Starbucks’s Free Wi-Fi Strategy Revealed

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All Starbucks stores now offer free Wi-Fi in the United States and as a coffee lover I hope this would be implemented globally soon.

When Starbucks’s free Wi-FI idea first came up, everyone probably thinks that this is just a straightforward upgrade.

The idea is simple but impactful, especially to people without mobile Internet access. But it seems like there is more to it.

The Wi-Fi idea is strongly driven by the recently revealed Starbucks Digital Network (SDN). The network aims to provide premium content exclusively for its customers. These handpicked content includes The New York Times, Apple and leading healthy publisher, Rodale.

“We know that people would pay us for this opportunity. But instead of asking them to pay us, we thought, ‘Let’s aggregate and compile the best content that [Starbucks customers] can’t get any where else’,” explains Adam Brotman, Starbucks’ Vice President of Digital Ventures.

In fact, when it comes to SDN, there’s no money changing hands between Starbucks and the content providers. Content providers are giving away restricted access in the hopes of attracting new business, and Starbucks wins by having something completely unique and customers benefit from by getting something of value at no cost. Brotman says, “It’s a win-win for everyone.”

Consumer experience

Starbucks is certainly the leader when it comes to providing the best consumer experience. Its competitors are nowhere near and are probably gasping for air trying to catch up with its pace. It’s another great example showcasing how technology is smartly leveraged to create competitive edge.

It’s great strategic move, no doubt, and may give rise to a good problem. Assuming there will be an influx of people coming into Starbucks for its free Wi-Fi and content, I believe Starbucks would need to install more power points to meet demand.

[Source: Mashable]