The success of Starbucks cafes has been good for coffee distributors across the United States. Why? Because Starbucks has given coffee a new cachet. All coffee. Not just the product sold by Starbucks, but the 80% sold in supermarkets – and everything else.

Starbucks is one of the largest and best-known companies in the world, with more than 27,000 stores and a turnover of 22 billion last year. Data is critical to Starbucks, where a head of Global Strategy, Insights and Analytics sits on the executive leadership team. According to Starbucks, this feature uses “methodologies ranging from ethnography to big data analytics… that support Starbucks' pricing strategy, real estate development planning, product development, trade promotion optimization and marketing strategy.”

Not only does Starbucks use mountains of coffee beans to satisfy its raving fans, but they also have mountains of data that they use in many ways to improve the customer experience and their business. With 90 million transactions per week in 25,000 stores worldwide, the coffee giant is in many ways leading the way in using big data and artificial intelligence to support direct marketing, sales and business decisions.

When Starbucks launched its rewards program and mobile app, they dramatically increased the amount of data they collected that they could use to learn about their customers and gain information about purchasing behavior. The mobile app has over 17 million and the rewards program has 13 million active users. These users alone create an overwhelming amount of data about what, where and when they buy coffee and complementary products, which can be added to other data including weather, holidays and special offers. Let's look at some of the ways Starbucks uses the data it collects.

0:00 Transforming Starbucks using data analytics
0:20 Starbucks and data analytics
1:17 Starbucks' organizational change
2:13 Store location analysis
3:31 New product management
4:33 Digital transformation
5:50 Create dynamic menus
7:05 Analysis of machine maintenance
9:09 Conclusion

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