Excellent Social Media Metrics = STARBUCKS

Performance improvement expert H. James Harrington once said, “Measurement is the first step that leads to control and, eventually, to improvement.”  His words certainly are spot-on for those attempting to take their content marketing efforts to the next level.

In order to test whether marketing efforts are successful or not, marketing metrics are used in keeping the marketing program on track by measuring where you were and where you are now.

Let’s look at the key value metrics of Starbucks Coffee which is the most recognizable and successful coffee brands in the world.

star

THE COFFEE GIANT, STARBUCKS BECAME ONE OF THE LEADING BRANDS IN SOCIAL MEDIA METRICS

How can social media metrics help the brand?

Social media is a powerful tool to be included in the overall business arsenal and its metrics assists in amplifying the results and speeding up the growth. When a brand is thinking of launching a new product or service, the metrics allows you to batch-test small initiatives (A/B testing). By testing the brand campaign along with staggered release on social media, together with great landing page which is targeted to each and every group that is packed with metrics goodness.

It helps the company to save the cost and also the time of a failed launch of a product that is a not a good fit for its target market.

Starbucks making use of social media metrics in an exceptional way:

  1. In Store
  2. Mobile
  3. Charity
  4. Online

In store:  It uses reward card tracking of what the customers purchase, their behavior patterns and the most popular item as well as the peak times of the store. It also offers free I-tune songs and applications to offer incentives and track redemption. The in store online surfing is tracked by the free Wi-Fi service offered by the brand.

Mobile: Starbucks uses foursquare and Facebook places (geolocation applications), to communicate with their customers on the go via check-ins on their phones, which activates the traceable hyper local metrics. Starbucks also engages and tracks the customer behavior by using augmented reality application called cup magic, both for I-phone and android. It can be downloaded by customers. The creative part is that it animates the graphics on their red holiday cup and also offers rewards.

rewards                                                                  (My Starbucks Rewards,2012)

Charity: By using cause marketing, Starbucks drives customer behavior by attaching the charity to purchased product. e.g. on sale of wristbands, CD’s etc. This can also assist in tracking customer effects on the purchase behavior.

Online: Starbucks have been using very effective social media metrics to their client base. They have over 705,000 twitter followers, more than 5,428,000 Facebook fans and over 1 million followers on Instagram.The social media management team doesn’t post pictures that often, but when they do, they are very eye-catching and ultra-clever. Such as one posted below, describing the steps to clean the filter of coffee press. Starbucks is definitely going beyond social media marketing metrics. starbucks_facebook                                                 (Steps To Cleaning The Filter Of Your Coffee-Press, 2014)

It uses a wide range of landing sites and pages to track the customer base online. By using listening and demographic metrics from its white label (a social networking site designed to encourage market research) My Starbucks Idea website, Facebook page, Gold Card rewards program and Twitter engagement, in order to measure and track the engagement people have with the brand.

With the objective of attracting new loyal customer base as well as keeping up with the present customers, Starbucks is applying metrics to offline programs and social media platforms which can help them to offer promotions, innovative and excellence in the products and rewards.

How an excellent use of social media metrics along with cross-platform tools have benefited Starbucks?

INCREASE IN GLOBAL SAME-STORE SALES

On what basis are they measured?

They are one of the significant drivers in the restaurant industry and an important valuation metrics. They are accounted by measuring a percentage change in the revenue generated by existing location over the same period in the previous year.

Across the world, Starbucks reported a growth in same store sales by 6% for its 10,515 company operated stores.

in store sales                                                            (Segment-Wise Same-Store Sales, 2014)

Looking at the above graph, the same store sales have been declining for segment of China/Asia Pacific. However, the overall same-store sales have continued to be over 5% in past 12 months.

Other benefits:

Same-stores sales are a result of customer traffic and ticket (average check).

What does ‘traffic’ and ‘ticket’ mean?

Traffic refers to number of customer visits, while increase in ticket refers to increase in the average check paid by the customer.

today                                                      (Same-Store Sales Vs. Traffic Vs. Ticket, 2014)

On referring the above data, the Starbucks average customer traffic of 2% in the quarter of 2014, in comparison with last year quarter of 7%. There was also an average increase in the ticket per transaction by 4%, compared to the previous quarter of 1%.

What did we learn?

Social media metrics is an excellent way to test new ideas, to use creative and innovative ways to engage and track customers. It definitely can lead to increase in sales, thereby leaving a positive impact on the brand.

 

 

Payal.V.Sathe

Username: pvsathe- 214282244

References:

“6 Metrics To Track When You Measure Marketing Effectiveness”. Content Marketing Institute. N.p., 2012. Web. 19 May 2016.

“How Starbucks Crushes It On Social Media”. socialmediatoday.com. N.p., 2014. Web. 20 May 2016.

“How Starbucks Succeeds At Social Media”. The CMO Site. N.p., 2012. Web. 20 May 2016.

“How Starbucks Uses Pinterest, Facebook, Twitter And Google+”. econsultancy.com. N.p., 2013. Web. 20 May 2016.

“How Starbucks Uses Pinterest, Facebook, Twitter And Google+”. econsultancy.com. N.p., 2013. Web. 20 May 2016.

“Must-Know: Starbucks’ Key Value Metrics—Traffic And Ticket – Market Realist”. Marketrealist.com. N.p., 2014. Web. 22 May 2016.

“Mystarbucksidea.Com”. Starbucks Coffee Company. N.p., 2016. Web. 20 May 2016.

My Starbucks Rewards. 2012. Web. 21 May 2016.

Same-Store Sales Vs. Traffic Vs. Ticket. 2014. Web. 22 May 2016.

Social Commerce: Marketing, Technology And Management. 1st ed. Springer, 2015. Web. 22 May 2016.

“Starbucks Coffee Turns Around By Using Excellent Social Media Metrics”. Social Media for Business Performance. N.p., 2014. Web. 21 May 2016.

“Starbucks Coffee Turns Around By Using Excellent Social Media Metrics”. Social Media for Business Performance. N.p., 2014. Web. 21 May 2016.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s