š Top Ways Starbucks Uses Data to Drive Impact
1. Deep Brew: AI for Personalized Recommendations & Efficiency
Starbucksā proprietary AI platform, Deep Brew, fuels personalization across the Rewards app, in-store experience, and operations. It analyzes order history, weather, location, seasonality, and even store-level data to predict customer preferences and make relevant recommendations.
This personalization delivers higher engagement, and the AI also helps optimize staff scheduling and inventory at each store.
2. Personalized Experiences at Scale
Over 75% of app users receive tailored drink and food suggestions from the app, based on their individual tastes and order patterns. In-store, a customerās profile can be surfaced to the barista before they arriveāfrom preferred drink to past ordersācreating a seamless, personalized experience.
3. Optimizing Workforce and Inventory
Through Deep Brew, Starbucks predicts staffing needs and inventory levels at each specific locationāreducing waste and ensuring the right workforce and products are available at the right time. Store partners spend less time counting inventory or managing schedules manually.
4. Smart Site Selection with Location Analytics
Using tools like Esriās Atlas, Starbucks analyzes factors such as traffic, income levels, proximity to competitors, and local ordering trends to determine where to open new stores. These predictions also help ensure new locations wonāt cannibalize existing store sales.
5. Supply Chain Visibility & Traceability
Starbucks leverages IoT and blockchain to connect the entire supply chaināfrom plant to cup. Customers can scan products to trace where beans are grown; the company monitors machines remotely, tracks ingredients in real-time, and pushes software updates instantly.
š Results by the Numbers
- 17M+ active Rewards users in the U.S., fueling app-driven personalization.
- App-driven orders account for 17ā30% of all transactions, boosting efficiency and loyalty.
- Estimated 30% increase in ROI and 15% boost in customer engagement thanks to AI-driven personalization.
ā What You Can Learn (Even If You’re Not Enterprise Scale)
- Use structured data from apps or loyalty tools to understand customer behavior.
- Implement AI or rule-based logic to tailor offers based on individual patterns.
- Optimize staffing and inventory using real-time data and predictive modeling.
- Leverage analytics to make smarter decisions about expansion and resource allocation.