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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.

bar
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

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.

Business News

Calvin Klein skips stores, opts for Amazon – smart or suicide?

(BUSINESS NEWS) Calvin Klein takes a creative step that may increasingly become common, but is it still risky at this stage?

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Calvin Klein has announced that it is taking a new approach this holiday season – instead of giving department stores access to its new stuff – online giant Amazon gets all that awesome underwear and denim first (here). Department stores won’t have access to their line until after Christmas sales have ended.

Wait, what?

It’s not a bad idea though. Basically, CK is following the money trail and with more and more consumers going to Amazon as the online shop of choice, compared to the thousands of stores closing across the country for the retail sector, it makes sense.

CK’s new approach is innovative- in addition to going online, it’s got two in-person pop-ups to create a new shopping experience that integrates Amazon Alexa devices and a highly personalized shopping experience. For example, you could literally see how those jeans pop in the club by having some delicious dance track play on Alexa and some clever lighting – dude! The pop up stores won’t even have prices, they just use the Amazon app to show relevant, changing prices (thanks to robots with algorithms).

How this new approach and unique shopping experience goes for this brand is going to set a new tone possibly – if it’s successful.

Amazon is set to benefit in its broader exposure and exclusivity (as though you needed a reason to shop at Amazon – I sure don’t!) of the relationship, but more importantly, as Amazon moves into fashion with things like “Prime Wardrobe” and seven new private-label clothes brand it’s set to become a great place for clothing. Earlier this year, Nike began selling on Amazon as well, so while CK isn’t the first to jump on it, it’s certainly doing it in a unique way.

Sadly, the pop-ups are only in the bougie locales of New York and Los Angeles, but everyone else should check out the customer site for all those good denim jackets, I mean, jeans. In terms of marketing, Model Karlie Kloss and YouTuber Lilly Singh are influencing the campaign, creating a one of a kind mix of fashion, technology, and engagement.

The great CK experiment is proving to be a fascinating show – and has some big implications for future retail.

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Business News

Working through job interview adrenaline and anxiety

(CAREER NEWS) Find out how to use the pressure and adrenaline of a face-to-face job interview to your advantage.

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It’s undeniable that there is a certain amount of adrenaline that flows through you during a face-to-face job interview. You’re theoretically vying for a job you really want (or need), so you have to make sure that you put in your best effort.

Even under the best of circumstances, this can make you feel like you’re in an interrogation room being asked what you were doing the night of December 2nd, 1997. This is where that adrenaline can come into play, which can make things harder – just make sure you’re properly utilizing it.

First off, use that adrenaline to get you to the interview location with plenty of time to spare. No employer values tardiness, and it’s good to walk into a high-pressure situation with all of your ducks in a row.

Being early also gives you a chance to get a feel for the environment and gives you a chance to make an impression with the receptionist. Speaking as a former receptionist, this is not something you should overlook as our opinions are often asked by the employer.

Once you’re in the interview setting, use the adrenaline to keep you engaged in the conversation. An important aspect of this is making eye contact.

Don’t confuse this with being creepy and staring without blinking. Just be sure to look into the eye of the person you’re speaking to, and be sure to share that eye contact with others if you’re speaking to a panel of interviewers, keeping a happy, interested (but not scared or overly enthusiastic) look on your face.

With rushing adrenaline, you may use self-soothing movements like playing with your hair or wringing your hands. You may exhibit anxious movements like toe tapping. Don’t do any of these things – they’re within your control. But if something like a shaky voice from these nerves are not within your control, apologize up front (“Apologies for my shaky voice, I have normal interview jitters, I usually speak like a normal human person”) and move on.

Depending on how the interviewer leads the conversation, the entire interview doesn’t have to be this stiff discussion. If given the opportunity, use this time to work in some small talk so they can see the personable side of your personality. For example, you can keep it related to the situation by making small talk about the traffic and asking how the interviewer typically gets to work each day (buying time is another great way to work through the anxiety of rushing adrenaline).

Throughout the course of the conversation, whether the small talk or the interview itself, make sure you’re showing your true colors and not lying. It isn’t hard (especially these days) to be caught in a lie, so don’t waste anyone’s time with the nonsense.

Once everything is said and done, say your thank yous and your goodbyes and make your way to the exit. Don’t try and overstay your welcome or linger in the lobby, just be on your way. But, don’t forget to send a courteous “thank you” email.

Above all, remember that everyone is nervous in a job interview situation – you’re not alone!

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Business News

If Amazon puts HQ in Chicago, they’ll get a cut of their workers’ income taxes

(BUSINESS NEWS) Amazon continues the hunt for a new city to set up shop, and cities across the nation are offering plenty to attract the brand.

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If Amazon sets up a new headquarters in Chicago, the company could get over two billion dollars in tax breaks, including $1.32 billion from their workers’ income taxes. How would they achieve this fiendish feat?

With the magic of personal income tax diversion, where employers withhold state income taxes from employee paychecks. Workers still pay full income taxes, but the company holds onto all or part of the funds.

This happens when a city says to a business, “please come live here, we want your money so much you can just not pay taxes okay?” In this case, both Chicago and the state authorities of Illinois presented this offering to Amazon.

In September, Amazon announced plans for a second headquarters, which was very originally dubbed Amazon HQ2. The new headquarters is intended to supplement the existing one in Seattle. Amazon intends to spend around five billion on new construction alone, and said it plans on having 50,000 workers at HQ2.

Amazon outlined core requirements for HQ2, including access to mass transit, metropolitan population of over one million, and up to eight million square feet of office space just in case they need to expand even more. Proximity to major universities and airports with direct flights to New York, San Francisco, Seattle, and Washington D.C. were part of the optional rider.

At least 238 other bids have been made for the headquarters. Chris Christie proposed paying Amazon up to $10,000 for every job created even though New Jersey has $60 billion in unfunded pension obligations.

Plenty of other cities want to take Amazon to prom too, and have launched promotional campaigns to stand out from the crowd. One Arizona economic development firm sent a 21-foot cactus, which was rejected due to Amazon’s corporate gift policy. Don’t worry about the cactus’ feelings though, it was donated to the Arizona-Sonora Desert Museum.

In another proposal, Kansas City, Missouri mayor Sly James purchased one thousand Amazon products, donated them to charity, then wrote five star reviews for every item, which all included shout outs to Kansas City’s positive attributes. James either has way too much time on his hands, or employs very productive interns.

This lovely display of cities offering incredible legal loopholes for Amazon is pretty heartwarming. After all, the company is definitely in need of financial help and government perks. Except that oh wait, founder Jeff Bezos is currently the only person in the world worth over $100 billion dollars.

Amazon’s soaring share price added around $43 billion to founder Jeff Bezos’ personal fortune this year, and Black Friday alone raked in $2.4 billion. There’s also all that fun stuff about subpar
workers’ conditions in Amazon’s warehouses that we all pretend to forget when there’s free two-day shipping on that thing you really, really want.

So far, Amazon has yet to accept Chicago’s tax-tastic bid, or any other offer. Based on the list of requirements, Moody’s Analytics released a data-specific analysis of the top cities.

Austin, Texas topped the list, followed by Atlanta, Philadelphia, and Rochester, New York. Other contenders include Pittsburgh, Portland, and New York City.

Amazon will announce the final site selection and plan sometime in 2018.

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