CUSTOMER

RELATIONSHIP
MANAGEMENT
Analytical CRM
of Starbucks
Presented by:
6439030 Narakorn Luangin
 Starbucks Company Overview

Data Analytics

AGENDA
Benefits to company and customer

Conclusion
 STARBUCKS COMPANY OVERVIEW

Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegl, and

Gordon Bowker. At first, the coffee company only sold coffee
beans and didn’t offer the premium coffee drinks it’s known for
now.

The famous logo, inspired by Norse woodcutting that contained a

siren, the mermaid-like figure has been with the company since its
inception (although it has undergone a few redesigns).
In 1986, the original owners sold Starbucks to former manager
Howard Schultz, who took the brand and helped build it into the
coffee behemoth it is today.
DATA MINING
FUNCTION
STARBUCKS
 DATA MINING FUNCTION
Step 1- Data to Insights
The Starbucks loyalty program has
created personalization for its customers
by using their data and offering tailored
privileges and offers.
Step 2- Insights to Location
The tool enables Starbucks to evaluate
massive amounts of data including variables
such as population, income levels, traffic,
competitor presence, and proximity to other
Starbucks locations before recommending a
new store location.
Step 3- New product introduction
Starbucks also turned to the data collected to
determine what products they should offer.
Specifically, when expanding its product lines into
grocery stores, the company relies heavily on the
data collected.
CLASSIFICATION

Starbucks leverages the Digital flywheel program, a

cloud-based artificial intelligence engine that’s able
to recommend food and drink items in a precise
manner. As such, even when people visit a new
Starbucks location, the store’s point-of-sale system
can identify the customer through their phone and
give the barista their preferred order.
CLUSTERING

Starbucks carefully analyses data on parameters

such as-
Consumer demographics
Population density
Average income levels
Traffic patterns
Public transport hubs
Types of businesses in the location under
consideration.
So it connects this data and builds models based on
pedestrian traffic and average customer spend of the
location.
 Better Customer Relationship Management
It helps businesses know what type of customers to
approach with different kinds of products. This guarantees

BENEFITS TO the sale of the product and not the pitching of the product.

COMPANY Helps Stay Ahead of Competition

Data mining offers many advantages over the possibilities of
personalization, consistency with the current and future needs of
consumers.

Attract and Retain Customers

Data mining enables quick and efficient analysis of the main
attributes of consumers.
 Variety of products and menu options
There is a menu of drinks, food, snacks and various products
to choose from. It is a product and product that is very high
quality.

BENEFITS TO
CUSTOMER Convenient and complete service
Create convenience for people who come to use the service
and buy products. because there are many branches across
the country.
 CONCLUSION
While Starbucks was not born in the digital era, it has successfully
integrated new technologies into its core business like a digitally native
company.

Over the years, data analytics has undeniably become the backbone of
Starbucks’s continuous improvement. Looking ahead, I have no doubt that
Starbucks will continue to gather more data and make even more
innovative use of those data to create an even more personalized customer
experience and achieve business excellence.

Avery Design Studio

 REFERENCE
M. Berry and G. Linoff, Data mining techniques. Hoboken, N.J.: Wiley, 2011.

“Using big data to improve customer experience and business performance – Nokia Bell Labs Journals & Magazine”,
Ieeexplore.ieee.org, 2017. [Online]. Available: http://ieeexplore.ieee.org/document/6770344/.

R. Li, R. Li, D. Tan and S. Joshi, “History of data mining | Hacker Bits”, Hackerbits.com, 2017. [Online]. Available:
https://hackerbits.com/data/history-of-data-mining/.

“Using Data Mining to Improve the Customer Experience in Your Call Center” 2016. [Online]. Available:
http://blog.playvox.com/using-data-mining-to-improve-the-customer-experience-in-your-call-center.

Max Pakapol. (2021, March 23). The Perfect Blend: Starbucks and Data Analytics. https://d3.harvard.edu/platform-
digit/submission/the-perfect-blend-starbucks-and-data-analytics/

Ritesh Pathak. (2020, November 17). 6 ways in which Starbucks uses big data. https://www.analyticssteps.com/blogs/6-ways-
which-starbucks-uses-big-data
 Starbucks

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