Page 295 - Electronic Commerce

Chapter 6

with each other and then uses the information it gathers to improve its products and services and

develop strategies for keeping those customers and attracting new ones.

Starbucks sees social media as an extension of the barista–customer relationships that develop

in its stores along with the relationships that arise among its customers as they enjoy Starbucks prod-

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ucts and the atmosphere of its stores. Instead of communications from Starbucks directed at custom-
ers, the company uses social media to provide a platform for customers to talk with each other about

their favorite Starbucks products.

Starbucks also integrates mobile technology with the customer experience by accepting pay-

ments from mobile devices and by providing a Starbucks mobile device app that lets customers man-

age their loyalty program benefits.

Whereas most companies embrace the common wisdom that sees social media and mobile
technologies as just another advertising channel, Starbucks has taken a different approach: expand-

ing its connection to individual users. Cementing these connections with insights gained by being a
social media observer rather than an active participant has helped the company outperform most

other consumer brands in the world of online consumer engagement.

FROM VIRTUAL C OMMUNITIES
TO SOCIAL NETWORKS

In Chapters 3 and 4, you learned how businesses use the Web to create online identities,
reach customers, and sell products and services to those customers. In Chapter 5, you
learned how businesses are using the Web to purchase goods and work with their
suppliers more effectively. In all three of these chapters, the focus was on how companies
are using the Web to improve the things that they have been doing for years, primarily
buying and selling. In this chapter, you will learn how companies are using the Web to do
things that were either very difficult or impossible to do before online connectivity
became commonplace. The Web enables people to form online communities that are not
limited by geography. Individuals and companies with common interests can connect

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