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According to the journal article called Brewing with a dash of data and analytics (2020), the Starbucks app is a convenient way to order and pick up in advance or scan and pay in-store. Rewards are built-in. You can earn stars with every purchase. Customize and place an order to pick up from nearby stores without queuing. (Brewing with a dash of data and analytics – Starbucks, 2020). My Starbucks Reward is a cumulative plan points for every drink ordered and provides level upgrades to the membership, price discounts, or coupon benefits. The user also can register its purchases or gift cards to "My Starbucks Reward" and use them in the app. Starbucks Digital Flywheel is a platform that uses data such as product, inventory, location, price, time, sales volume to provide a personalized experience to the customers. Starbucks has increased its sales by applying digital technology. Deep Brew AI platform and mobile apps are making efforts to expand points with customers and providing a better consumer experience. Silent Order is also available that allows customers to order a product from the menu, pay using a mobile or Starbucks card. After approval, it can be followed the manufacturing process. An alarm message will be sent to confirm, and the order will be sent to the nearest store based on the customer's GPS location avoiding waiting time. (Lee, 2020).
Members of the Rewards and App give Starbucks permission to collect a lot of information about their buying preferences, including drinks and their regular orders. As a result, even when customers visit a different Starbucks in another city or not, the store's point-of-sale device will recognize them and send their desired order to the barista using their smartphone. Sometimes AI will send some local suggestions or best sellers to the customers. The Digital Flywheel program, a cloud-based artificial intelligence engine that can recommend food and drink items to the costumes who didn't even realize they needed to try something different. It's so sophisticated that the suggestions can be adjusted depending on what makes the most sense considering the weather, weekday or weekend, and where you are at. (Marr, 2018).
The Digital Flywheel program generates a lot of demand and assists the company in capturing it. In early 2020, there were over 19 million members with loyalty programs. Starbucks can have a "radically customized" and warm service by knowing individual customer order tastes and purchasing habits. Customers will be presented with insightful, customized options based on their preferences and conditions, and time of day, using AI in the Starbucks app or on the drive-thru menu. With the rise in popularity of mobile ordering and delivery systems, Starbucks is exploring how artificial intelligence (AI) can assist baristas in creating drinks in a way that considers the big picture. For example, if a store receives a digital order for four iced lattes but the customer is still 10 miles away, baristas can prioritize other beverages.
Furthermore, Starbucks used data derived from consumer purchasing preferences through a broad customer base and several outlets (supermarket data). This provided the company with a solid foundation for determining which brands to aim for the home drinker and adjust menu items to delight consumers quickly. However, this can overcomplicate things and make scaling difficult. (Brewing with a dash of data and analytics – Starbucks, 2020).

[1]Brewing with a dash of data and analytics – Starbucks (2020) Hbs.edu. Available at: https://digital.hbs.edu/platform-digit/submission/brewing-with-a-dash-of-data-and-analytics-starbucks/ (Accessed: April 21, 2021).

[2]Lee, S.-Y. (2020) “Study on Digital Transformation Strategies: Starbucks Case Study,” Journal of Digital Contents Society, 21(10), p. 8. DOI: 10.14400/JDC.2020.18.7.177.

[3]Marr, B. (2018) “Starbucks: Using big data, analytics, and artificial intelligence to boost performance,” Forbes Magazine, 28 May. Available at: https://www.forbes.com/sites/bernardmarr/2018/05/28/starbucks-using-big-data-analytics-and-artificial-intelligence-to-boost-performance/ (Accessed: April 22, 2021).

[4]Image from https://twitter.com/starbucks/status/1125396798808391680