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EcommerceBytes-NewsFlash, Number 2728 - January 30, 2012 - ISSN 1539-5065    4 of 5

Starbucks Says It's Number One in World in Mobile Payments

By Ina Steiner
January 30, 2012

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Starbucks founder, Chairman and CEO Howard D. Schultz said mobile payment and mobile commerce is going to change the way in which consumers buy things, and he said Starbucks was the number-one company not in the U.S., but in the world, in terms of mobile payment, transactions and dollars.

Schultz was speaking last week at a post-earnings conference call with Wall Street Analysts (transcript on Seeking Alpha).

Almost 4 million people hold the Starbucks Card, the CEO stated, and one of every four people are buying with the loyalty card. The success of the card is partly due to the seismic change in consumer behavior as a result of the recession - there is a significant amount of pressure on the consumer in terms of value, and social digital media has become a primary vehicle to gain access to information, Schultz said.

Starbucks has also been able to balance the premium pricing of Starbucks, while creating value. And he credited social networking sites Facebook, Twitter and Foursquare for lowering the cost of customer acquisition compared to traditional advertising, which also enabled it to "build a more enduring emotional relationship with our customers."

(Hat tip to Scott Loftesness.)

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About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.

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