Many retailers offer rewards for their mobile customers as incentives to engage with the brand. But one such reward that just got a shot in the arm from a major U.S. chain doesn’t come with points or freebies. Instead, it spares customers the agony of waiting in line for their orders. And experts say this convenience factor is simply a natural evolution of the mobile space as consumers grow more and more comfortable with mobile commerce.
A recent announcement from coffee behemoth Starbucks Coffee Company could be a signal that the convenience evolution is officially upon us.
To wit: Starbucks has shared a number of customer initiatives it says will “further transform and elevate the Starbucks Experience in Holiday 2014 and beyond.”
That includes mobile ordering, which will begin in Portland with a U.S. rollout to follow in 2015, as well as a “Starbucks for Life” contest and an interactive Roastery and Tasting Room slated to open in Seattle in December.
According to a press release, Starbucks will introduce mobile order and pay in stores in the Portland area before the end of the year. This will enable customers to place orders in advance and pick them up at a selected location.
“Mobile ordering will deliver convenience, frequency and speed of service and, over time, become the fastest and easiest way for customers to order, pay and pick up their purchases,” Starbucks says in the release.
A Starbucks rep did not respond to a request for comment.
“[Last holiday season] customers researched, compared prices and then bought the brands and items they wanted online, frequently utilizing a mobile device to do so,” said Howard Schultz, president and chief executive of Starbucks, in a statement. “Since that time, we have been focused on radically redefining the Starbucks retail experience for our partners, customers and stores. As a result of the work we’ve done, Starbucks is poised for a great holiday – our innovation pipeline is strong and we have a number of initiatives ready to launch during the holiday and into calendar 2015 and beyond.”
As a result, the company says it has “completely reimagined the holiday experience in stores for this shopping season, staying true to many time-honored traditions, such as the arrival of the iconic red Starbucks cups in stores, while adding innovative and relevant products for holiday shoppers,” alongside the pumpkin spice lattes HBO star John Oliver hates so much.
Starbucks is also launching an opportunity for “a select number of customers” to win “Starbucks for Life” by using their Starbucks Cards or paying with their mobile devices.
In addition to payments, Starbucks says its mobile customers can reap additional benefits like access to special events, as well as sneak previews of new products and promotions and additional opportunities to earn and redeem rewards across the Starbucks family of brands.
According to reports, 15 percent of Starbucks’ Q3 revenue was from mobile transactions, which equals about 6 million weekly orders.
Starbucks is certainly not alone in trying to make mobile customers’ lives easier. Domino’s recently added voice ordering and a virtual Siri-like assistant to its app.
In 2012, Tex Mex chain Moe’s Southwest Grill rolled out a mobile and online ordering product to give customers “a more efficient and user-friendly way to pre-order and pre-pay for their meal,” a release says. Per Google Play, the Moe’s app has between 100,000 and 500,000 installs. Burrito chain Chipotle, too, has an ordering app.
Smoothie chain Jamba Juice teamed up with PayPal to test an order-ahead feature for iPhone users in 2013.
And reports say both Taco Bell and McDonald’s are testing their own order-ahead apps, although a McDonald’s rep did not respond to a request for comment either.
In addition, coffee and baked goods brand Dunkin’ Donuts recently celebrated the two-year anniversary of its app and eight million downloads with an “Appiversary” Twitter sweepstakes that rewarded fans with mGifts.
Further, Scott Hudler, vice president of global consumer engagement for Dunkin’ Brands told Momentology, “We are planning to test mobile ordering in the fourth quarter and we anticipate adding the ordering feature to our existing mobile app in 2015. With the growth of mobile and all of the great things it can do today that we couldn’t do two years ago, mobile ordering is the logical next step. For the consumer, there is a huge benefit to skip the line, and improve order accuracy and speed.”
Senior digital strategy advisor Augustine Fou says it is all about efficiency for the customer.
“Even delivery is not optimal since you don’t know exactly when the guy will show up and sometimes it may come damaged, etc.,” he says. “[But with order-ahead apps, the] consumer is in control and they can walk over to get it, especially if the app tells them it is ready for pick up.”
What’s more, Starbucks can do this at scale, which will give the brand a sense of demand and it could perhaps later implement surge pricing like Uber or offer customers the option to pay more for faster delivery or, conversely, follow Amazon’s lead and give customers an option to choose slower delivery speeds for lower costs and/or just to save themselves logistic stress, he says.
Internet marketing consultant Paul Chaney agrees.
“Anything that will ease the pain of standing in line, especially the long lines often experienced at Starbucks, is worth trying.”
Chaney says mobile order-ahead is just another phase of the convenience evolution fostered by the growth of mobile and the advent of payment apps such as Apple Pay.
“Any technology that can make our lives simpler and easier to manage will doubtless have its day in the sun,” Chaney says.
“For mobile, that day has come.” For her part, Tessa Wegert, communications director at interactive marketing firm Enlighten, says it comes down to customer behavior and the degree to which mobile payment is already ingrained in consumers’ lives.
“These types of services resonate with heavy mobile users,” she says. “That bodes well for brands like Starbucks that are going all-in on technology and digital innovation.”
What do you think is the best reward for mobile customers?