How Starbucks Uses Big Data for their Customers

When you experience cold weather, there’s a good chance you’ll be craving for Starbucks. After all, Starbucks is by far the most popular coffee shop in the world with over 20,000 stores in 62 countries. Due to its overwhelming amount of customers, they decided to implement a rewards program called My Starbuck Rewards. Because of that, they collect a large amount of data from their customers. 15-SB

One of the reasons Starbucks collects data is to understand consumer behavior. With all the data they’ve gathered, they can make better promotions to please their customers even more. With the expansion of Starbucks to selling products in groceries, it has allowed them to gather even more data. Hence, one can only imagine the amount of data that enters their database each day.

In fact, Starbucks knows half of the customers enrolled in their rewards program. This would allow them to target customers who are thinking of defecting to their competitors. They would give them discounts that would entice them to eventually return to them. It’s certainly a shrewd but wise move.