Bloomberg news interviews Howard Schultz: Starbucks card now 25% of transactions
Bloomberg news interviewed Howard Schultz on May 10, 2012, and there were a few interesting points that I want to highlight.
Here’s the link to the video and interview:
I should be very clear that the above video belongs to Bloomberg.com.
Per the interview, one in four transactions is now through either the mobile card app or using the registered Starbucks card. Here’s what Howard says about that:
“Starbucks is the leading company and brand in the U.S. in terms of revenue and transactions on mobile phones. That, coupled with the Starbucks card, is now 25% of all transactions.”
I often emphatically post that partners need to know the card perks backwards and forwards, and I still intend to write more about that at a later time. With so many transactions via the card, it is now more important than ever for partners to know the perks.
Howard Schultz indicates that Starbucks now has over a 15% share of the K-cup market. That too amazes me, especially considering that one year ago, it was a zero. That means in about 8 months Starbucks has grown from no share of the K-up market up to 15%. That’s a lot of K-cups.
Howard Schultz told Bloomberg, “We have a winning hand, first with Via, which is single serve instant coffee where people can take Starbucks on the go, and then we have obviously this unique relationship with Green Mountain. Green Mountain is an installed base of about 12 million machines in North America. And in less than eight weeks since we went on the platform, we have over 15% share. So the demand for Starbucks coffee in a K-cup is quite significant and sustainable.”
At the end of the interview, Bloomberg TV’s Adam Johnson asks, “You wrote your book back in ’08, Onward, you laid out the platform … what’s the one core value that comes out of that book, that has driven business?”
And Howard replied, “That is a very easy question for me. Starbucks built its brand in a very unusual way — not through advertising or marketing — but quintessentially through the experience. And that experience comes to life through our people. The one thing we have tried to do, and we’re not perfect, is manage the company through the lens of humanity, providing health insurance for our people, equity in the form of stock options, giving back to the communities we serve, and also taking a position on the issues and the crisis facing the country. Most importantly, most recently, on how Starbucks can use its scale for good, and help the country create jobs.”
I just thought my readers would enjoy some of those interview segments. Again, all credit goes to Bloomberg.com. As just a side note, the book Onward was released in late March 2011, and given that the book covers numerous events in 2008 and 2009, it was likely written in 2010.
(Please use the Amazon.com widget in the right side column to buy your copy of Onward and support this blog – or use the widget to buy whatever it is you’d like! Thank you for your support.)