For some morning zombies, they can’t wait to get their hands on a cup of coffee. Well, now they won’t have to wait a long time if they’re a Starbucks customer because the coffee giant is launching a program to allow customers to place their orders ahead of time on their smartphones.
Starbucks (NASDAQ:SBUX) will roll out the “Pay Ahead” program later this year in Portland and then introduce it nationwide next year. This is part of the Seattle, Washington-based chain’s initiative to improve the speed of its customer service, which some patrons say has been lagging as of late.
The “Pay Ahead” feature is also meant to win customers who may be discouraged and frustrated by the lines and extensive wait times, especially throughout the morning rush, the company said in its announcement.
On top of this latest function, Starbucks is encouraging its customers to download its smartphone payment app, too, to pay for their products, including tipping baristas. Furthermore, the app could very well assist in the company’s plight to enhance customer loyalty – customers can earn reward points for each purchase that can then be cashed in for free beverages and food. Starbucks confirmed 15 percent of its purchases are already made with mobile devices.
Both features are part of the java juggernaut’s plan to tap into the millennial population, a demographic that is tech-savvy and quite the aficionados when it comes to Starbucks lattes.
Indeed, there is a strong demand for mobile payments. CNN reports that mobile payments will hit $3.5 billion this year and it is projected to skyrocket to $118 billion annually within the next four years.
Other fast-food chains, such as McDonald’s and Taco Bell, have been working on their own mobile payment apps, while Dunkin’ Donuts launched its own version in 2012 and has been urging its customers to download it.
The world of coffee has certainly evolved from the days of sitting in a drug store sipping on a cup.
