Starbucks..Digital experience that is more than technology

As ever I have been on my brisk walk hoping to meet the daily step goal and rushing to my gate at ORD (Chicago O'Hare Airport).  The little voice inside me was screaming to grab that cup of Starbucks Chai before I get on the long flight home.  I saw this long tail and really didn't want to wait, so kept walking with the hope that I will get one more opportunity before I reach the gate.  To my surprise just 50 meters down there was another Starbucks but the lengthy line was nothing different.  I was about to console myself that I will get on the plane without my favorite drink, but before I fold to that decision I wanted to quickly check my luck.  I pulled out my Starbucks app on the phone and I couldn't believe what I found.  There were a total of 32 outlets in ORD alone which is 6 times more number of Starbucks than the entire township I live which spreads across 5 cities.  

I quickly glanced the list and realized that there are 4 Starbucks between where I stand and my gate, and if I place the order at the Starbucks that is close to my gate from my phone the ETA is 5 min which will be perfect timing to pick the drink before I board the plane. I quickly placed the order and royally marched into the plane with my fav drink.

Clearly this is the power of digital changing the experience for the users.  In this case, while Starbucks grew the revenue by $5 for the 16 oz. drink, but most important, secured even more loyalty from the customer.

Sipping the drink, I was gnawing on the incident, and my math brain began the calculation of revenue and profit.  ORD is the busiest airport with highest number of transit passengers in the country.  Suddenly the alarm went on!! Wait!! What I experienced is the tip of the iceberg, but as a geek unfairly I gave all the credit to technology for this experience.  

Though technology is crucial and significant enabler, an experience like this can’t be achieved without a solid operational infrastructure with strong business discipline. 

• I walked through 6 Starbucks and don’t remember seeing even one of them empty. This illustrates the meticulous supply-demand planning.  
• Starbucks has really mastered ‘Mass Personalization’, which made it easy for the customers to order their drinks with few clicks, but at the same time the procedure is so standard to the point every Barista can prepare the drink consistently. In my case I pick the Chai Latte from the menu, but always personalized it with soy milk, extra hot and no foam and saved it as my drink choice in the App so I can place the order with one click. Doesn’t matter where in the world I picked the drink, it is always the same and not even once someone asked me what I mean by extra hot or no foam.  My biggest surprise was in Turkey where the Barista can hardly speak English but perfectly understood my order.  
• Culture of ‘Customer Centric & Happy’. Doesn’t matter how crowded and how crazy it is; I have never experienced even once where the person who served me was grumpy.  They all had big smiles and there is happiness in the air always.  Most of the times I walk into Starbucks for the energy and the customer bias.

 By the time I finished the drink, I came to the conclusion that in the digital world what the customers experience is the tip of the iceberg.  Technology can be a game changer, but superior user experience requires a strong operational foundation and a culture of customer centricity as a key ingredient to the mix.