Starbucks – How to Maximize Work Using Big Data

Amazing technology of the digital age we live in offers a huge amount of possibilities for the companies who want to attract new customers. Nowadays, more and more firms invest in tools to monitor and analyse data, such as the behaviour of their clients, to ensure the best quality of service and, therefore, increase their revenue. Considering the case of Starbucks, we can see that investing in big data can really pay off.

The Empire

Since it was established in 1971, Starbucks has been constantly implementing new technologies to stay on top of the market. Today, it is a multimillion dollar industry with over 24 thousand locations worldwide. Its success can be largely attributed to a continuous use of big data and data analysis. Starbucks serves over 4 billion people a year and has more than 12 million regular customers, therefore the amount of processed data is huge. The company uses data in a variety of ways – for instance, to choose the best location for new chains, to create new beverages and introduce changes to menus as well as to prepare special offers. It also strives to have a personal approach to every customer based on his or her previous choices, and hence to increase the quality of service as well as maximize the productivity.

The Technology Behind It

One of the most important tools that Starbucks uses for data analysis is Atlas – a mapping platform created by Esri. It gives the access to a number of information, for instance regarding weather conditions, that helps to choose which beverages, hot or cold, to promote. The platform also offers the information about the traffic, population density and even the average income of people who work and live in the given area. The amount of data combined with company’s experience allows to estimate return of investment before a new chain is opened. Although the level of technology used by the company is already very high, Starbucks has high hopes for the future. It plans to implement new solutions, to keep working on minimizing, so called “paper work” (the reports etc.) and to process data even faster.

Growing Market

What does it mean for IT companies? First or all, a big market for applications that manage and analyse big data. In Genuitek Software we have considerable experience of working with big data and we are constantly working on new solutions that will meet market demands. We support local projects (i.a.TUM Wroclaw) as well as develop tools for financial institutions (for data processing, creating reports etc.).  Moreover, we are very interested in the variety of ways geolocation can be used in marketing. In fact, one of the applications we created allows sending messages to a group of people that is currently in a given area. Suffices to say, that we are quite enthusiastic about the upcoming trends in the customer service.

Klaudia Skrzydło

Content Writer

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