Starbucks Expands Digital Tipping Option

You can do practically anything with a mobile phone these days including tipping your favorite barista. Could such apps be another path for rewards programs and tapping customer needs?

The Seattle coffee chain says the mobile tipping option, an app which it announced more than a year ago, will be available starting March 19, according to a report by AP writer Candace Choi. The rollout comes as the company’s app has surged in popularity, with roughly one out of every 10 purchases now made with a mobile device.

After paying with the app, Starbucks says customers will be able to leave a tip of 50 cents, $1 or $2 anytime within two hours of the transaction. The tipping option will only be available at the 7,000 of the roughly 11,000 Starbucks locations in the U.S. that are owned by the company.

The move puts a spotlight on what can be a sensitive topic for customers, workers and even Starbucks, which has faced lawsuits over how it divvies up the contents of tip jars among workers. Some customers are happy to tip for friendly service, knowing that baristas don’t earn that much. Others say that they already fork over enough money and shouldn’t be made to feel like they should throw money into a tip jar as well.

The question is can similar apps be created for taxis, hotel services, bars and restaurants and other places where transactions frequently call for cash payment? And what about customer information capture? Can such an app be another pathway to collect frequent user data and rewards programs?

Starbucks, meanwhile, has been pushing to get people to sign up for its mobile app and rewards program, which helps boost the number of times people are likely to visit its stores. The company says the addition of the mobile tipping option is a response to demand from customers, many of whom no longer carry around much cash.

“We asked our customers what they thought would be easiest and best,” Adam Brotman, chief digital officer for Starbucks, said in a phone interview. There are no plans to bring the mobile tipping option to stores licensed to other operators, however.

Read: https://www.foodmanufacturing.com/news/2014/03/starbucks-add-digital-tipping-option?et_cid=3820597&et_rid=626712242&type=cta

Read: https://mashable.com/2014/03/12/starbucks-app-tipping/

 


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.