Why the Starbucks App Outperforms Heavyweight Mobile Payment Players

While Apple continues to grow Apple Pay’s position as the leading mobile payments platform, ahead of competitors Google Pay and Android Pay, eMarketer recently revealed that Starbucks is surprisingly outperforming the tech leader.

Although the Starbucks payment and loyalty app, can only be used in Starbucks stores it had nearly 1 million more users than Apple Pay in 2017 and is estimated to have a total of 23.4 million users across America by the end of 2018. By contrast, Apple Pay is projected to be used by 22 million people, while Google Pay is said to have just 11.1 million users by the same time.

"The Starbucks app is one of the bigger success stories in mobile proximity payments." analyst Cindy Liu also notes that Starbucks' loyalty rewards program has helped their positive reception. "For users of the app, the value of paying with their smartphone is clear and simple - you can save time, all while racking up rewards and special offers."

The secret behind Starbucks’ success is in giving their customers more than their mobile payment competitors. With Starbucks, customers are getting more for both their time and their purchases.

What this means for Starbucks

Valuable Data

Through their Mobile Loyalty & Payment app they’re able to not only gain valuable customer transaction data but can link product data to specific customers. All this allows them to build a clearer picture of who their customers are, what they like and when. Giving them the upper hand when it comes to business forecasting.

More Engagement

Because the payments process is so easy, and the rewards are relevant their customers are more engaged, and they end up spending more. The mixture of incentive and ease places them positively in the mind of consumers which makes it more likely that they come back.

Better Brand Affinity

The process doesn’t just make customer’s lives easier but actually gives them more which means their customers feel better about the brand. This kind of value-add digital offering has all the elements necessary to help brands build better customer affinity.

We've also seen these kinds of results in South African coffee company Vida e Caffe's loyalty & payment app which was voted in the top 5 easiest to use loyalty programmes in SA. An incredible result considering other chart-topping programs include Clicks and PnP Smartshopper which have far larger resources behind them.

Want to compete with heavyweight payment and loyalty apps? Learn more about wiGroup's Mobile Payment and Loyalty solutions.

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