A Good Example of Customer Retention

In this clip from Resilience: An eLearning Series For Ecommerce Brands In 2021, Allison explores why Starbucks is so good at getting customers to come back over and over again. Not surprisingly, customer data plays a huge role in the customer retention success that Starbucks benefits from today.

What does Starbucks do so well?

Starbucks does an excellent job of increasing the number of transactions that customers have with their brand. One of the ways they do so is through their loyalty program, Starbucks® Rewards. They built their program on the foundation of their knowledge of their customer. The baristas knew the regular customers, the orders that they typically bought, and maybe even how often they came in.But none of that was digitized. 

Developing a mobile app

The Starbucks mobile app is a good example of customer retention. The decision to make a mobile app was a great way to increase customer retention for Starbucks. Whereas before, all the information about the customer was locked away in the minds of baristas working at the store, the digitization of this information allowed Starbucks to get to know their customers even better and extend personalized offers to them.

The bottom line: Why Starbucks is a good example of customer retention.

To date, the Starbucks Reward Loyalty program can be attributed to 40% of total sales for the company. Their former CFO, Patrick Grismer, has said, "We know from our experience that when customers join our rewards program, their total spend with Starbucks increases meaningfully." It helps to have an addicting product, but there's no denying that the steps Starbucks has taken to increase customer retention have been impactful.

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How to Increase Customer Retention

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What is Customer Acquisition Cost?