Brewing Loyalty with AI: Starbucks` AI-Powered Rewards Program Redefining Personalization
| Case Code: MKTG482 Case Length: 7 Pages Period: 2010-2025 Pub Date: 2025 Teaching Note: Available |
Price: Rs.400 Organization : Starbucks Corporation Industry : Food & Beverage Countries : United States Themes: Digital Marketing, Artificial Intelligence, Digital Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Deep Brew: How It Was Built & What It Did
Changing trends in the market catalyzed the company’s decision to create Deep Brew, its proprietary AI engine. With this, it embarked on the journey to redefining customer allegiance through technology. Starbucks decided to capitalize on its digital assets not only for the sake of expediency..
Results of Embracing AI
Deep Brew enabled Starbucks to vigorously apportion labor and handle inventory, which ensured that its stores were staffed and adequately stocked to meet the predicted increase in demand. Deep Brew extended to the equipment, where espresso machines collected data on preparing beverages and their..
Risks & Ethical Dilemmas
Starbucks faced some challenges with its AI strategy, especially when it came to protecting customer privacy, preventing bias in algorithms, and making sure the “human connection” at the heart..
The Future of Starbucks’ AI Strategy
Starbucks continued to invest in new technologies to improve customer engagement further. It had plans to use AI to auto-customize drinks, with the customers being given the option of getting AI-generated suggestions for customizing their orders. The factors that would be considered for customizing drinks were much more than the past purchase data, seasonal trends, and weather conditions. The hyper personalized suggestions were expected to result in high per-transaction spending..
Exhibits
Exhibit I: Starbucks’ Digital Growth Metrics (2011–2024)
Exhibit II: Deep Brew Features Matrix – Starbucks’ Digital Transformation
Exhibit III: Personalization Impact Metrics – Deep Brew at Starbucks
Buy this case study (Please select any one of the payment options)
| Price: Rs.400 |
Price: Rs.400 | PayPal (9 USD) |
