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September 23, 2009 5:00 AM PDT

Future of mobile commerce, in a skinny vanilla latte?

by Caroline McCarthy
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Your decaf caramel macchiatos and no-whip pumpkin spice lattes are going mobile.

In a double-shot launch (sorry), coffee giant Starbucks unveiled late Tuesday its first two iPhone apps. The first one, called MyStarbucks, is a no-brainer: you can use the phone's GPS capability to find nearby stores (previously, this was available via text message), search ingredient and calorie information for Starbucks beverages, study coffee bean varieties, and build virtual drinks to see what exactly would be in one if you ordered it.

But it's the second app, called Starbucks Card Mobile, that could be worth a double-take. The app allows for balance check and refilling of Starbucks gift cards, which the company has expanded into a customer loyalty program by offering discounts, free refills, and two hours of free Wi-Fi to cardholders. And in two experimental test markets, the Starbucks Card Mobile application can use a barcode to replace the plastic gift card altogether.

As far as mobile e-commerce is concerned, this could be a big deal.

Mobile retail promotions, from text-message codes to redeem for free drinks to the nascent pop-up deals in geolocation app Foursquare, are nothing new. And mobile payments are commonplace in countries like Japan and South Korea. In the U.S., they haven't caught on yet. But having a ubiquitous national retailer like Starbucks in the game could change this.

The barcode-based electronic gift card from the new Starbucks iPhone app.

(Credit: Starbucks)

"We're really venturing into new waters in terms of mobile payment," Stephen Gillett, senior vice president of digital ventures at Starbucks, said regarding the Starbucks Card Mobile app.

"The mobile app is really the powering of some of our most frequently used functions on (the Starbucks card's Web site) and our in-store activity in terms of balance and payment and favorite orders," Gillett said. The app was developed internally with some help from third-party companies like mobile billing start-up mFoundry, he said.

Unless you're geographically very lucky, you won't be able to pay for a venti frappuccino with your iPhone just yet. Only 16 Starbucks outlets, eight in its home turf of Seattle and eight in Silicon Valley, can currently handle the barcode-based gift cards. These are stores already internally designated as test spots for new Starbucks technology, Gillett said.

"In some of these Seattle stores we've tested store manager laptops, allowing them to get instant messaging, full access to e-mail, and conferencing," he said. "These are some of the stores that got the new AT&T Wi-Fi earlier."

As a result, that means the integration process may be smoother for the test stores than it would be for a random Starbucks elsewhere in the country. "The store employees are used to getting new kinds of technology, new kinds of services earlier than most markets," Gillett said.

Estimates vary on just how big the U.S. gift card industry is, but according to the Federal Reserve, it's certainly well into the billions and continues to grow. As for Starbucks, already one in seven transactions at the coffee chain involves its array of gift and loyalty cards, Gillett says. "We see a significant amount of our traffic represented by loyalty cards of some sort," he said.

And eliminating that need for a physical gift card is a pretty obvious next step, especially if you've ever spent any time fishing around for one in a handbag.

The question is whether a new concept like barcode-based gift cards can easily scale to a chain as widespread as Starbucks. Mobile barcode systems have typically been rolled out in far smaller contexts--short-term advertising campaigns, for example, or companies with far smaller reach such as Equinox, a high-end gym in a handful of U.S. cities that recently began letting members check in with an iPhone-based barcode. And while Starbucks has been battered by the recession and has closed several hundred stores in the U.S., it still operates or licenses over 10,000 outlets in the U.S. and thousands more overseas.

So Starbucks is taking a slow approach to mobile payment testing, which means that customers outside of Silicon Valley and Seattle might not be seeing it any time soon.

"We're really working on getting that (customer) feedback before we put any long-term plans in future markets," Gillett said. "This really is a consumer-driven app in so many ways. This is an app that we need the customer experience to have a very strong influence on."

He was equally mum om whether Starbucks Card Mobile will offer advance mobile ordering options or other potential features. "Again, we're really looking to this app hitting the real world before we lock in future functionalities," Gillett said.

The same goes for taking the app beyond Apple's handset. Apple and Starbucks have a years-long and complicated history encompassing both iTunes and AT&T wireless service, but a mobile payment option ideally wouldn't be restricted to the iPhone.

"We are definitely interested in non-iPhone based platforms, particularly Windows and Android and BlackBerry," Gillett said. "But at this point we're just really focused on the launch for this."

Originally posted at The Social
August 15, 2009 6:00 AM PDT

Starbucks: Stay as long as you want

by Rafe Needleman
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Last week, The Wall Street Journal reported that some New York coffee shops were pulling the plug on customers that park themselves at tables, open their laptops, and hang out for hours, buying perhaps only a single latte as their cafe rental fee.

While independent coffee shops that are struggling to make ends meet may see the need to flush out the low-revenue laptop users, the major chains are not so strapped. Starbucks founder Howard Schultz, in fact, was a big proponent of building a comfortable third place for people to work and socialize. (The first two places being home and the traditional office.) It's part of the company's mission.

Starbucks' official response to this movement: "We strive to create a welcoming environment for all of our customers. We do not have any time limits for being in our stores, and continue to focus on making the Third Place experience for every Starbucks customer."

Starbucks' Wi-Fi is even free--although not infinitely. Customers (with Starbucks cash cards) get two hours for nothing, after which they have to pay. But if you have free access to Starbucks' AT&T Wi-Fi via another avenue, such as your DSL account, they won't eject you.

Ironically, it strikes me that the move by independent coffee shops to evict third place workers may just drive those people over to Starbucks and the other chains. Sure, all businesses need paying customers and not just window dressing, but my guess is that after turning away those people who have become freelancers and consultants by circumstance and not by choice, they won't come back when their fortunes recover.

Related: Should Starbucks ban laptops?

Originally posted at Rafe's Radar
July 21, 2009 5:31 PM PDT

Branded social networks offer more than ads

by Don Reisinger
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At their core, branded social networks are a marketing ploy by firms to keep you interested in their products. So, be aware that if you join one you will need to deal with some annoying advertisements. But if you want to join another community of people with similar interests, start with some of these services.

Branded social networks

Disney Disney's social-networking efforts provide a unique experience by appealing more to children than adults.

After you sign up for the social network, you'll be given the opportunity to create your own "page." There, you can add videos, audio, games, widgets, and a variety of other elements to make your page your own. Think of it as a custom home page. As you might expect, most of the elements you can add to your page are Disney-branded. So, you can have a "101 Dalmatians" background or play a "Pirates of the Caribbean" game. Once complete, you can check out other users' pages, chat with friends, or join groups. It's a powerful service and it's well-designed.

Disney

Disney lets you do a lot with your page.

(Credit: Screenshot by Don Reisinger/CNET)

eBay Neighborhoods eBay Neighborhoods is a collection of groups of eBay users who communicate, review products, upload content, or just discuss the topics of their choice.

After signing up for eBay, you can easily join one of the company's neighborhoods. Those neighborhoods range in size from a few members to thousands of members that center on topics ranging from coffee to sports. The members in each group engage in discussions on those subjects. They can also review products and post blog entries. Some of the bigger neighborhoods have a lot of activity, while others have little activity. Either way, eBay Neighborhoods isn't a bad place to communicate with people who share your interests.

eBay Neighborhoods

eBay Neighborhoods have some groups worth joining.

(Credit: Screenshot by Don Reisinger/CNET)
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March 11, 2009 10:58 AM PDT

Twitter as a brand-builder: Three examples

by Don Reisinger
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Twitter is not yet completely mainstream, but several mainstream companies are using the service to communicate with customers and potential customers. Some use it to advertise products, while others use Twitter to field customer complaints.

I looked at how several companies are using Twitter, and have a few guidelines that brand managers can apply to make the nanoblog service work for them. It appears that there are some actions that companies simply must engage in if they want to take advantage of Twitter as a marketing service.

Starbucks: It's about the people
Companies are not people. Consumers, for the most part, have a hard time relating to an amorphous, inanimate entity like a corporate brand. But Twitter can change that by giving a company a human face that can speak to customers and change perception.

@Starbucks' Twitter strategy is worth looking at. Starbucks doesn't inundate Twitter followers with advertisements. Instead, its Twitter account gives consumers the opportunity to access the company in a way they never have.

When a user corresponds with a corporate account on Twitter, they may not really expect it, but will be happy to see that there's a person on the other end. I have sent messages to the Starbucks' profile, which, as it happens, is run by an employee of the company. The responses have thoughtful, forthright, and most importantly, human -- it doesn't stink of marketing rhetoric.

From a consumer's perspective, that's ideal. How often can we really get in touch with corporate people in the position to make a difference? In my experience, telephoning customer service usually yields nothing more than banalities and scripted responses. But a Twitter profile can allow me to talk to a person at the company, creating a scenario where I develop a dialogue between myself and the organization. And it changes my perception, and makes me feel heard. Starbucks does this very well.

Comcast: We care, and we'll prove it.
Giving a company a human face through Twitter is great, but it can't stop there. The representative who's assigned to the Twitter profile can't be an intern or someone who has no power at the company. Instead, the representative must have the power to address issues and make sure that a user who believes they're being treated unfairly can have their issues handled swiftly.

@ComcastCares does an outstanding job of not only empowering the individual behind its Twitter profile, but ensures that the Twitter profile is used to fully address major issues the company has faced in the past.

According to the American Customer Satisfaction Index, Comcast led every company in the U.S. in customer dissatisfaction in 2004 and 2007. Comcast's Twitter experiment is a small part of the solution.

Based on the research I've performed across Twitter Search and other third-party Twitter tools, @ComcastCares is achieving its goal of improving customer relations. The instances of users complaining about Comcast is declining, and the complaints are becoming minor.

If you look at the @ComcastCares page, you'll find the main reason for that success: the Director of Digital Care, Frank Eliason, is individually fielding questions and concerns from customers and asking them to send him more information, their phone numbers, or account information so he can address them swiftly. He's using his power at the company as well as his forum on Twitter to help customers. Without that power, he would be just as useless as Comcast's customer service number.

Zappos: Be part of the community
The Twitter community has certain expectations. Although companies are using Twitter to promote their brand, they should be aware that they're not above those ad-hoc rules. If they follow them like any other user, it'll only help them achieve their goal of improving brand opinion.

@Zappos is one of the companies that actually understands what it means to be a part of the community. Its Twitter activity goes beyond discussions about shoes and answering user questions. A simple search of @Zappos on Twitter Search reveals something that shouldn't be overlooked: by engaging the community and providing entertaining and worthwhile content outside of its business, @Zappos appeals to users even when they're not thinking about Zappos. Perhaps the best proof of that can be seen in its current follower count: 206,553 as of this writing.

Providing value to the community should be part of any company's plan when they go to Twitter. If we want ads, we can go to a company's website, so don't waste our time. Instead, use the blueprint provided by @Zappos, which is dominated by use of Twitpic, insider information about what's going on in the CEO's day, and more. It goes back to putting a face on the organization and it makes people actually care about what's being said.

And that's a key factor companies can't overlook: As consumers, we usually don't care about issues others face with companies until we have them ourselves. Answers to other customer concerns are often only important to that affected individual, and are ignored by the rest. But by providing more tweets about topics outside of customer complaints and advertisements, we start to actually listen to a company. Zappos proves that almost every day: it entertains with interesting tweets. It mentions sales every now and then, too. And I don't think I've missed a Zappos sales alert yet.

July 9, 2008 11:53 AM PDT

Google Maps used to track Starbucks closures

by Josh Lowensohn
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Although it has disclosed that 600 of its coffee shops will be closing up shop in the coming months, Starbucks will be unveiling only a small selection of closures per month.

That doesn't mean that you can't check if your favorite coffee watering hole (or office) is going the way of $2 gas. According to The Seattle Times, employees at stores that are facing closure have been given some extra heads-up to either find new jobs or transfer elsewhere.

That extra foresight has led to a special Google Map chronicling which stores will soon be going under, even if their closures have not yet been announced.

Keep in mind that not all of the Starbucks locations listed are definitely being shuttered. Most listings are based either on rumors or speculation, since the first smattering of downed stores has not yet been announced.

One thing is clear though: people in Northeastern Texas do not like a cup of joe.


View Larger Map
March 19, 2008 11:46 AM PDT

Starbucks caters to digital crowd with social-networking site

by Elinor Mills
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You know social networking has jumped the shark when Starbucks gets into the act.

Starbucks has launched My Starbucks Idea, an electronic suggestion box where people can offer up their best ideas for making the already ubiquitous coffee retailer even more successful.

You could say the company is as aggressive with its Internet campaigns as it is with its prices. There is Wi-Fi in the stores, they let you log onto iTunes to see what song is playing in the store and download it, let you use text messaging to find the nearest store, and they gave away free digital songs for a month last year.

You can offer up ideas, vote on other peoples' ideas, and get feedback from Starbucks employees. The company says it will consider implementing the most popular ideas.

Suggestions range from offering weekly coffee specials and holding coffee classes to selling books and having "more coffee smells."

I've got one: charge less for soy milk!

At My Starbucks Idea site, you can make suggestions and vote on other people's ideas, which may or may not be used by the coffee retailer.

(Credit: Starbucks)
Originally posted at News Blog
February 11, 2008 7:28 AM PST

Starbucks ditches T-Mobile for AT&T

by Caroline McCarthy
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Ubiquitous caffeine conglomerate Starbucks has ended its Wi-Fi partnership with T-Mobile in favor of one with AT&T.

Under the earlier plan with T-Mobile, Starbucks customers needed a paid subscription to access the in-store Wi-Fi service, and T-Mobile HotSpot subscribers will continue to have access to Starbucks Wi-Fi thanks to an agreement between AT&T and T-Mobile. But the new AT&T plan allows all customers 2 free hours per day, with a $3.99 fee for additional 2-hour chunks of time. Monthly subscriptions will cost $19.99 and will enable access to other AT&T hot-spot locations in addition to Starbucks.

In addition, AT&T broadband customers will be able to surf at the more than 7,000 Starbucks locations in the U.S. for free. The new Wi-Fi partnership is expected to be introduced gradually at Starbucks locations this spring.

It's an understandable move on Starbucks' part; the coffee chain has a number of deals in place with Apple and its iTunes Store. Apple uses AT&T as the mobile service provider for the iPhone. Rumors of a Starbucks mobile ordering interface for the iPhone have been circulating for months.

The new partnership also extends to the business side of Starbucks: AT&T will also power an "enterprise class" network for internal operations.

Originally posted at The Social
January 6, 2008 12:21 PM PST

First day at CES: A Hulu scoop?

by Molly Wood
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If Hulu.com officially launches from its private-beta state this week, you can say you heard about it from me first. It's only the first day of CES, and I already remember what I love about it: the dish.

Here's what happened. I was in line at Starbucks this morning, bright and early, and this nice man started chatting me up. Turned out he was from NBC Universal, but the actual television side and not the technology side (so while he'd heard of CNET, he probably didn't know I was mentally blogging our whole convo). So, we're talking about the future of television and how grim things are for traditional TV, and he tells me that the folks at NBC got an "internal e-mail" a few days ago about how, probably this week, they'll be releasing "this thing called Hulu." Me: "Oh, really? Interesting!"

So, my apologies to you, anonymous Starbucks line guy, and I hope I don't get you in trouble with any of the folks at NBC, but you made my CES day.

UPDATE: An NBCU representative called to let me know there will be NO Hulu announcements at CES. Bummer. That's the last time I listen to guys in the Starbucks line.

Originally posted at CES 2008
September 4, 2007 5:22 PM PDT

28 toy stores for cube dwellers

by Josh Lowensohn
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If your workplace is the couch at the local Starbucks, turn back now--this list is not for you. This guide is for those who work diligently at desks. This often small rectangle of space can become a canvas to display your personality to all. We've rounded up and categorized 28 places to buy things to take your barren desk to the next level.

      Emporiums/Cornucopias, etc.

      Places to get several types of items in one place

      Keep new projects from making their way to your inbox for good with this catapult from ThinkGeek.com.

      (Credit: Thinkgeek.com)

    • ThinkGeek is one of the better "everything under one roof" sites. Especially great is their user picture section, which lets purchasers post pictures of themselves using the product in real life. Stock photography be damned.
    • Perpetual Kid is another solid directory of good office, and general fun items. My personal favorite is the robot calculator that doubles as a stapler magnet and Post-it Note holder.
    • Hammacher Schlemmer. You've certainly gazed lovingly at one of these catalogs while stuck on a flight. The online store is no different; there are a ton of useful and interesting office gadgets to make your desktop a playground (with taste, of course).
    • Dealextreme has a little bit of everything. What separates it from the pack? Their weird gadgets section. The name doesn't lie. For example, get one of these to take notes at your next meeting.
    • Geekstuff4u has a good, clear listing of geeky gadgetry to adorn your cube. I have trouble deciding between the USB squid drive, and pop-up pirate USB hub that requires stabbing a pirate with plastic swords to get him to appear. Charming.
    • Kleargear is another handful of amusing and/or interesting gadgetry to buy. Worth checking out is their entire section dedicated to cubicle decor. Get an early start on Halloween with this gaudy skeleton you can attach to the top of your computer monitor. When people ask what it is, be sure to make some lame "spreadsheet from hell got loose" joke.
    • Firebox. Not to be confused with the popular Web browser, Firebox is neither on fire, nor a box. It does, however, have a lot of cool gadgets worth putting on your desk. The best for lunchtime breaks and releasing steam? The Rock Beat Drumsticks, which let you do an air guitar--except with drums. Your co-workers will love you.
    • ... Read more
Originally posted at Crave
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