to mock the company itself. Platform misuse and online abuse are the risks that the program carried and needed to be taken care of. The breach of personal data and information might have also been at risk for both the employees and the customers of Starbucks.

My Starbucks Idea might have its cons, its pros are what matters most. Starbucks is still receiving suggestions and ideas through its other platforms. It is beneficial for a company to listen to what their customers are saying, and act on it. Creating innovative products with their customers is a way for any company to be successful in their chosen fields or industry.

Starbucks on its digital and social initiatives

The digital and social initiatives of Starbucks are highly innovative in a way that they were able to increase their operating income rapidly. Their digital and social media promotions have created a huge impact mainly on their number of sales. The digital and social media initiatives of Starbucks gained popularity and are recognized from all over the world, and giving the company various awards and praises.

These digital and social innovations of Starbucks have created dramatic changes in consumer behavior. Because of their initiatives, consumers are already looking out for companies that give many benefits. Consumers are now becoming critical to the products and services they are purchasing. These changes are now very evident. Customers would prefer products that give them comfort. They want products that they get something from every time they purchase it. Exclusive promotions are big deal to them. They patronize companies that save them time, effort, and money. They support businesses that offer faster and easier transactions. Consumers do not just buy the product, they buy experiences. Customers buy from companies who share the same stand as for them.

Starbucks' social initiatives have created a relationship between the customer and the company. This way, customers are informed of the company’s latest happenings, and the company is keeping its customers close to them. Starbucks’ initiatives have leveled up their way of selling their products and delivering their services, which most of the companies are trying to copy. Innovations are very important for a company to last long.