Starbucks Rewards Program Drives Increase in Mobile Orders

Starbucks saw an increase in mobile orders as a percent of its total transactions over last the previous financial quarter, the company said in an earnings report last week.

The Seattle-based coffee giant saw 11 percent of all U.S. transactions take place over its popular smartphone app, in which customers can order and pay for their items using a credit or debit card, according to its 2018 Q1 report. Mobile order and pay usage increased slightly over Q4 2017, where 10 percent of all U.S. transactions were through the coffee store’s mobile app.

The earnings release also reported a significant increase in active Starbucks Rewards members, a key feature of its smartphone application and mobile order platform. Membership in the smartphone-driven rewards program grew 11 percent in the U.S. year-over-year to 14.2 million active users; rewards member spending represented 37 percent of U.S. store sales.

According to Mobile Marketer, Starbucks, which now supports mobile payments and orders through its app for customers who do not belong to its rewards program, plans to ramp up its mobile capabilities in March, Starbucks President and CEO Kevin Johnson said on the earnings call. And according to Mobile Marketer, Starbucks executive chairman Howard Schultz said the coffee franchise is interested in blockchain technology as part of its efforts to be a leading innovator in mobile payments.

The company recently opened a cashless store in downtown Seattle.