Brick-And-Mortar Retail Adopts New Tactics In The Battle With Online Retail

by MR Magazine Staff

Starbucks is doing something unique to improve sales. It is using mobile technology to increase repeat customers. Now, the online retail vs. brick-and-mortar conflict isn’t as clearly defined as it might seem. Starbucks has a very handy smartphone app that will guide you to the nearest store and hold your gift card balances. At the register, they just scan your phone and you’re done. Better yet, the app now has mobile ordering. Before you even get there, you can order your drink—customized however you like—and it will be waiting on the counter for you. You just walk in and grab it. Magic. This is where it gets interesting: The Starbucks loyalty program ties into the app too. It uses points to incentivize behavior, much like online merchants do. It does this by sending personalized promotion offers. This new approach to retail marketing isn’t the old shotgun advertising (pull the trigger and hope you hit something). It’s a sniper rifle aimed right at one’s weak spot. Read more at Forbes.