Starbucks’ pay-by-app have created extra convenience for consumers to purchase their coffee. Such app allows consumers to pay through their phones, check their balance and track rewards. Each account is identified based on consumers’ Starbucks Card account.

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Starbucks make use of information technology from the pay-by-app. Through the Starbucks card account that is linked to the app, the company is able to track all participating consumers’ transaction history. This allows the company to see their consumers’ buying habits, enabling them to better fulfill their customers’ needs. Through the accounts, Starbucks can track the repeats of purchase made by consumers on certain products, allowing them to analyze which products are more demanded. Hence, they are also able to track the responses to newly launched products too. These information acquired from the system allows Starbucks to develop further plans for improvements.

Starbucks also showed that it understands their segments’ needs very well. “Customers are looking for extra value….putting My Starbucks Reward on mobiles offers a faster, easier way to pay.” (par.5) Starbucks does not only provide personal assistance through baristas, but also an automated service to establish better customer relationships, as they know that customers wants less hassle in process of purchase (payments without cash).

VIDEO – Click this link to watch more about the app!

Article source: http://www.telegraph.co.uk/technology/mobile-phones/8992712/Starbucks-launches-pay-by-app-for-iPhone-users.html