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The Starbucks app is so popular it may be bruising their business

(BUSINESS NEWS) Many look up to the Starbucks brand as a trend setter, but they’re rethinking their mobile innovations as sales suffer – what now?

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The magic of virtual ordering

I never understood coffee memes until I started working retail and it became my lifeblood. When it’s too busy where I’m working for any of the employees to duck in the back to make coffee or wait in a line, we love the Starbucks app.

It’s great for Saturday mornings when there’s already a line outside of the door. Instead of completely panicking, my fellow employees and I turn to the magic of virtual ordering.

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I can’t be gone long enough to wait in line, but I can dart to the nearest Starbucks and back in record time.  It’s like I’m going for the gold in speed walking. I walk in, grab extra sugar packets and straws, shout thanks to the lovely baristas, and power back to home base. It feels like having a Disney FastPass — I get to zoom past the line and get my treats while everyone else is stuck in line.

Balancing customers’ needs

With the Starbucks app, you can customize things that you’d normally feel too needy to ask about in person. I can get two pumps of vanilla instead of the regular four without feeling like I’m annoying the baristas. However, the convenience of the app means people are zipping in and out of the store quickly, which isn’t good for business.

There have also been problems balancing the needs of in-store customers with those who ordered through the app.

Last quarter, baristas had trouble keeping up with the massive influx of orders from the mobile app. This caused backups, leading some walk-in customers to leave due to the extended wait time.

Additionally, the less time customers spend in the store, the less likely they are to make impulse purchases.

As one of the first adopters of a mobile payment system, Starbucks is pioneering the industry. Unfortunately, it doesn’t look like it’s entirely working out for them quite yet.

Sales took a dip, now what?

Last quarter sales were abysmal, partly due to a change in the company’s loyalty program.

With the previous system, customers received rewards for each transaction, leading some people to break up huge orders into individual transactions. Starbucks switched from a transaction-based system to a dollar-based one to root out those who were backing up lines with multiple transactions. Apparently people were pissed about their new star earning potential, contributing to a slump in national sales.

However, changes to the app may help increase customer satisfaction and keep people buying things in-store and via app. Too much demand is actually a pretty good problem to have. In fact, according to Reuters, AB Bernstein analyst Sara Senatore describes it as a “high-quality problem.”

Starbucks figured out how to get people into its stores and hand over their money. Now they just need to sort out the volume problem with the app.Click To Tweet

So far, several stores have added one or two baristas specifically focused on mobile orders and payments during peak hours. Starbucks’ spokesperson Linda Mills also noted that executives are considering testing out notifications alerting customers when their orders are ready. This would alleviate some of the back up at the in-store counters that are often filled with people who over or underestimated what “ready in 3-7 minutes” really means.

While I’m not always a fan of Starbucks’ business practices, I’m a huge fan of hybrid ordering. So I hope Starbucks works out their app issues so other companies can successfully follow their lead.

#SBUXapp

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Lindsay is an editor for The American Genius with a Communication Studies degree and English minor from Southwestern University. Lindsay is interested in social interactions across and through various media, particularly television, and will gladly hyper-analyze cartoons and comics with anyone, cats included.

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How to handle an acquisition like a boss

(BUSINESS NEWS) One way to grow your company is to be acquired. Here are some tips on how to not blow an acquisition.

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Acquisition

One way that a small business can become a big business is by being acquired. Maybe your business plan has always been to sell, or maybe it has never occurred to you.

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But if you find yourself being wooed by a potential suitor interested in buying your business, John Warrillow at Forbes.com has some advice to make sure you don’t blow it.

No harm, no foul

He says that, whether or not you are ready to sell your business, there is no harm in meeting with a potential buyer. Even if you don’t think you’d like to sell at the moment, the meeting could be useful for gaining “competitive intelligence” that could help you negotiate later.
For the most part there’s not much too lose and much to gain from meeting with a potential buyer, but Warrillow does warn against a few rookie mistakes.

First of all, he says, like a teen hoping for a second date, it’s important not to appear too “eager.”

Even if you’re desperate to hand over the business, play it cool, and insist that your company is not for sale, but that you are willing to meet for “a strategic discussion.”

Strategery

During said discussion, “let them do 95 percent of the talking.” Warrillow suggests writing out and rehearsing a list of questions so that you can control the conversation and get more information out of your suitor than they get out of you.

Part of holding your cards close to your chest includes refusing to name a price.

No matter how much they insist, hold true to your claim that the business is not for sale, and don’t give them even an estimate of the price range you’re looking for. Wait for them to name a number first, in a formal expression of interest.

Once you’ve received the expression of interest, hire an intermediary broker to help you with the deal. And whatever you do, don’t sign a Letter of Intent that prevents you from shopping around for other competitive offers.

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So you were asked an illegal question in an interview, now what?

(BUSINESS NEWS) Interviews are nerve racking enough without having to wonder if your potential employer is playing by the rules. Be aware of these tips in case you find they aren’t.

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Under pressure

Interviews are universally nerve-wracking. You’ve got the resume, the references, the outfit – but you never know what your interviewer(s) are going to throw at you.

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You expect questions relating to your skills and your ability to do the job, but sometimes a question comes out of left field and you’ve got to scramble for a coherent answer.

Interview questions

“If you were a pizza delivery man, how would you benefit from scissors,” asks Apple. And Gallup wants to know, “What was the last gift you gave someone?”

Well, when I ordered a pizza last night, I tipped the delivery person with scissors . . .

Unfortunately, some questions that seem just wacky, or harmless and friendly, are not just inappropriate to ask in an interview, but are actually illegal.

Illegal questions are generally those that request information irrelevant to the job description. Here are the most common categories of illegal questions, shared across all states:

  • Race
  • Color
  • Sex/Gender/Orientation
  • Military discharge
  • Religion
  • National origin
  • Birthplace
  • Age
  • Disability/Health status
  • Marital/family status

Watch out for tricks

Any of this personal information could be used, intentionally or not, to discriminate against them. A direct inquiry regarding any of these topics is obviously off-limits, but sometimes the question might come from a tricky angle.

“When did you graduate college?” = “How old are you?”

With this information, employers could decide you’re too young or old for the role, no matter how qualified you may be.

“Orizaga is an interesting surname – is it Spanish?” = “Are you Spanish?” A biased interviewer could use this information to determine that you are or aren’t a “good fit.” Similarly, “Is English your native language?” = “Are you from an English-speaking country or not?”

“Is that your maiden name?” = “Are you married?” And so on.

These questions are often asked innocently, by untrained interviewers looking to make conversation. Nonetheless, you don’t have to answer them, and your best bet is to tactfully avoid the question without demanding your constitutional rights in the middle of the interview.

Handle the heat

Tone is everything, but if you respond to an illegal question with something along the lines of, “Is that relevant to this role?” in a calm, mild voice, most interviewers will take the hint and move on.

If the situation allows for it, you can keep your answer nice and vague without avoiding the question.

For example, if you’re asked about your college graduation date, you could say, “It’s been a while, but I still view college as one of the best experiences of my life.”

Asking isn’t the most illegal part

It’s important to note that asking an illegal question is not equivalent to committing a crime. The information must be used in a discriminatory manner, as determined by a court.

If you believe that an act of discrimination has been committed, you should contact a labor attorney, or file a charge with your local Equal Employment Opportunity Commission (EEOC) office. Then order yourself a pizza and ask the delivery person about their scissors.

#Interview

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The 7 communication hurdles stifling your company’s efficiency

(BUSINESS NEWS) Whether communication is too little or too much, or delivered poorly, every company has room for improvement.

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One of the biggest sources of inefficiency in your company is going to be communication. It underlies almost every productive action within your business, whether it’s conveying instructions to a subordinate or disclosing your results to a client or investor; accordingly, even a small inefficiency in your lines of communication can result in a major loss of time/money.

Fortunately, knowing the key hurdles to effective communication—and learning to overcome them—can help you smooth out these problem areas and build a more efficient business.

How Communication Affects Your Efficiency

Ultimately, your business’s efficiency is impacted in three key ways:

  1. Message accuracy. If you convey the wrong information, or the right information in a confusing way, it can lead to errors and misunderstandings.
  2. Time consumption. Every message you send and receive is going to cost time from both the sender and recipient. If that time is excessive, it could result in waste.
  3. Cost. You also need to consider what you’re paying for your communication solutions, and whether each solution is worth it.

The Biggest Hurdles

These effects tend to manifest in response to these seven major hurdles:

1. Obsolete or unreliable tech. If you’re trying to save money by relying on old devices, or platforms that haven’t been upgraded in years, it could have a substantial negative impact on how you communicate. You might experience delays when making phone calls, missed messages in your chat logs, or a serious lack of mobility. Thankfully, making upgrades can make most of these problems go away. For example, investing in newer devices can dramatically improve your connection speeds and mobility, and switching VOIP providers can be a relatively easy transition to prevent delays and hiccups from interfering with your phone calls.

2. A lack of clear communication standards. How are your managers expected to relay instructions to subordinates? How are your subordinates expected to communicate progress to managers? How are your meeting recap emails supposed to be structured? If you aren’t sure of these answers, it’s a sign that you don’t have clear communication standards within your business. Formally documenting these expectations can keep communication clear and consistent for all your employees, in virtually all areas.

3. Inefficient modes of communication. If your employees aren’t using communication mediums correctly, it can also lead to problems. For example, if they frequently call meetings that could have been communicated in the span of a single email, it could waste hours of company time. If they use email instead of having a conversation over the phone, it could lead to confusion and unanswered questions. Each type of communication requires a different approach.

4. Departmental silos. Another major problem is departmental silos, which can make communication more difficult or nonexistent between two groups of people within the company. These silos tend to develop when different departments have different standards and expectations for communication, and when those departments rarely intermingle. You can correct this by integrating your departments more frequently, and getting everyone on the same standards for communication.

5. Unstructured meetings. Meetings are a major source of time waste in companies, since they involve many people at the same time, and often recur on a consistent basis. All your meetings should have a designated leader to keep the meeting on track, a specific intention or goal, and a time restriction to keep things tight and concise.

6. Poor listening. Listening is a vital skill for effective communication — and we aren’t doing enough of it. Too often in business environments, participants in a meeting or conversation are more focused on talking than listening, but listening is more effective for understanding and collaboration. To develop better listening skills, avoid distractions (like checking your smartphone during a conversation), allow time for the other person to speak, and use active listening tactics, like rephrasing what you’re hearing.

7. Overload. Too much communication can be a bad thing. If your employees are sending emails back and forth constantly, or if you’re paying for so many communication apps that you can’t keep track of them, it’s only going to result in confusion. In many ways, fewer, more concise messages are superior modes of communication than message bombardment—and you’ll pay less if you have fewer apps to worry about.

If you can overcome these seven significant communication hurdles, you can make your business far more efficient. While some of these changes may take a few weeks to settle in, others may grant you a positive change immediately — so inspect your company’s internal and external communication, and work hard to make things as streamlined as possible.

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