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Starbucks' biggest IT problem is effectively handling a massive quantity of consumer data in order to

create personalised marketing efforts and improve customer experiences. In order to get insightful
knowledge into consumer preferences, behaviours, and trends, the organisation must gather, analyse,
and analyse data from numerous sources. This gives businesses the ability to modify marketing plans and
offer specialised incentives, eventually encouraging client loyalty and boosting sales. Starbucks has set
up many IT solutions to address this issue:

1. Data Gathering and Integration: Starbucks gathers information from a variety of interfaces, such as its
smartphone application, a website and purchases made in-store. To develop a centralised customer
database, they have combined their numerous data sources, giving them a complete picture of
consumer interactions and behaviours. This connection makes it possible to analyse customer
information comprehensively and guarantees consistency across channels.

2. Advanced Analytics: To extract useful information from the gathered data, Starbucks makes use of
advanced data analysis techniques. To find patterns, trends, and connections in the data, they use
techniques and technologies such as data mining and artificial intelligence (AI). Starbucks may construct
consumer groups and generate focused marketing efforts by researching things like customer
preferences, demographic data, and buying patterns.

3. Personalisation and recommendation systems: To improve the consumer experience, Starbucks uses
data-driven personalisation. They use recommendation engines that make use of consumer data to
provide appropriate product and marketing recommendations based on user preferences. For instance,
the Starbucks mobile app offers and recommends drinks depending on your preferences, the time of
day, and where you are.

4. Starbucks has an incredibly popular mobile-based loyalty programme called Starbucks Rewards.
Customers may trace their purchase history, earn and redeem points, and receive tailored offers using
the mobile app. As a result of this programme, Starbucks is better able to understand the interests and
behaviours of their consumers and efficiently customise incentives and promotions to everyone.

5. Social Media Engagement: Starbucks interacts with consumers on social media sites, treating them as
a source of feedback and insight. They listen in on social media chats to understand customer opinions,
spot new trends, and quickly resolve client issues. This interaction enables Starbucks to develop a
devoted client base and sustain a strong brand presence.

Starbucks successfully solves the issue of maintaining customer data and makes use of it to improve
customer experiences by using various IT solutions. A complete approach to using consumer data and
developing personalised marketing strategies is taken by the company using data collecting,
advanced analytics, loyalty programme, and social media involvement.

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