Monday, October 28, 2013

Starbucks Using Twitter to Gift

Starbucks has instituted a new program that allows you send a gift card to a friend via Twitter. Simply link your Starbucks account to Twitter and link a credit card to your account, then tweet "@tweetacoffee" with the recipient's Twitter handle. Though the idea is not that novel (they launched a program in 2011 that allowed users to send gift cards through Facebook), it does push the envelope on the company's services via Twitter and does indicate where services companies may be headed on social media and Twitter.

This gift card program is essentially Starbuck's closest attempt at e-commerce, and I think it will have an (albeit small) impact in driving sales. First, for the novelty of actually trying to use the program. Second, because coffee is an easily giftable item, as it is cheap and universally liked. Third, and perhaps most importantly, it will bring more users to Twitter and get bigger impressions for its Twitter messages, thereby reinforcing top-of-mind awareness and indirectly increasing sales. In part due to a similar program in 2011, Starbucks has 35 million fans on Facebook. Conversely, they only have about 5 million followers on Twitter. There shouldn't be such a large disparity in these numbers, and this program should help to close the gap.

Other companies can learn from this program, as a potentially huge revenue stream can be created if a company can sync your company account (and credit card info) to your Twitter handle. Food delivery places can take a service orders quicker, restaurants and service industries can take reservations, and e-commerce sites can have easier, more automated ordering. A simple tweet can be made easier than phone calls or navigating a web page, and can also open up a direct line of communication with the consumer, and if both Twitter and its business partners can tap into the commercial potential of linking their consumers' accounts, Twitter can become a very integral part to many companies' business growth strategies.

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