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Beta Testing for Pre-Order Capabilities for Starbucks Through Mobile

Starbucks has been a leading force in creative innovation, especially when it comes to technological experiments and advances. Their recent endeavor has been the Siren Order mobile application, which allows customers to order and pay for drinks online with the goal of decreasing wait times and increasing revenue and customer satisfaction. Such previous applications by other companies have been met with little success, but Starbucks seems to be paving the way for this particular way of mobile commerce. Here is a little about the beta testing for the Siren App, how it works, and what it means for Starbucks and other corporations in years to come.

How it Works:
1. Allows customers to make orders for all types of drinks, including specialty drinks (extra shots, add whip, etc.)
2. App notifies customer when order is approved.
3. App notifies customer that order is being prepared.
4. App notifies customer when order is ready to be served.

Risks/Problems:
1. Possibly lost orders due to customer or computer error.
2. Confusion on specialty orders along with cost.
3. Orders coming out at wrong time according to who ordered what, when.
4. Possible loss of future jobs at Starbucks, including cashiers because they are no longer necessary.
5. Customers cannot pay with cash.

Benefits:
1. Decreased wait times.
2. Increased revenue if proven to be successful.
3. Simpler customer experience.

Entrepreneur Marc Parrish, of Appboy in New York, stated that, “They (Starbucks) wouldn’t be pushing this so heavily if it was not operationally and financially a wild success. If they introduce pre-ordering to the mobile app, it could reduce the lines to near zero” (HotelMarketing.com). The app has been launched in South Korea as an experiment, and we have yet to see whether it will be effective as an overall mobile commerce tool. Given the risks and benefits involved in such an application, it will be interesting to see whether or not the beta testing of the Siren App proves to be a detriment or a bonus to the overall revenue and customer experience at Starbucks and other corporations who follow its lead.

 

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