Starbucks CEO Howard Schultz plans to spend more time in developing the coffee chain’s reward programs, mobile payments, and digital efforts of growing importance.
The New Plan
Shultz announced his plan after Starbucks noted a “seismic” shift last week to online shopping in the past holiday season. Executives said fewer customers milling about at malls meant fewer opportunities for them to visit the coffee shop.
The CEO, however, didn’t think that the rise of online shopping will hurt the company. He said that the company is using digital assets to strengthen the relationship with customers and get them to visit more often.
Growing the Company
Shultz said in a call that he thinks there are enormous opportunities to take advantage of. He said the company could increase its rewards program and let customers win drinks or food by earning a “star” for their purchase. The company recently expanded this program to help customer earn stars for the bagged Starbucks coffee in supermarkets.