Chasing the Customer … Starbucks’ South Korean Innovation



U.S. Markets Again Bypassed in Innovation Introduction

Once again U.S. consumers are bypassed in marketing innovation tests. Samsung is testing their new business phone in Russia. Starbucks is testing their new customer app in South Korea.

Schultz Now Heads Marketing Innovation Team

In an indication of just how important ‘Chasing the Customer’ is to Starbucks, Chief Executive Officer Howard Schultz handed over day-to-day operations last month to Troy Alstead, chief operating officer. Schultz plans to focus on “next-generation” retail, digital and mobile payments, the company’s loyalty program and electronic commerce.

Starbucks’ South Korean Innovation

Starbucks customers in South Korea are now the first in the world to place and pay for their orders using their mobile phone.

Starbucks Store  S. KoreaRian Boden of NFC infoworld reports that “… Two options are available. Members of My Starbucks Rewards or the Starbucks Coffee Korea website are being invited to use Siren Order, a service that lets customers provide the details of their order to a barista via a QR code, rather than having to communicate their order verbally.

Customers use the Siren Order option within the Starbucks app to choose how they wish their coffee to be made. When their selections are complete, the app generates a QR code that includes the details of both Starbucks-Coffee-Korea-launches-SIREN-ORDER_1.JPGtheir order and their loyalty card, Starbucks told NFC World+.

The barista then performs a single scan of the QR code shown on the phone’s screen to take the full details of the customer’s order and deduct the cost of their purchase from the balance on their Starbucks prepaid account.”

A video shows how the service works:

South Korean Smartphone Facts

  1. 73% Smartphone penetration
  2. 94% search for local information
  3. 94% research products
  4. 56% have made purchase with Smartphone

Global Digital Statistics 2014 We Are Social


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