Digital assets are sweeping the globe. If you turn on the financial news or leaf through the business section of a newspaper, you’re almost certain to come across an article about cryptocurrencies. The potential to disrupt a variety of industries is undoubtedly what proponents hope for.
However, even Starbucks (NASDAQ:SBUX), a 50-year-old physical-world business, is incorporating disruptive technology into its own operations. And it has the potential to alter the way consumers interact with their favourite brands.
Here’s an example of how forward-thinking this coffee shop behemoth truly is. It may just convince you to purchase the stock. Starbucks ended the most recent quarter with 24.8 million Rewards members in the United States alone, a 28 percent increase over the prior-year period. The company is widely believed to have one of the most robust loyalty programmes available. The programme, which began in 2009, encourages repeat purchases, which any business would want. And, as a result of its longevity, Starbucks’ collection of data on consumer purchasing behaviour is a competitive advantage in and of itself.
Coffee enthusiasts who use their Starbucks mobile app to pay for beverages or food earn two points (or Stars) per dollar spent, while those who pay with cash or a credit or debit card earn one point. Along with the ability to place orders ahead of time, Starbucks offers complimentary birthday treats and frequently hosts bonus challenges to help you rack up points faster. This works extremely well because coffee is one of those uncommon items that can be purchased on a daily basis.
Starbucks has expanded its payment options by allowing customers to pay directly with Bitcoin through a partnership with digital wallet provider Bakkt. Additionally, customers can already convert their cryptocurrency balances to fiat currency via PayPal prior to reloading their Starbucks apps.