My bf keeps getting his Starbucks fix, even though he thinks the app is terrible — why?
My bf keeps getting his Starbucks fix, even though he thinks the app is terrible — why?
01 The Situation
02 UX Analysis
03 Improve "Quick Order"
04 Conclusion
My bf keeps getting his Starbucks fix, even though he thinks the app is terrible — why?
01 The Situation
02 UX Analysis
03 Improve "Quick Order"
04 Conclusion
The Situation
Starbucks has a high customer retention rate of 44%
Compared to industry average of 25%
I buy locally roasted beans and freshly grind it to make my coffee. On the contrary, my boyfriend prefers his Starbucks fix.
Offended at first…but come to realise people just have very unique preferences when it comes to coffee.
I wanted to figure out why…and besides, great opportunity to look into why Starbucks has such a loyal customer base.
The Situation
Starbucks has a high customer retention rate of 44%
Compared to industry average of 25%
I buy locally roasted beans and freshly grind it to make my coffee. On the contrary, my boyfriend prefers his Starbucks fix.
Offended at first…but come to realise people just have very unique preferences when it comes to coffee.
I wanted to figure out why…and besides, great opportunity to look into why Starbucks has such a loyal customer base.
UX Analysis
Building Customer Loyalty Right From The Start
As a new customer, you go through the usual Account Creation process, but on the last step, you either get a new Starbucks Card or add an existing one. You can buy items with a Starbucks Card.
Card Balance
HKD $10.0
Add money
Card Balance
HKD $10.0
Add money
User Psychology 01
Prepayment Bias
By asking a customer to invest early in the onboarding process and allowing them to personalise what their card looks like provides a sense of ownership and a psychological motivation for them to continue using the app and derive value from the prepaid amount (user retention). Overtime, this payment method becomes part of their routine.
Asking users to pay upfront requires a huge commitment. When done incorrectly it can deter potential customers and affect user acquisition. Why does it work for Starbucks? They're a well-established brand with a strong customer base and those who use the app are very likely to have been a previous customer.
User Psychology 02
Conceptual Model
From a business perspective we call this a “loyalty card” or “gift card”. However, if you examine the UI pattern of these screens, they are very similar to a prepaid metro card (think Octopus Card in Hong Kong, Opal in Australia or Oyster in London). This familiarity with the act of paying for your daily "morning brew" on the way to the office via the metro creates a fantastic combination for busy working professionals seeking efficiency and an energy boost.
UX Analysis
Building Customer Loyalty Right From The Start
As a new customer, you go through the usual Account Creation process, but on the last step, you either get a new Starbucks Card or add an existing one. You can buy items with a Starbucks Card.
Card Balance
HKD $10.0
Add money
User Psychology 01
Prepayment Bias
By asking a customer to invest early in the onboarding process and allowing them to personalise what their card looks like provides a sense of ownership and a psychological motivation for them to continue using the app and derive value from the prepaid amount (user retention). Overtime, this payment method becomes part of their routine.
Asking users to pay upfront requires a huge commitment. When done incorrectly it can deter potential customers and affect user acquisition. Why does it work for Starbucks? They're a well-established brand with a strong customer base and those who use the app are very likely to have been a previous customer.
User Psychology 02
Conceptual Model
From a business perspective we call this a “loyalty card” or “gift card”. However, if you examine the UI pattern of these screens, they are very similar to a prepaid metro card (think Octopus Card in Hong Kong, Opal in Australia or Oyster in London). This familiarity with the act of paying for your daily "morning brew" on the way to the office via the metro creates a fantastic combination for busy working professionals seeking efficiency and an energy boost.
Placing The Same Order Quickly
01
He gets the same items each time, but to my surprise, he doesn’t use the Quick Order function, because it "doesn't work".
He thinks the app is “XXXX” (aka terrible) but he keeps using it.
01
He gets the same items each time, but to my surprise, he doesn’t use the Quick Order function, because it "doesn't work".
He thinks the app is “XXXX” (aka terrible) but he keeps using it.
The user is tapping "Pay" button in frustration and it is not working. If they bother, they have to figure out it's because there is not enough money on their card. But, you can't top up on this page either…
The user is tapping "Pay" button in frustration and it is not working. If they bother, they have to figure out it's because there is not enough money on their card. But, you can't top up on this page either…
Placing The Same Order Quickly
01
He gets the same items each time, but to my surprise, he doesn’t use the Quick Order function, because it "doesn't work".
He thinks the app is “XXXX” (aka terrible) but he keeps using it.
The user is tapping "Pay" button in frustration and it is not working. If they bother, they have to figure out it's because there is not enough money on their card. But, you can't top up on this page either…
Placing The Same Order Quickly
Improve "Quick Order"
Fixing the Quick Order function
In the current design, users who do not have Auto Reload enabled will always encounter the issue with insufficient balance. They are also unable to use the Quick Order function and will have to exit the flow.
Let's fix this —the objective is to increase usage rate of “Quick Order” function, so all users can make more recurring purchases easily with one tap.
Before
No error message or corrective action on how to proceed to pay for Quick Order function.
Before
No error message or corrective action on how to proceed to pay for Quick Order function.
Before
No error message or corrective action on how to proceed to pay for Quick Order function.
Auto Reload does not work without adding a payment card first…and user figures out Add Payment Card is actually accessed some where else…
Auto Reload does not work without adding a payment card first…and user figures out Add Payment Card is actually accessed some where else…
Auto Reload does not work without adding a payment card first…and user figures out Add Payment Card is actually accessed some where else…
Conclusion
Okay, so let’s summarise why he sticks with his Starbucks coffee, and why Starbucks can maintain such loyal customer base.
The Obvious :
For busy work professionals who wants to consistently enjoy the same items and quality each time, having someone to make your creamy milk-frothed latte from a proper expresso machine quickly, without having to clean up is just much more efficient and satisfying.
Even though ordering in the app is not pleasant, he keeps using it because he can skip the queue and also “the barista recognises me every time and knows what my usual is”. Seamless offline and online experiences are just as important.
The Not So Obvious:
There are a few strategies used to make getting your Starbucks a frequent habit. These are based on commonly used product frameworks (HEART and AARRR).
Strategy
Strategy
Goal
Goal
Personalisation
Personalisation
Personalised Starbucks Card on account creation, greetings
Personalised Starbucks Card on account creation, greetings
Happiness
Happiness
Seamless ordering & payment
Seamless ordering & payment
Quick order function, saved items, skip the queue, Auto reload payment card, top-up with Apple/Google/Samsung pay, QR code payment at store
Quick order function, saved items, skip the queue, Auto reload payment card, top-up with Apple/Google/Samsung pay, QR code payment at store
Adoption, Engagement
Adoption, Engagement
Rewards program
Rewards program
Welcome offer, birthday treats, exclusive perks for different membership levels, collect reward stars
Welcome offer, birthday treats, exclusive perks for different membership levels, collect reward stars
Activation, Adoption, Engagement, Retention
Activation, Adoption, Engagement, Retention
Seasonal campaigns
Seasonal campaigns
Advertising speciality drinks on homepage to keep things fresh and updated
Advertising speciality drinks on homepage to keep things fresh and updated
Retention
Retention
Gifting
Gifting
Gift a Starbucks Card, send an item
Gift a Starbucks Card, send an item
Referral, Acquisition
Referral, Acquisition
Find out how you can integrate user psychology into your designs.
Find out how you can integrate user psychology into your designs.
Yanmi
Full-stack Digital Product Designer. With 5 years of UXUI Design and Product Management experience to deliver products that meet customer and business needs.