Friday, May 6, 2016

It's not Google you have to worry about, it's Starbucks.

" Starbucks will ultimately know as much about your day as Google and Facebook do. " 
ZDNet - Starbucks' digital transformation: The takeaways every enterprise needs to know
They are doing this by expanding their digital ecosystem by partnering with companies outside their industry to offer goods and services to Starbucks customers.
" In a statement, Howard Schultz, the chief executive of Starbucks, said, 'We see a future in which the Starbucks retail experience seamlessly extends to the mobile devices our millions of customers carry with them every day.' 
The New York Times - Some New York Times Articles to Appear Free on Starbucks App
My Starbucks Rewards members will soon be able to read Starbucks-recommended articles using the Starbucks app and can also earn stars, Starbucks' digital currency, for purchasing a subscription.

Starbucks' relationship with Spotify allows members to listen to the same music that plays in their stores through the Starbucks app. It also allows members to influence what music is played and earn stars for in-app purchases.

Members can earn stars by using Lyft. They will also be able to tip their drivers with Starbucks eGift Cards.

The latest building block in their empire, in partnership with Chase Bank, is a Starbucks prepaid debit card.
Despite some possible rewards points complexity, Starbucks stands to reap a specific benefit from its card deal with Chase: better cash flow.
The Motley Fool - Why Starbucks Wants You to Load Up Its Prepaid Visa Debit Car
Starbucks will have access to what you read, what you listen to, where you go, and now they will have access to your purchasing habits. Starbucks already offers a prepaid card - which generates $150 million annually in positive net cash flow - but it can only be used on Starbucks merchandise. A debit card will allow members to earn stars for third-party purchases and will give Starbucks a whole lot of data on members' purchasing habits.

It's interesting, on a theoretical level, how businesses are blurring industry boundaries but scary, too, because we have to trust that these businesses will safeguard our information. Starbucks plans to invest over $250 million in technology in 2016. Let's just hope they get some good IT people for that.

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