professional work

Starbucks Delivers Korea

customer-centric enhancements to Starbucks' digital services
Time
January 2021 -
March 2021
Contribution
Customer Research
Brand Strategy
UX Research
Team
Starbucks Last-Mile Team
: Cross-Functional Team of 10
pROJECT OBJECTIVES

Create Starbucks Korea’s First Delivery Pilot Program

Unlike in the US, Starbucks Korea had long resisted the allure of delivery services, believing that the essence and heritage of their brand rested in the face-to-face interactions within their brick-and-mortar stores.
They feared that venturing into delivery might dilute the very core of the rich brand experience.

We conducted comprehensive customer research to convincingly demonstrate to the top management that this belief is far from accurate. As a result, with leadership’s full support, we embarked on the Starbucks Delivers store and app project.

outcome

Brand-Relevant Delivery Experiences with ~16% Store Sales
from Delivery

  • Added new delivery features to the Starbucks App; Enhanced the app’s marketing tone and manner.
  • Planned and launched two Starbucks Delivery stores: stores dedicated solely to delivery, adjacent to the SSG Go stores, part of Shinsegae Group’s last-mile delivery pilot program.
  • Collaborated closely with the Starbucks menu development team to curate and develop specialized drinks, containers, packaging, and custom marketing tools vital for deliver.
  • Devised a strategic marketing initiative: Incorporating heartfelt appreciation hand-notes from store staffs to preserve the brand’s essence and prevent any potential dilution.

Introducing a New Starbucks Delivery
Feature to Starbucks App

The delivery service within the Starbucks App was newly launched, featuring improved functionalities such as the payment system and real-time delivery status, based on Voice of Customer feedback.

Step 1

Step 2

Step 3

Step 4

Step 5

Home

Collecting Personal Info.

Choose Pick-up Location

Browse Menu

Product Detail

Step 6

Step 7

Step 8

Step 9

Step 10

Order Summary

Collecting Personal Info.

Receive Order

Order Completed

Review Order

Delivery Services on Both
On- and Off-line Platforms

Designed and launched a comprehensive delivery program for five Starbucks stores
The work includes opening of two delivery-only stores, introducing new packaging for deliveries,
and initiating a new marketing campaign featuring analog, hand-written notes.

Review Order

New Package Design for Delivery

Bring Analogue Touch

Designed and opened two pilot delivery-only stores
at the heart of Seoul's promising districts

Introduced a new packaging system for
delivery only products

Adapt hand-written notes from Starbucks store partners, offering analog feel, and instagrammable moments

Evaluation: Voice of Customers

After launching the online delivery service, we gathered Voice of Customer (VOC) feedback to understand how users feel about the service and to identify their suggestions for improvement.

Based on this data, we refined the app's usability and proposed gradual improvements to be implemented directly by Starbucks Korea's internal digital service team.

Impact on Revenue

In addition to evaluating the service’s usability, we also assessed its impact on revenue. The demand for Starbucks' on-demand delivery service exceeded expectations, prompting plans to expand the service to 40 more stores by the first quarter of 2022.

Research insight

Starbucks App & Voice of Customers Analysis

Based on the 'Alpha App Moderated Study' conducted by SpreeAI in August 2024,
two major challenges emerged.

First, users experienced difficulties during the photo capture process. Additionally, while users appreciated
the try-on image, they expressed a desire for the ability to make their own adjustments to the photo.

Pain Point 1. Excessive Use of English

The Starbucks App is highly personalized compared to competitors, but customers often complain about its excessive use of English.

Pain Point 2. Inefficient Scrolling

Starbucks Korea App displays few menu items compared to Starbucks U.S., resulting in more scrolling; incosistency in the product image backgrounds.

Pain Point 3. Hard Time Checking Delivery Status

Two biggest customer complaints during delivery services are the difficulty in checking“real-time delivery status” and the inability to place additional orders after the initial order.

Brand strategy

Starbucks Delivery Pilot Stores in Seoul

We picked 5 sites – 3 existing Starbucks stores in Seoul’s bustling business districts and 2 new delivery-only formats in the Gangnam district.

New Drink and Food Offerings Exclusive for Delivery

As a winning on-demand product strategy, we introduced a selection of beverages, food, and merchandise that were exclusively available through our on-demand delivery service.

^
reflections

The biggest takeaway from this project for me was understanding how a ‘digital experience’ can enhance the ‘physical experience.’ While on-demand services were common among competitors, Starbucks Korea was initially resistant to compromising the value of the ‘physical experience,’ where staff personally deliver warm greetings and coffee to customers in-store. However, as modern consumers increasingly demanded the convenience of having coffee anytime and anywhere, even without visiting the store, this demand was something we couldn’t ignore.

By developing exclusive packages for the ‘on-demand’ service and assessing the usability of the digital experience, it became clear that we were meeting customers’ expectations for a modern, evolved version of Starbucks.

Just as people adapt to their environment and evolve over time, a brand must also organically adjust to meet these changing needs.

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