Quick Overview
Starbucks deployed Deep Brew, its proprietary AI platform built on Microsoft Azure, to analyze customer data from its app and loyalty program. Deep Brew personalizes marketing, optimizes store labor allocation, manages inventory, and enhances customer engagement, driving loyalty and operational efficiency.
Starbucks
Company Size
~400,000 employees
Revenue Range
$40B+ annual revenue
Primary Challenge
Delivering hyper-personalized customer experiences at scale while optimizing store operations and loyalty programs
Key Metrics
\- Significant growth in Starbucks Rewards members\- Digital orders account for over 30% of U.S. transactions\- Increased frequency of customer visits\- Higher transaction values\- Improved labor allocation and inventory management
The Problem
Traditional marketing and operations lacked precision and scalability for personalized experiences and efficient store management.
The Solution
Developed Deep Brew AI to analyze purchase history, location, weather, and local events; delivers personalized offers, customizes promotions, forecasts demand for staffing and inventory; integrates with voice assistants for seamless ordering.
Results
\- Increased customer engagement and loyalty\- Boosted sales through personalized offers\- Streamlined store operations and reduced waste\- Enhanced digital ordering and customer convenience\- Positioned Starbucks as AI-driven retail innovator
“Deep Brew has transformed how we connect with customers, making every interaction relevant and timely.”
Details
Industry
Retail & E-commerce
Departments
Marketing & Content
Creative & Design
Use Cases
Content Creation
Campaign Management
Customer Feedback Analysis
Tags
Machine Learning
Enhanced Decision-Making
Client Satisfaction
Marketing Teams
AI Tools Used
No items found.
Sources
https://digitaldefynd.com/IQ/starbucks-using-ai-case-study/https://news.microsoft.com/source/features/digital-transformation/starbucks-turns-to-technology-to-brew-up-a-more-personal-connection-with-its-customers/https://cmotech.asia/story/studio-rx-boosts-production-with-adobe-firefly-custom-ai-modelshttps://about.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-term-growth-strategy-for-a-limitless-future/https://thegrowthmaster.com/trends/starbucks-deep-brewhttps://www.studocu.com/en-us/document/babson-college/technology-entrepreneurship/starbucks-deep-brew/20607726https://digitaldefynd.com/IQ/ai-marketing-campaigns/
More Case Studies
See All
How Bank of America Uses AI and the Metaverse in “The Academy” to Revolutionize Employee Training and Customer Service Skills
Finance & Banking
How H&H Purchasing Automated Invoice Processing with zenphi’s AI Document Processing
Manufacturing
How Tapestry Transformed Enterprise Knowledge Management Using Generative AI on AWS
Retail & E-commerce
How Stitch Fix Uses AI to Deliver Hyper-Personalized Fashion Recommendations and Optimize Inventory
Retail & E-commerce
How NielsenIQ Combines AI and Retail Data to Deliver Real-Time Shopper Behavior Insights and Boost Sales
Retail & E-commerce
How Bizzabo Uses AI to Personalize Hybrid Event Experiences and Optimize Resources
Hospitality & Tourism