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Starbucks Mobile App is Their Achilles Heel. What?

Howard Schultz said their mobile app is one of their greatest strengths and Achilles heel. This was said during an interview on the Acquired podcast. Really fun to listen to at 2x speed because it's over three hours long. Thanks, Sallie Guillory, for sending me the episode.

Around the two hour mark, they talk about how the Starbucks mobile app got started. Starbucks wasn't a technology company at all. They used old tech for a long time, and Howard didn't really think about technology. So, Starbucks having a mobile app wasn't a layup. The app had to be pitched and proven. It's crazy to consider since, as of 2024, 33% of their sales come through mobile orders, over 14 billion dollars are loaded on gift cards yearly, and they recently started to open mobile order stores.

Why does Howard Schultz say their mobile app is their Achilles heel?

If you've read his book Onward: How Starbucks Fought for Its Life Without Losing Its Soul, you know Howard holds the experience of getting your coffee super high. Yes, their coffee is high quality, but your experience entering a store is just as important. It's why they can charge such high prices. I was recently in the Philippines and noticed so many more Starbucks locations since my last visit. I asked one of my friends how so many people can afford a cup of coffee from Starbucks, considering it's expensive in the United States, and I could only imagine what that means for people in the Philippines. The answer was because of the status of holding that cup means in the Philippines. It is not too different from having an iPhone, which is a status thing too. If you have that white cup with a green logo it means something. The experience of going to a Starbucks elevates the status of Starbucks more than the actual cup of coffee. I mean, the coffee still needs to be good.

The question Howard is asking is how do we leverage the app not to just sell more coffee but to hold to the standard of a great experience? If Starbucks can't provide a great experience with the app, they need to be strategic in leveraging this technology. Maybe even putting some limits to how they use it. He unpacks how the app created many new problems, like mobile orders not being easy to pick up, people being confused about why it says it's ready but not, etc. These problems degraded the experience, which affected the brand of Starbucks.

I love this thinking from Starbucks around digital and technology. Technology doesn't magically fix your problems. It may even introduce new problems. For example, you might say your greatest strength as a church or ministry is the community. Spinning up a stream, website, something on social, or a mobile app may degrade your church's "community" experience. Now, you may be reaching more people with how many views, but they aren't really experiencing your church the same as being in person. This may lead to them not sticking around long-term. I'm sharing this Starbucks example to scare you about embracing digital and technology, but not to assume it will fix your church.

Practical things you can do to embrace digital and technology wisely:

  1. Understand the pros and cons of the digital and technology you are using. Lean into the strengths and address the weaknesses where needed. Maybe ask your teams this question. I bet your teams know what is and isn't working. They will know what things you should be using and maybe areas where technology or digital is causing a negative response. For example, online giving is an amazing digital tool, but is it personal? No, it’s not personal. You give, then get an automated email saying thanks for giving. Maybe you need a team monthly, a few times a year, or yearly to call people who have given to your church and thank them. Maybe you can send them a letter. Yes, a letter. Go old school and handwrite that thing. Think hybrid with your strategy. Online with in person usually produces a better outcome.

  2. Introduce strategic friction to drive your church/ministry objectives. Know what the goal is and say yes to having something streamed or on-demand, but maybe link the next step to in-person. For example, you offer a membership class on Zoom, but to officially become a member, they have to interview someone in person. Things can be hybrid, where it's partly online and partly in-person. Zoom, YouTube, and a podcast can be great for getting the content part of your class done, but the final step could be linked to something about community, like an in-person interview. There are many ways to do this, but just because online is used doesn't mean it needs to be divorced from a community experience. If it is all on Zoom, then at least do Breakout Rooms so people can connect with others.

  3. Ask the following questions regularly: What needs to be in the room, and what can be decentralized with digital or leverage some type of technology? Our goal isn't to fill a room but to produce spiritual fruit. There are many ways to use digital and technology to accomplish more of your church/ministry objectives. Don't default to the room experience always. Ask what is best per your objectives. A great way to think about this is when a text is okay, a phone call is needed, maybe a Zoom video meeting, or it needs to be in the room. Ask what the objective is with your program/ministry, then ask what format is needed (text/phone/Zoom/"in the room"). Maybe an email blast with a YouTube link is okay, or this needs to be something that happens in the room. Again, let the objective drive the deliverable. Another great resource is the “Alpha Omega Digital Tool,” which you can review with your teams.

I wrote my book on this topic so teams could walk through this topic together. Maybe purchase a team bundle and go through it in 2025 with your staff/volunteers. You can purchase team bundles on my store or get the book on Amazon.