STARBUCKS

BY
PREETHI
PITLA
TABLE OF CONTENTS

INTRODUCTION 01 02 ABOUT THE PRODUCT

BREWSPECTIVE
USER SEGMENTATION 03 04 ‘RESEARCH INSIGHTS’

PERSONAS 05 06 CUSTOMER
JOURNEY MAP

PRIORITIZED
IMPROVEMENTS
07 08 KEY METRICS
INTRODUCTION Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

HISTORY PROBLEM STATEMENT* US COFFEE SHOP LANDSCAPE

6% QoQ decrease in number of orders

1971 – Starbucks opens first store in Seattle’s Pike
2% QoQ decrease in revenue
Place Market

1982 – Howard Schultz joins Starbucks and begins

initiative for providing coffee to fine restaurants
and espresso bars

1985 - Schultz convinces the founders of

Starbucks to test the coffeehouse concept in
downtown Seattle. This successful experiment is
the genesis for a company

1985 - Schultz convinces the founders of

Starbucks to test the coffeehouse concept in
downtown Seattle. This successful experiment is
the genesis for a company

1987 - Giornale acquires Starbucks and changes the

its name to Starbucks Corporation

1992 - Completes initial public offering

1996 - Opens first international store in Japan

2010 - Free unlimited Wi-Fi in all stores

*Starbucks' fiscal year runs from October to September

ABOUT THE PRODUCT Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

STARBUCKS APP
CORE FEATURES
VISION: To establish Starbucks as the premier purveyor of the finest coffee
in the world while maintaining our uncompromising principles while we
grow
Personalized Recommendations
MISSION: With every cup, with every conversation, with every community -
we nurture the limitless possibilities of human connection

2011 - Starbucks Card Mobile App launches,

enabling mobile payment Store Locator
2015 - Customers can order ahead with
nationwide launch of Mobile Order & Pay

Ordering & Personalization

70% Payment Wallet

Orders come from the App
and Drive-Thru
Loyalty Program
USER SEGMENTATION Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

WORKING STAY-AT-HOME
STUDENTS PROFESSIONALS
RETIREES CAREGIVERS

Needs: Affordable pricing, Needs: Quick and efficient Needs: Comfortable Needs: Family-friendly
quick service, study- service, easy mobile seating, social environment, kid-friendly
friendly environments, ordering, rewards for environment, affordable menu options, quick
Wi-Fi access, and frequent purchases, and a pricing, and options for service, and easy ordering
customizable drinks comfortable environment smaller portions or lighter options
for work. meals

Challenges: Budget Challenges: Limited time Challenges: Sensitivity to Challenges: Managing

constraints, need for a during breaks, desire for noise, accessibility issues, children while ordering,
quiet place to study, and convenient grab-and-go and desire for more need for healthy menu
time management options, and preference for leisurely, relaxed service options, and time
between classes loyalty rewards that provide constraints
tangible benefits
PRIORITIZATION Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

SEGMENT RECENCY FREQUENCY MONETARY RATIONALE

Moderate spending with interest in

promotions
STUDENTS M M M Visits vary with academic schedule and
budget limitations.

WORKING Consistent high-value transactions

H H H Frequent use of mobile ordering, and
PROFESSIONALS preference for efficient service

Infrequent visits and lower spending

RETIREES L L L Prioritize comfort and affordability over
frequent purchase

STAY-AT-HOME Visits are less predictable

M L M Spending varies based on family needs
CAREGIVERS Prefer value-driven offerings.

KEY: LOW = L, MEDIUM = M, HIGH = H

BREWSPECTIVE: RESEARCH INSIGHT Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Average Spend Potential Loss of Repeat Customers & Perception of Value Technology Penetration

61 % customers mentioned that they are either on the fence or at

varying levels of dissatisfaction for value received. We can deduce
that perceived value is less than actual value
$7-$10 <= $6
42% 36%
34% 34%
Without App
47.5%
With App
52.5%
22%
$10+
22%

5% 5%
Majority of respondents mentioned $7-$10 per visit,
Strong app preference for
Highly Satisfied Satisfied Neither Satisfied Dissatisfied Highly
with a few spending $10+. This indicates that Starbucks
nor Dissatisfied Dissatisfied customization and convenience
customers are willing to pay a premium

Voice of the Customer Promotions Analysis

“It’s not always clear how many stars you get.”

Buy One Get One Free
48%
“Unless I’m overlooking this I wish I could see the price when I customize a drink. I only see the
price when I’m ready to checkout. How much extra is it for each item I add.”

“Wish that the app suggested things that I might like or let me search by low calorie options.
Often I have to look for Starbucks low cal hacks to assemble new drinks” Discounted Pairing Menu
21%
Double Star Days
26%
“Drinks are expensive, Not enough value for money.”
I dont see any promotion
5%
“Takes too long just to get a simple coffee due to all the designer drinks ppl order that
take long to make” The "BOGOF" promotion resonates strongly, indicating it should be
offered more frequently
PERSONAS Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

ABOUT THE USER VOICE OF ANNA

Young college student balancing a full course “Drinks are expensive, Not enough value for
load with a part-time job. money.”
Budget-conscious but enjoys treating herself to
coffee and snacks. “Takes too long just to get a simple coffee
Values social connections and often uses
due to all the designer drinks ppl order that
Starbucks as a place to meet up with peers or
take long to make”
work on group projects.
Free Wi-Fi and a comfortable environment are
essential to her. “No more milk and sugar available for
customers to use”

ANNA
GOALS NEEDS
Age: 18-22
Gender: Female Affordability: To enjoy quality coffee and snacks Student Discounts: Affordable menu options or
that fit within his budget. discounts specifically for students.
Occupation: College
Socialization: To have a go-to spot for meeting Loyalty Rewards: A rewards program that helps
Student friends and working on group projects. her earn free drinks or discounts over time.
Income: Limited, Comfort: To find a comfortable and conducive Study-Friendly Environment: Access to a
part-time job or space for studying. comfortable seating area with good lighting,
allowance plenty of outlets, and reliable Wi-Fi.
Location: Boulder
PERSONAS Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

ABOUT THE USER VOICE OF JAKE

Jake is a driven and career-focused professional “Their app isn't user friendly or intuitive. Too
in his late twenties. many buttons and old school feel”
His job demands long hours, and he often has to
juggle multiple tasks and meetings throughout “I like the Reward program as it gives an
the day.
opportunity to get the merchandise of
Time management is crucial for him, and he
Starbucks which is really cool”
seeks convenience in all aspects of her life.
He is tech-savvy and relies on mobile apps and
services that save his time. “The point which I dislike is sometimes the
reward is not equivalent to it's monetary
value.”
JAKE
GOALS NEEDS
Age: 28-35
Gender: Male Efficiency: To get his coffee quickly without Mobile Ordering: A seamless mobile app
having to wait in long lines. experience that allows him to order ahead and
Occupation:
Productivity: To have a reliable place where he pick up without waiting.
Marketing Manager can focus on work or hold informal meetings. Quality Assurance: Consistent product quality,
Income: Consistency: To experience consistent quality in ensuring he gets the same great coffee every
$70,000-$90,000 both coffee and service. time.
per year Work-Friendly Environment: Access to
Location: Urban comfortable seating, strong Wi-Fi, and a quiet
areas, major cities atmosphere for work.
ONLINE CUSTOMER JOURNEY Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Sign Up Explore Menu Add to Order Scan & Pay Pickup

Customer

Discover drinks, food, at home coffee and

Sign Up for Starbucks Rewards Add items to the order Pay and place the order Pickup their drinks and food
Goals

merchandise

Visit website or open mobile app*

Select the food/drink item and suggested
Sign up for Starbucks Account Select/confirm store location Arrive at the selected store, follow the
Customer
Activities

accompaniment Choose payment method

Sign in & Create Profile See listing of drinks, food, at home coffee and instructions, and collect order from the
Customize as needed (size, ingredient Reload Starbucks Card (optional)
Add preferred payment method other merchandise item available for purchasing designated area or counter.
preferences)
Save preferred store location
Touchpoints
Emotions

Business Profile: No ability to create a business

Inaccurate order : Orders are not prepared as
profile to manage purchases made during
Customization Pricing: No transparency in the requested, including missing items, incorrect
Pain Points/

business travel
pricing of customization options Rewards Redemption: Lack of transparency customizations.
Friction

Onboarding Cues: Lack of onboarding cues on Store Selection: Underlying logic driving
Single Click Re-order: No ability to re-order at a around expiration of rewards resulting in missed Delays: Unexpected delays in order preparation.
how to use the app “Previous” store location tab remains unclear
single tap opportunities to redeem them Inventory issue: Place orders only to find out
Data Privacy: Prompted to enable activity
later that some items are out of stock
tracking for personalized ads at the time of 1st
login Chat Support: Traditional IVR based support**
Business Goal

Reduce transaction times at the register, leading

Increase number of website visitors/app users Increase engagement of users Increase conversion rate and order value Optimize store operations
to faster service

Retention Rate
Adoption Rate
KPIs

Sign Up Conversion Rate Bounce Rate Abandonment Rate Customer Satisfaction Score (CSAT)
Retention Rate

*Download app **Chat Support: Traditional IVR based support available across stages Delighted Happy Neutral Annoyed Frustrated
OFFLINE CUSTOMER JOURNEY Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Explore Menu Add to Order Scan & Pay Pickup

Customer

Discover drinks, food, at home coffee and merchandise Place an order Pay for the order Receive orders
Goals

Look at the menu board displayed above the counter.

Customer
Activities

Verbally communicate the order to the barista. Choose preferred payment method Listen for the name, order number or drink to be called.
Read through the menu items.
Specify item size, type, and customizations Reload Starbucks Card (optional) Approach the pick-up counter and collect the order.
Think of potential item and customizations for it
Touchpoints
Emotions

Customization Pricing: No transparency in the pricing of Rewards Redemption: Lack of transparency around
Item Description: Lack of detailed information about items
Pain Points/

customization options expiration of rewards resulting in missed opportunities to

(including ingredients and allergen contents) and Delays: Unexpected delays in order preparation.
Friction

Order Errors: Miscommunication or misunderstandings. redeem them.

customization options Crowded Pickup Area: Overcrowding in the pick-up area
Long Waiting Times: During peak hours, customers may face Security Concerns: Some customers might worry about the
Long Waiting Times: Consider re-visiting at a later time due
long queues. security of mobile payments or card data theft.
to rush hours and absence of ordering kiosks
Business Goal

Reduce transaction times at the register, leading to faster

Provide personalized, and enjoyable ordering experience service
Promote popular items Improve the overall customer experience
Increase conversion rate and order value Encourage more customers to use the Starbucks app for
payments

Adoption Rate Retention Rate

KPIs

Bounce Rate Abandon Rate

Retention Rate Customer Satisfaction Score (CSAT)

Delighted Happy Neutral Annoyed Frustrated

Prioritization of Improvements Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

RICE
PAIN POINTS REACH IMPACT CONFIDENCE EFFORT
SCORE

Business Profile 4 4 80% 4 3.2

Onboarding Ques 2 4 50% 2 2.0

Data Privacy 2 4 80% 2 3.2

Customization Pricing 4 4 80% 2 6.4

Store Selection 4 2 30% 2 1.2

Single Click Re-order 4 4 80% 2 6.4

Rewards Redemption 4 4 80% 2 6.4

Chat Support 2 4 80% 4 1.6

KEY: LOW = 1, MEDIUM = 2, HIGH = 4 | LOW = 30%, MEDIUM = 50%, HIGH = 80%
Business Profile (Proposed) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Description
Description
Absence of dedicated business profile for managing
receipts during travel

PainPain
Points
Points
Laborious Expense Management: Entering itemized
expenses followed by uploading scanned receipts is
laborious
No Incentives: Lack of corporate incentives despite being a
repeat and loyal customer

Call to
Call
Action
to Action
Add Profile: Create business profile to streamline expense
management

Click “Get Started” on the

Click “Business” Profile Business Profile Wizard
Business Profile (Proposed) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Future
FutureState
State
The enhanced feature includes an "Add Business Profile"
option.
Users who sign up and verify their business email will
receive extra benefits through a partnership with
Starbucks, tailored to their organization.
Integration with selected expense systems will enable the
automatic import of itemized bills and associated receipts
into the expense management system during “Business”
travel mode

Key
Key Metrics
Metrics
Sign Up Conversion Rate
Retention Rate

Select EMS (expense mgmt system) that applies to enable

import of itemized expenses and receipts as a go forward
while using “business profile mode”
Enter and verify business email address
Customization Pricing (Current) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Description
Customers personalize their beverages by adding or
removing ingredients
Currently, they have no visibility into how each
modification impacts the final price

Pain Points
Lack of Transparency: Results in a negative experience if
final prices are higher
Decision Paralysis: Hesitation to customize due to
uncertainty about the final cost
Perceived Lack of Control: Not seeing how choices affect
price can make customers feel powerless
Does not display real- Missed Upsell Opportunity: Invisible pricing may lead to
time changes in pricing fewer add-ons and missed upselling chances

Call to Action
Customize: To customize your experience and help you make
informed choices, we are working on providing real-time
Final price of the
pricing updates for all modifications.
drink is only visible at
the checkout stage
Customization Pricing (Proposed) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Future State

Provides real-time pricing updates for all beverage

modifications.
As you add or remove ingredients, you'll see immediate
changes in the final price, allowing you to make informed
decisions and personalize your drink with confidence.
This update aims to enhance transparency, reduce decision
paralysis, and maximize your customization experience.

Key Metrics

Cart Abandonment Rate

Each ingredient's cost is clearly
displayed next to it, making it
easy to see how every choice
affects the total price.

Updates in real-time as users

make changes, allowing them to
see how their selections affect
the total cost immediately.
Single Click Re-Order (Current) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Description
The current Starbucks app reordering feature requires
multiple steps.
Users must navigate to order history, select a past order,
customize items, add them to the cart, and proceed to
checkout.
Pain Points
Multiple Steps: Reordering requires navigating through
several steps, making it time-consuming.
User Frustration: Frequent customers may feel frustrated
with the repetitive reordering process.
High Drop-off Rate: The complex process may cause
customers to abandon orders midway.
Lack of Convenience: The current process doesn't meet
modern expectations for convenience, potentially lowering
satisfaction and retention.

Call to Action
Order Now: Streamline your Starbucks experience! Reorder
your favorites in a few taps and enjoy your go-to drinks and
snacks faster.

One must revisit the customization

page and then add items to the order
There is no option to order it again
Single Click Re-Order (Proposed) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Future State

The updated feature introduces a "Single Click Reorder"

functionality.
With a new "Order Now" button directly embedded in the
"Previous Orders" section, customers can reorder their
favorite items with just one tap.
This button takes them directly to the payment page,
bypassing intermediate steps and streamlining the entire
reordering process

Key Metrics

Reduced Time to Order

Increased Reorder Rate
Improved Customer Satisfaction
Lower Cart Abandonment Rate
Higher User Engagement

Single Click Re Order Button Directs to the payment page

Rewards (Current) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Description
The current Rewards feature requires users to scroll to find
star expiration dates
Lacks notifications, making it easy to miss expiring rewards

Pain Points
Hidden Expiry Info: Users must scroll down to see star
expirations.
No Notifications: No alerts about expiring stars, leading to
missed redemptions.
Poor Experience: Users might lose stars due to lack of
visibility and reminders.
Lower Engagement: Without notifications, users engage
less frequently.

Call to Action
Rewards and Notifications: To keep your rewards accessible,
we're updating the app to show your balance and expiration
dates directly on the rewards page, with notifications for
upcoming expirations.

Have to scroll all the way to

No clear indication about stars due date bottom to see the expiration date
Rewards (Proposed) Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

Future State

Adds a clear expiration section under Rewards and push

notifications for expiring stars

Key Metrics

Adoption Rate
Redemption Rate

Push Notification about

Easily accessible section to see expiration expiration added
Key Metrics Introduction About the
Product
User
Segmentation
Research
Insights
Personas Customer
Journey
Improvements Key
Metrics

North Star Metric (NSM)

captures the core value delivered by

M
the product.

NS
Number of Orders
Fulfilled
CS
RI

L1 Metrics directly contribute

ET

to the NSM or act as a checkpoints

M
1

Sign Up Activation Retention for direction

L
VE

Conversion Rate Rate

LE

Rate
CS
RI
ET

L2 Metrics are supporting

M

Bounce Abandonment Churn

2

Rate Rate Rate metrics that indicate NSM is moving

L
VE

in the right direction ( Inversely proportional to L1 )

LE
THANK
YOU!