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    « Quality Accountability | Main | How Wide is Your Moat? »

    April 10, 2008

    Starbucks and Customer Analytics

    Anyone that frequents Starbucks (I'm sure there are still a few people out there who don't!) will notice that there is a major push to get people to register Starbucks cards.  I have to admit I use one and I'll get or give Starbucks card gifts.  Starbucks is offering free "add-on's" for people who register their card.

    Why is Starbucks putting on such a push and why would they be willing to cut into their profits to do so?  Its the information.  I use the cards often, but because I haven't registered I'm anonymous to Starbucks.  When I register they have much more information about me and my habits.  Corporate data crunchers can use this data to better target their customers and also to analyze trends that could lead to greater operational efficiency.

    A typical reprographer knows the volumes they run on equipment per month, the monthly sales and profit by office, and the sales by customer.  These trends are useful at a macro level, but if you can dive a couple layers deeper you may be surprised what you find.


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    bobbie coffman

    john, have you considered the patagonia model both as a way to improve business and to create good lives for employees?

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