Assignment Prompt & Instructions
– ## Week7assignment.docx
– ## SelectionofCompanyandProblemweek11.docx
– ## Week5AssignmentF.Nicaragua.docx
**## Week7assignment.docx**
This assignment should reflect 2 weeks' worth of work. For this assignment, the business analyst tools Microsoft Excel, Survey Monkey, draw tools, decision trees, chart of KPIs, SWOT analysis, 10k annual reports, PADIO, and EQ will accompany your paper.
**Criteria:**
The final report on the Course Project will support the chapter learning from your BABOK® Guide, live class lectures, and in-class lessons. Incorporate all of the work from previous parts of your project into this final part. In addition, there will be several new sections to be written. This is your opportunity to let your critical thinking, analysis, and problem-solving observations shine. Your final paper will be a fully developed solution moving through the problem-solving tasks of planning, elicitation, analysis, requirements designing and developing, solution alternatives evaluation, implementation of the best solutions, and the operational stage of training, maintenance, and evaluation.
**Assignment Instructions:**
Must be 10-12 pages in length. Follow APA format for title page, citations, reference page, and appendix. APA headings should be used to delineate the required sections: Executive Summary, Enterprise Business and Industry Analysis
**## SelectionofCompanyandProblemweek11.docx**
2
**Business Analysis and Problem-Solving Strategy for Starbucks Corporation**
Francis Nicaragua
Keiser University
BUS510G3-107072025
July 12th 2025
**Business Analysis and Problem-Solving Strategy for Starbucks Corporation**
Introduction to the Company
Starbucks Corporation, ranked below the top 100 in the 2024 Fortune 500 list, is a globally recognized leader in the coffeehouse industry. Founded in 1971 in Seattle, Washington, Starbucks has grown into a multinational chain with over 35,000 stores worldwide (Starbucks, 2025). Its success stems from offering high-quality coffee, a unique customer experience, and an inviting ambiance. Despite its market dominance, Starbucks faces several operational and strategic challenges that require targeted business analysis and innovative solutions to maintain its competitive edge.
Company History and Market Position
Starbucks began as a single store selling roasted coffee beans and equipment. Under the leadership of Howard Schultz in the 1980s, the company transformed into a café-style coffee chain inspired by Italian espresso bars. Its mission, “To be the premier purveyor of the finest coffee in the world, inspiring and nurturing the human spirit—one person, one cup, and one neighborhood at a time”, has helped shape its brand identity (Starbucks, 2025). Over the decades, Starbucks has diversified its offerings, incorporated technology like mobile ordering, and expanded into global markets. However, recent issues such as declining customer loyalty, increasing operational costs, and growing competition have challenged its market position.
Identified Problem
A critical problem Starbucks faces today is declining customer loyalty in specific key markets, particularly in North America. Despite its loyalty program, Starbucks Rewards, there has been a noticeable drop in user engagement and repeat visits (PYMNTS, 2024). This is partially attributed to rising product prices, inconsistent service quality, and growing competition from local coffee shops and other chains offering more customized and affordable alternatives. In an era of digital transformation and personalized experiences, Starbucks must rethink how it maintains and increases its customer base.
Problem Owner and Stakeholders
The primary problem owner is Starbucks’ Chief Marketing Officer (CMO), responsible for customer engagement strategies and brand loyalty initiatives. Secondary stakeholders include store managers, baristas, the technology and customer experience teams, and the loyal customer base. Shareholders and business analysts also have a stake, as customer loyalty directly impacts revenue and long-term growth.
Application of Business Analysis Approach
I will apply a structured business analysis approach outlined in Chapter 1 of the BABOK® Guide and the PADIO model (Problem, Analysis, Design, Implementation, Operation) to address this challenge. This framework comprehensively solves organizational problems by leveraging data, stakeholder input, and decision-making tools. The following section describes the five stages of this approach and how they apply to the identified problem.
Planning Stage
The planning stage involves setting objectives, defining scope, and determining resource requirements. The goal is to improve the Starbucks Rewards program to re-engage customers and enhance retention. Key planning tasks will include assigning a cross-functional team of marketers, data analysts, and IT specialists and setting a six-month timeline for the project (Khandelwal & Kapoor, 2025). During this stage, I will establish key performance indicators (KPIs) such as app engagement rates, number of active rewards members, and customer satisfaction scores.
Analysis Stage
In the analysis stage, I will collect and evaluate relevant data to understand the root causes of loyalty decline. This includes customer surveys, mobile app usage analytics, and competitive benchmarking. According to Liu et al. (2021), organizations that regularly assess customer behavior through digital channels are more likely to implement successful engagement strategies. By segmenting the customer base, I will identify trends among disengaged users, such as age group preferences, reward dissatisfaction, or pricing sensitivity. Additionally, competitor analysis will reveal which loyalty features attract customers elsewhere, such as tiered rewards, gamification, or partnerships.
Design and Development of Alternative Solutions
After analyzing the problem, I will design three alternative strategies to revitalize customer loyalty: introducing personalized rewards based on purchase history, integrating a social gamification element to encourage peer interaction, and forming partnerships with complementary brands to offer diverse reward options. Each solution will be assessed for feasibility, alignment with Starbucks’ brand, and estimated ROI. The team will prioritize the solution that balances customer appeal with operational scalability by drawing from BABOK’s techniques, such as SWOT analysis and stakeholder impact analysis.
Implementation Stage
After choosing the desired solution, they will proceed with the programming, testing, and implementation. To illustrate, in the case of Starbucks introducing personalized rewards, the implementation activities will involve updating the application, combining it with the backend, educating its workers, and advertising the new functionality. A pilot study will be conducted in a few metropolitan areas for a three-month trial. To manage this stage, best practices in project management will be used to ensure that the tasks can be done on time and within the budget. Designing features and fixing bugs can happen more frequently because of the feedback loop and agile development means of improvement, before massive implementation occurs.
Operational Stage: Maintenance, Training, and Evaluation
The next phase will be the implementation stage once the project has been rolled out. Maintenance work involves overseeing the performance of the systems, rectifying bugs, and tweaking rewards depending on customer feedback. Baristas and store managers will receive constant training, the purpose of which will be to help customers navigate the applications and redeem rewards. Finally, analysis will be carried out through an extensive review of the program's effects on the loyalty figures. Post-implementation reviews play an important role in measuring the value of a business and how it can be optimized later (IIBA, 2021).
To sum it up, Starbucks will have to deal with the problem of low customer loyalty using systematic approaches to business analysis. The company can identify the underlying reasons, devise new ideas, and introduce customer-related enhancements in its loyalty program by introducing the PADIO model and BABOK principles. With careful planning, data analysis, investigation of options, and a careful implementation and operations strategy, Starbucks can renew customer interest and reinstate its position in the market. Business analysis allows us to approach such a dilemma and sets the platform for long-term strategic success.
**References**
International Institute of Business Analysis. (2021). A guide to the business analysis body of knowledge (BABOK Guide) (3rd ed.). IIBA.
Khandelwal, R., & Kapoor, D. (2025). Gamification Strategies for Enhancing Customer Engagement and Loyalty. In
_Addressing Practical Problems Through the Metaverse and Game-Inspired Mechanics_ (pp. 97–122). IGI Global Scientific Publishing.
Liu, Y., Liu, X., Wang, M., & Wen, D. (2021). How to catch customers’ attention? A study on the effectiveness of brand social media strategies in digital customer engagement.
_Frontiers in Psychology_,
_12_, 800766.
[https://doi.org/10.3389/fpsyg.2021.800766](https://doi.org/10.3389/fpsyg.2021.800766)
PYMNTS. (2024).
_Starbucks plans to revive its strategy as customer visits decline_. PYMNTS.com.
[https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/](https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/)
Starbucks. (2025).
_About Starbucks_.
[https://about.starbucks.com/mission/](https://about.starbucks.com/mission/)
**Appendix**
## image1.png
**## Week5AssignmentF.Nicaragua.docx**
2
Starbucks Corporation Solution Assessment
Francis Nicaragua
Keiser University
BUS510G3-107072025
Instructor Lisa Kramer
08/10/2025
Starbucks Corporation Solution Assessment
This analysis examines Starbucks Corporation and a specific problem that affects performance and growth: a decline in customer visits and engagement with the Starbucks Rewards program in key markets. Starbucks remains one of the largest global coffeehouse brands, yet recent quarters show pressure on traffic and loyalty that warrants structured analysis and targeted action. In late 2024, financial coverage reported falling visits and a need to restore the core experience, which frames the business case for intervention (PYMNTS, 2024). The company simultaneously positions Rewards as a critical lever for growth and experience innovation, underscoring the importance of diagnosing the current state and testing solution paths.
Company Problem and Context
The immediate problem centers on lower repeat visits and softening engagement among Rewards members, even as the program remains very large. Market analysts have noted that adding more discounts in the app did not reverse the trend, and they argue the program’s scale now exposes design flaws that may depress perceived value or relevance (Starbucks, 2025). Moreover, customers increasingly expect personalized value and exclusive experiences rather than generic offers, which raises the bar for program design across retail categories (Boston Consulting Group, 2024). Finally, the current terms of use include star expiration rules that can reduce perceived fairness if members do not redeem frequently, which suggests friction that may erode engagement among value-sensitive segments.
Stakeholders and Status Quo Map
The core problem owner is the Chief Marketing Officer, who is accountable for the Rewards strategy, brand equity, and customer lifetime value. However, the broader stakeholder network includes store managers, baristas, the technology and data teams, and the customer community that uses the app. The status quo diagram in Appendix A visualizes current flows among the CMO office, analytics and technology teams, the data platform, stores, customers, and pain points around engagement and perceived value. The Starbucks Rewards page and growth strategy announcements confirm that digital experience and membership are central to the brand agenda, so mapping the current state is a necessary precursor to solution testing (Tan, 2023).
Analytical Frame and Decision Approach
Because this problem spans people, process, technology, and value propositions, the analysis uses standard business analysis practices from the BABOK Guide to structure discovery, options analysis, and stakeholder evaluation. The BABOK knowledge areas support tasks such as stakeholder analysis, current state assessment, future state definition, and risk management, which align directly with this project’s needs (International Institute of Business Analysis, 2015). In addition, the analysis draws on peer-reviewed research about loyalty and gamified engagement so that solution design is grounded in evidence, not conjecture. For example, personalization and gamification can strengthen engagement and reduce switching, which is directly relevant to the crowded coffee category.
Alternative One: Personalized Rewards and Adaptive Offers
The first alternative deploys a personalization engine that uses first-party data to tailor rewards, challenges, and recommendations to each member’s purchase history and behavioral patterns. Research on loyalty programs demonstrates that tailored benefits meaningfully increase satisfaction and program value, which supports this direction for brands with rich data assets (Myftaraj & Trebicka, 2023). Further, recent empirical work shows that gamified elements tied to meaningful goals can drive sustained engagement when they satisfy utilitarian and experiential motives, and personalization makes those goals feel relevant (Zhang, 2025). In practice, the Starbucks team would classify members into dynamic segments and deliver adaptive offers, expiring boosts, and timely reminders before stars expire, which reduces the friction of the current terms. The diagram in Appendix B shows the flows among the CMO office, the personalization engine, the data platform, the privacy and compliance function, the app, and the store network.
Alternative Two: Partner Rewards and a Gamified Ecosystem
The second alternative expands value beyond coffee by creating a partner-enabled reward marketplace and community challenges that connect Starbucks visits to cross-brand perks. Strategy communications from the company have already highlighted partnerships as a growth lever, which indicates organizational readiness for this path if designed with clear value exchange and store friendliness (Tan, 2023). In parallel, recent work on tokenized or partner-backed rewards suggests that new reward forms can raise intention and retention when the benefits are easy to understand and redeem, strengthening the case for a curated marketplace and simple redemption ladders (Boukis, 2024). The diagram in Appendix C maps the flows among the CMO office, partner brands, a reward marketplace service, a social gamification layer, the app, and the store network, with special attention to operational simplicity at the counter.
Decision Criteria and Weights
A multi-criteria approach evaluates the two alternatives using criteria that reflect brand strategy, feasibility, and risk. The criteria are customer impact at 35 % weight, strategic fit at 15% weight, implementation feasibility at 15% weight, cost efficiency at 10% weight, time to value at 10% weight, privacy and compliance risk at 10% weight, and operational complexity at 5% weight. These criteria align with BABOK guidance on value assessment and risk analysis for future state options and are informed by external evidence on what drives loyalty adoption and engagement (IIBA, 2021). Moreover, the weights reflect Starbucks' communications about the centrality of customer experience and speed to deliver improvements at the store level. This keeps the evaluation tied to the brand’s stated priorities.
Scoring the Alternatives and Explaining the Results
Using a one to five scale, where higher is better, the analysis assigns each criterion a score for both alternatives and then multiplies by its weight to produce a total. Personalized rewards scores as follows: customer impact five, strategic fit five, feasibility four, cost efficiency three, time to value four, privacy and compliance three, and operational complexity three, for a weighted total of 4.25 out of five. By comparison, partner rewards receive: customer impact four, strategic fit four, feasibility three, cost efficiency four, time to value three, privacy and compliance two, and operational complexity three, for a weighted total of 3.50 out of five. Consequently, the personalized path leads because it creates immediate relevance with data that Starbucks already holds, whereas the partner path adds extra coordination and privacy complexity that can slow impact.
Evidence-Based Rationale for the Preferred Alternative
The personalized rewards alternative best addresses the engagement problem within a reasonable timeline and risk profile. Academic studies consistently show that tailored offers and gamified tasks increase perceived value and reduce switching, which fits a market where customers can easily choose local alternatives or other chains (Zhang, 2025). In addition, program critiques in the trade press suggest that simply increasing generic discounts does not fix the underlying issue, so more relevant and dynamic value is needed for members with many choices and high expectations (Starbucks, 2025). Finally, the company’s strategy statements emphasize digital features that help partners and stores run smoothly, which aligns with a solution that enhances the app but keeps the store experience simple for baristas and managers (Tan, 2023).
High-Level Implementation Roadmap for Personalized Rewards
The implementation begins with design and governance so that data use and privacy safeguards are explicit. The first six to eight weeks define the personalization objectives, the segmentation logic, the reward and challenge catalog, and the consent and opt-out flows, all in consultation with privacy and compliance. The next twelve to sixteen weeks will build and test the learning models, the in-app experience, and the operational playbook for store partners, followed by a three-city pilot with weekly measurement and improvement. Research indicates that gamification works best when goals are meaningful and feedback is timely, so the pilot should include clear micro goals, visible progress indicators, and easy redemption to translate intent into visits (Zhang, 2025). As the pilot scales, the team can add simple social features that allow members to accept friendly challenges or share progress, but only when store impact and privacy controls remain tight.
Risks, Mitigations, and Success Metrics
The main risks are data quality gaps, model bias, customer fatigue, and the possibility that added complexity slows barista routines. Therefore, the mitigation plan includes conservative model rollouts, frequent A and B tests, clear caps on message frequency, and a store partner feedback loop to surface friction quickly. Since star expiration can frustrate light users, the program should add pre-expiry reminders and limited-time rescue boosts that help members redeem with dignity, directly addressing a known friction point. Success metrics include increased active Rewards members, monthly actives to total member ratio, redemption rate, frequency per member, and a lift in same-store sales in pilot markets relative to matched controls. In addition, the company should track barista task time and satisfaction to ensure the store experience remains warm and efficient, which the brand has identified as central to its identity and future growth.
Conclusion
In conclusion, this analysis concludes that Starbucks should prioritize a personalized rewards and adaptive offers strategy to counter loyalty decline and stimulate repeat visits. The decision follows a structured evaluation grounded in BABOK practices and informed by research that links personalization and gamification to higher engagement and lower switching. Although a partner-enabled reward marketplace promises future waves, it likely delivers slower impact and introduces more operational and privacy complexity in the near term. By focusing on member relevance, store simplicity, and measurable learning, Starbucks can translate brand scale into daily value that feels personal and timely. Finally, the attached diagrams map the current state and the two solution paths so stakeholders can align quickly and proceed with disciplined execution.
**References**
Boukis, A. (2024). The effect of tokenized rewards on customer loyalty programs.
_Annals of Tourism Research_,
_109_, 103851.
[https://doi.org/10.1016/j.annals.2024.103851](https://doi.org/10.1016/j.annals.2024.103851)
International Institute of Business Analysis. (2021). A guide to the business analysis body of knowledge (BABOK Guide) (3rd ed.). IIBA.
Myftaraj, E., & Trebicka, B. (2023). Analyzing the impact of loyalty card programs on customer behavior: insights from the Albanian market.
_F1000Research_,
_12_, 1028.
[https://doi.org/10.12688/f1000research.138185.3](https://doi.org/10.12688/f1000research.138185.3)
PYMNTS. (2024).
_Starbucks plans to revive its strategy as customer visits decline_. PYMNTS.com.
[https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/](https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/)
Starbucks. (2025).
_Starbucks® rewards terms of use: Starbucks Coffee Company_. Starbucks Coffee Company.
[https://www.starbucks.com/rewards/terms/](https://www.starbucks.com/rewards/terms/)
Tan, T. (2023).
_What’s next? Starbucks unveils long-term growth strategy for a limitless future_. Starbucks Corporation.
[https://about.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-term-growth-strategy-for-a-limitless-future/](https://about.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-term-growth-strategy-for-a-limitless-future/)
Zhang, J., Zou, Y., Wang, S., & Xiang, Y. (2025). Consumer experience and perception in gamification marketing: evidence from the user survey of POPMART.
_Frontiers in Communication_,
_10_, 1388020.
[https://doi.org/10.3389/fcomm.2025.1388020](https://doi.org/10.3389/fcomm.2025.1388020)
**Appendices**
**Appendix A: Status Quo Diagram**
**Appendix B: Alternative One Diagram**
**Appendix C: Alternative Two Diagram**
## image1.png
## image2.png
## image3.png
**## Week5AssignmentF.Nicaragua.docx**
2
Starbucks Corporation Solution Assessment
Francis Nicaragua
Keiser University
BUS510G3-107072025
Instructor Lisa Kramer
08/10/2025
Starbucks Corporation Solution Assessment
This analysis examines Starbucks Corporation and a specific problem that affects performance and growth: a decline in customer visits and engagement with the Starbucks Rewards program in key markets. Starbucks remains one of the largest global coffeehouse brands, yet recent quarters show pressure on traffic and loyalty that warrants structured analysis and targeted action. In late 2024, financial coverage reported falling visits and a need to restore the core experience, which frames the business case for intervention (PYMNTS, 2024). The company simultaneously positions Rewards as a critical lever for growth and experience innovation, underscoring the importance of diagnosing the current state and testing solution paths.
Company Problem and Context
The immediate problem centers on lower repeat visits and softening engagement among Rewards members, even as the program remains very large. Market analysts have noted that adding more discounts in the app did not reverse the trend, and they argue the program’s scale now exposes design flaws that may depress perceived value or relevance (Starbucks, 2025). Moreover, customers increasingly expect personalized value and exclusive experiences rather than generic offers, which raises the bar for program design across retail categories (Boston Consulting Group, 2024). Finally, the current terms of use include star expiration rules that can reduce perceived fairness if members do not redeem frequently, which suggests friction that may erode engagement among value-sensitive segments.
Stakeholders and Status Quo Map
The core problem owner is the Chief Marketing Officer, who is accountable for the Rewards strategy, brand equity, and customer lifetime value. However, the broader stakeholder network includes store managers, baristas, the technology and data teams, and the customer community that uses the app. The status quo diagram in Appendix A visualizes current flows among the CMO office, analytics and technology teams, the data platform, stores, customers, and pain points around engagement and perceived value. The Starbucks Rewards page and growth strategy announcements confirm that digital experience and membership are central to the brand agenda, so mapping the current state is a necessary precursor to solution testing (Tan, 2023).
Analytical Frame and Decision Approach
Because this problem spans people, process, technology, and value propositions, the analysis uses standard business analysis practices from the BABOK Guide to structure discovery, options analysis, and stakeholder evaluation. The BABOK knowledge areas support tasks such as stakeholder analysis, current state assessment, future state definition, and risk management, which align directly with this project’s needs (International Institute of Business Analysis, 2015). In addition, the analysis draws on peer-reviewed research about loyalty and gamified engagement so that solution design is grounded in evidence, not conjecture. For example, personalization and gamification can strengthen engagement and reduce switching, which is directly relevant to the crowded coffee category.
Alternative One: Personalized Rewards and Adaptive Offers
The first alternative deploys a personalization engine that uses first-party data to tailor rewards, challenges, and recommendations to each member’s purchase history and behavioral patterns. Research on loyalty programs demonstrates that tailored benefits meaningfully increase satisfaction and program value, which supports this direction for brands with rich data assets (Myftaraj & Trebicka, 2023). Further, recent empirical work shows that gamified elements tied to meaningful goals can drive sustained engagement when they satisfy utilitarian and experiential motives, and personalization makes those goals feel relevant (Zhang, 2025). In practice, the Starbucks team would classify members into dynamic segments and deliver adaptive offers, expiring boosts, and timely reminders before stars expire, which reduces the friction of the current terms. The diagram in Appendix B shows the flows among the CMO office, the personalization engine, the data platform, the privacy and compliance function, the app, and the store network.
Alternative Two: Partner Rewards and a Gamified Ecosystem
The second alternative expands value beyond coffee by creating a partner-enabled reward marketplace and community challenges that connect Starbucks visits to cross-brand perks. Strategy communications from the company have already highlighted partnerships as a growth lever, which indicates organizational readiness for this path if designed with clear value exchange and store friendliness (Tan, 2023). In parallel, recent work on tokenized or partner-backed rewards suggests that new reward forms can raise intention and retention when the benefits are easy to understand and redeem, strengthening the case for a curated marketplace and simple redemption ladders (Boukis, 2024). The diagram in Appendix C maps the flows among the CMO office, partner brands, a reward marketplace service, a social gamification layer, the app, and the store network, with special attention to operational simplicity at the counter.
Decision Criteria and Weights
A multi-criteria approach evaluates the two alternatives using criteria that reflect brand strategy, feasibility, and risk. The criteria are customer impact at 35 % weight, strategic fit at 15% weight, implementation feasibility at 15% weight, cost efficiency at 10% weight, time to value at 10% weight, privacy and compliance risk at 10% weight, and operational complexity at 5% weight. These criteria align with BABOK guidance on value assessment and risk analysis for future state options and are informed by external evidence on what drives loyalty adoption and engagement (IIBA, 2021). Moreover, the weights reflect Starbucks' communications about the centrality of customer experience and speed to deliver improvements at the store level. This keeps the evaluation tied to the brand’s stated priorities.
Scoring the Alternatives and Explaining the Results
Using a one to five scale, where higher is better, the analysis assigns each criterion a score for both alternatives and then multiplies by its weight to produce a total. Personalized rewards scores as follows: customer impact five, strategic fit five, feasibility four, cost efficiency three, time to value four, privacy and compliance three, and operational complexity three, for a weighted total of 4.25 out of five. By comparison, partner rewards receive: customer impact four, strategic fit four, feasibility three, cost efficiency four, time to value three, privacy and compliance two, and operational complexity three, for a weighted total of 3.50 out of five. Consequently, the personalized path leads because it creates immediate relevance with data that Starbucks already holds, whereas the partner path adds extra coordination and privacy complexity that can slow impact.
Evidence-Based Rationale for the Preferred Alternative
The personalized rewards alternative best addresses the engagement problem within a reasonable timeline and risk profile. Academic studies consistently show that tailored offers and gamified tasks increase perceived value and reduce switching, which fits a market where customers can easily choose local alternatives or other chains (Zhang, 2025). In addition, program critiques in the trade press suggest that simply increasing generic discounts does not fix the underlying issue, so more relevant and dynamic value is needed for members with many choices and high expectations (Starbucks, 2025). Finally, the company’s strategy statements emphasize digital features that help partners and stores run smoothly, which aligns with a solution that enhances the app but keeps the store experience simple for baristas and managers (Tan, 2023).
High-Level Implementation Roadmap for Personalized Rewards
The implementation begins with design and governance so that data use and privacy safeguards are explicit. The first six to eight weeks define the personalization objectives, the segmentation logic, the reward and challenge catalog, and the consent and opt-out flows, all in consultation with privacy and compliance. The next twelve to sixteen weeks will build and test the learning models, the in-app experience, and the operational playbook for store partners, followed by a three-city pilot with weekly measurement and improvement. Research indicates that gamification works best when goals are meaningful and feedback is timely, so the pilot should include clear micro goals, visible progress indicators, and easy redemption to translate intent into visits (Zhang, 2025). As the pilot scales, the team can add simple social features that allow members to accept friendly challenges or share progress, but only when store impact and privacy controls remain tight.
Risks, Mitigations, and Success Metrics
The main risks are data quality gaps, model bias, customer fatigue, and the possibility that added complexity slows barista routines. Therefore, the mitigation plan includes conservative model rollouts, frequent A and B tests, clear caps on message frequency, and a store partner feedback loop to surface friction quickly. Since star expiration can frustrate light users, the program should add pre-expiry reminders and limited-time rescue boosts that help members redeem with dignity, directly addressing a known friction point. Success metrics include increased active Rewards members, monthly actives to total member ratio, redemption rate, frequency per member, and a lift in same-store sales in pilot markets relative to matched controls. In addition, the company should track barista task time and satisfaction to ensure the store experience remains warm and efficient, which the brand has identified as central to its identity and future growth.
Conclusion
In conclusion, this analysis concludes that Starbucks should prioritize a personalized rewards and adaptive offers strategy to counter loyalty decline and stimulate repeat visits. The decision follows a structured evaluation grounded in BABOK practices and informed by research that links personalization and gamification to higher engagement and lower switching. Although a partner-enabled reward marketplace promises future waves, it likely delivers slower impact and introduces more operational and privacy complexity in the near term. By focusing on member relevance, store simplicity, and measurable learning, Starbucks can translate brand scale into daily value that feels personal and timely. Finally, the attached diagrams map the current state and the two solution paths so stakeholders can align quickly and proceed with disciplined execution.
**References**
Boukis, A. (2024). The effect of tokenized rewards on customer loyalty programs.
_Annals of Tourism Research_,
_109_, 103851.
[https://doi.org/10.1016/j.annals.2024.103851](https://doi.org/10.1016/j.annals.2024.103851)
International Institute of Business Analysis. (2021). A guide to the business analysis body of knowledge (BABOK Guide) (3rd ed.). IIBA.
Myftaraj, E., & Trebicka, B. (2023). Analyzing the impact of loyalty card programs on customer behavior: insights from the Albanian market.
_F1000Research_,
_12_, 1028.
[https://doi.org/10.12688/f1000research.138185.3](https://doi.org/10.12688/f1000research.138185.3)
PYMNTS. (2024).
_Starbucks plans to revive its strategy as customer visits decline_. PYMNTS.com.
[https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/](https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/)
Starbucks. (2025).
_Starbucks® rewards terms of use: Starbucks Coffee Company_. Starbucks Coffee Company.
[https://www.starbucks.com/rewards/terms/](https://www.starbucks.com/rewards/terms/)
Tan, T. (2023).
_What’s next? Starbucks unveils long-term growth strategy for a limitless future_. Starbucks Corporation.
[https://about.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-term-growth-strategy-for-a-limitless-future/](https://about.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-term-growth-strategy-for-a-limitless-future/)
Zhang, J., Zou, Y., Wang, S., & Xiang, Y. (2025). Consumer experience and perception in gamification marketing: evidence from the user survey of POPMART.
_Frontiers in Communication_,
_10_, 1388020.
[https://doi.org/10.3389/fcomm.2025.1388020](https://doi.org/10.3389/fcomm.2025.1388020)
**Appendices**
**Appendix A: Status Quo Diagram**
**Appendix B: Alternative One Diagram**
**Appendix C: Alternative Two Diagram**
## image1.png
## image2.png
## image3.png
**## Week7assignment.docx**
This assignment should reflect 2 weeks' worth of work. For this assignment, the business analyst tools Microsoft Excel, Survey Monkey, draw tools, decision trees, chart of KPIs, SWOT analysis, 10k annual reports, PADIO, and EQ will accompany your paper.
**Criteria:**
The final report on the Course Project will support the chapter learning from your BABOK® Guide, live class lectures, and in-class lessons. Incorporate all of the work from previous parts of your project into this final part. In addition, there will be several new sections to be written. This is your opportunity to let your critical thinking, analysis, and problem-solving observations shine. Your final paper will be a fully developed solution moving through the problem-solving tasks of planning, elicitation, analysis, requirements designing and developing, solution alternatives evaluation, implementation of the best solutions, and the operational stage of training, maintenance, and evaluation.
**Assignment Instructions:**
Must be 10-12 pages in length. Follow APA format for title page, citations, reference page, and appendix. APA headings should be used to delineate the required sections: Executive Summary, Enterprise Business and Industry Analysis
**## SelectionofCompanyandProblemweek11.docx**
2
**Business Analysis and Problem-Solving Strategy for Starbucks Corporation**
Francis Nicaragua
Keiser University
BUS510G3-107072025
July 12th 2025
**Business Analysis and Problem-Solving Strategy for Starbucks Corporation**
Introduction to the Company
Starbucks Corporation, ranked below the top 100 in the 2024 Fortune 500 list, is a globally recognized leader in the coffeehouse industry. Founded in 1971 in Seattle, Washington, Starbucks has grown into a multinational chain with over 35,000 stores worldwide (Starbucks, 2025). Its success stems from offering high-quality coffee, a unique customer experience, and an inviting ambiance. Despite its market dominance, Starbucks faces several operational and strategic challenges that require targeted business analysis and innovative solutions to maintain its competitive edge.
Company History and Market Position
Starbucks began as a single store selling roasted coffee beans and equipment. Under the leadership of Howard Schultz in the 1980s, the company transformed into a café-style coffee chain inspired by Italian espresso bars. Its mission, “To be the premier purveyor of the finest coffee in the world, inspiring and nurturing the human spirit—one person, one cup, and one neighborhood at a time”, has helped shape its brand identity (Starbucks, 2025). Over the decades, Starbucks has diversified its offerings, incorporated technology like mobile ordering, and expanded into global markets. However, recent issues such as declining customer loyalty, increasing operational costs, and growing competition have challenged its market position.
Identified Problem
A critical problem Starbucks faces today is declining customer loyalty in specific key markets, particularly in North America. Despite its loyalty program, Starbucks Rewards, there has been a noticeable drop in user engagement and repeat visits (PYMNTS, 2024). This is partially attributed to rising product prices, inconsistent service quality, and growing competition from local coffee shops and other chains offering more customized and affordable alternatives. In an era of digital transformation and personalized experiences, Starbucks must rethink how it maintains and increases its customer base.
Problem Owner and Stakeholders
The primary problem owner is Starbucks’ Chief Marketing Officer (CMO), responsible for customer engagement strategies and brand loyalty initiatives. Secondary stakeholders include store managers, baristas, the technology and customer experience teams, and the loyal customer base. Shareholders and business analysts also have a stake, as customer loyalty directly impacts revenue and long-term growth.
Application of Business Analysis Approach
I will apply a structured business analysis approach outlined in Chapter 1 of the BABOK® Guide and the PADIO model (Problem, Analysis, Design, Implementation, Operation) to address this challenge. This framework comprehensively solves organizational problems by leveraging data, stakeholder input, and decision-making tools. The following section describes the five stages of this approach and how they apply to the identified problem.
Planning Stage
The planning stage involves setting objectives, defining scope, and determining resource requirements. The goal is to improve the Starbucks Rewards program to re-engage customers and enhance retention. Key planning tasks will include assigning a cross-functional team of marketers, data analysts, and IT specialists and setting a six-month timeline for the project (Khandelwal & Kapoor, 2025). During this stage, I will establish key performance indicators (KPIs) such as app engagement rates, number of active rewards members, and customer satisfaction scores.
Analysis Stage
In the analysis stage, I will collect and evaluate relevant data to understand the root causes of loyalty decline. This includes customer surveys, mobile app usage analytics, and competitive benchmarking. According to Liu et al. (2021), organizations that regularly assess customer behavior through digital channels are more likely to implement successful engagement strategies. By segmenting the customer base, I will identify trends among disengaged users, such as age group preferences, reward dissatisfaction, or pricing sensitivity. Additionally, competitor analysis will reveal which loyalty features attract customers elsewhere, such as tiered rewards, gamification, or partnerships.
Design and Development of Alternative Solutions
After analyzing the problem, I will design three alternative strategies to revitalize customer loyalty: introducing personalized rewards based on purchase history, integrating a social gamification element to encourage peer interaction, and forming partnerships with complementary brands to offer diverse reward options. Each solution will be assessed for feasibility, alignment with Starbucks’ brand, and estimated ROI. The team will prioritize the solution that balances customer appeal with operational scalability by drawing from BABOK’s techniques, such as SWOT analysis and stakeholder impact analysis.
Implementation Stage
After choosing the desired solution, they will proceed with the programming, testing, and implementation. To illustrate, in the case of Starbucks introducing personalized rewards, the implementation activities will involve updating the application, combining it with the backend, educating its workers, and advertising the new functionality. A pilot study will be conducted in a few metropolitan areas for a three-month trial. To manage this stage, best practices in project management will be used to ensure that the tasks can be done on time and within the budget. Designing features and fixing bugs can happen more frequently because of the feedback loop and agile development means of improvement, before massive implementation occurs.
Operational Stage: Maintenance, Training, and Evaluation
The next phase will be the implementation stage once the project has been rolled out. Maintenance work involves overseeing the performance of the systems, rectifying bugs, and tweaking rewards depending on customer feedback. Baristas and store managers will receive constant training, the purpose of which will be to help customers navigate the applications and redeem rewards. Finally, analysis will be carried out through an extensive review of the program's effects on the loyalty figures. Post-implementation reviews play an important role in measuring the value of a business and how it can be optimized later (IIBA, 2021).
To sum it up, Starbucks will have to deal with the problem of low customer loyalty using systematic approaches to business analysis. The company can identify the underlying reasons, devise new ideas, and introduce customer-related enhancements in its loyalty program by introducing the PADIO model and BABOK principles. With careful planning, data analysis, investigation of options, and a careful implementation and operations strategy, Starbucks can renew customer interest and reinstate its position in the market. Business analysis allows us to approach such a dilemma and sets the platform for long-term strategic success.
**References**
International Institute of Business Analysis. (2021). A guide to the business analysis body of knowledge (BABOK Guide) (3rd ed.). IIBA.
Khandelwal, R., & Kapoor, D. (2025). Gamification Strategies for Enhancing Customer Engagement and Loyalty. In
_Addressing Practical Problems Through the Metaverse and Game-Inspired Mechanics_ (pp. 97–122). IGI Global Scientific Publishing.
Liu, Y., Liu, X., Wang, M., & Wen, D. (2021). How to catch customers’ attention? A study on the effectiveness of brand social media strategies in digital customer engagement.
_Frontiers in Psychology_,
_12_, 800766.
[https://doi.org/10.3389/fpsyg.2021.800766](https://doi.org/10.3389/fpsyg.2021.800766)
PYMNTS. (2024).
_Starbucks plans to revive its strategy as customer visits decline_. PYMNTS.com.
[https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/](https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/)
Starbucks. (2025).
_About Starbucks_.
[https://about.starbucks.com/mission/](https://about.starbucks.com/mission/)
**Appendix**
## image1.png
**## Week5AssignmentF.Nicaragua.docx**
2
Starbucks Corporation Solution Assessment
Francis Nicaragua
Keiser University
BUS510G3-107072025
Instructor Lisa Kramer
08/10/2025
Starbucks Corporation Solution Assessment
This analysis examines Starbucks Corporation and a specific problem that affects performance and growth: a decline in customer visits and engagement with the Starbucks Rewards program in key markets. Starbucks remains one of the largest global coffeehouse brands, yet recent quarters show pressure on traffic and loyalty that warrants structured analysis and targeted action. In late 2024, financial coverage reported falling visits and a need to restore the core experience, which frames the business case for intervention (PYMNTS, 2024). The company simultaneously positions Rewards as a critical lever for growth and experience innovation, underscoring the importance of diagnosing the current state and testing solution paths.
Company Problem and Context
The immediate problem centers on lower repeat visits and softening engagement among Rewards members, even as the program remains very large. Market analysts have noted that adding more discounts in the app did not reverse the trend, and they argue the program’s scale now exposes design flaws that may depress perceived value or relevance (Starbucks, 2025). Moreover, customers increasingly expect personalized value and exclusive experiences rather than generic offers, which raises the bar for program design across retail categories (Boston Consulting Group, 2024). Finally, the current terms of use include star expiration rules that can reduce perceived fairness if members do not redeem frequently, which suggests friction that may erode engagement among value-sensitive segments.
Stakeholders and Status Quo Map
The core problem owner is the Chief Marketing Officer, who is accountable for the Rewards strategy, brand equity, and customer lifetime value. However, the broader stakeholder network includes store managers, baristas, the technology and data teams, and the customer community that uses the app. The status quo diagram in Appendix A visualizes current flows among the CMO office, analytics and technology teams, the data platform, stores, customers, and pain points around engagement and perceived value. The Starbucks Rewards page and growth strategy announcements confirm that digital experience and membership are central to the brand agenda, so mapping the current state is a necessary precursor to solution testing (Tan, 2023).
Analytical Frame and Decision Approach
Because this problem spans people, process, technology, and value propositions, the analysis uses standard business analysis practices from the BABOK Guide to structure discovery, options analysis, and stakeholder evaluation. The BABOK knowledge areas support tasks such as stakeholder analysis, current state assessment, future state definition, and risk management, which align directly with this project’s needs (International Institute of Business Analysis, 2015). In addition, the analysis draws on peer-reviewed research about loyalty and gamified engagement so that solution design is grounded in evidence, not conjecture. For example, personalization and gamification can strengthen engagement and reduce switching, which is directly relevant to the crowded coffee category.
Alternative One: Personalized Rewards and Adaptive Offers
The first alternative deploys a personalization engine that uses first-party data to tailor rewards, challenges, and recommendations to each member’s purchase history and behavioral patterns. Research on loyalty programs demonstrates that tailored benefits meaningfully increase satisfaction and program value, which supports this direction for brands with rich data assets (Myftaraj & Trebicka, 2023). Further, recent empirical work shows that gamified elements tied to meaningful goals can drive sustained engagement when they satisfy utilitarian and experiential motives, and personalization makes those goals feel relevant (Zhang, 2025). In practice, the Starbucks team would classify members into dynamic segments and deliver adaptive offers, expiring boosts, and timely reminders before stars expire, which reduces the friction of the current terms. The diagram in Appendix B shows the flows among the CMO office, the personalization engine, the data platform, the privacy and compliance function, the app, and the store network.
Alternative Two: Partner Rewards and a Gamified Ecosystem
The second alternative expands value beyond coffee by creating a partner-enabled reward marketplace and community challenges that connect Starbucks visits to cross-brand perks. Strategy communications from the company have already highlighted partnerships as a growth lever, which indicates organizational readiness for this path if designed with clear value exchange and store friendliness (Tan, 2023). In parallel, recent work on tokenized or partner-backed rewards suggests that new reward forms can raise intention and retention when the benefits are easy to understand and redeem, strengthening the case for a curated marketplace and simple redemption ladders (Boukis, 2024). The diagram in Appendix C maps the flows among the CMO office, partner brands, a reward marketplace service, a social gamification layer, the app, and the store network, with special attention to operational simplicity at the counter.
Decision Criteria and Weights
A multi-criteria approach evaluates the two alternatives using criteria that reflect brand strategy, feasibility, and risk. The criteria are customer impact at 35 % weight, strategic fit at 15% weight, implementation feasibility at 15% weight, cost efficiency at 10% weight, time to value at 10% weight, privacy and compliance risk at 10% weight, and operational complexity at 5% weight. These criteria align with BABOK guidance on value assessment and risk analysis for future state options and are informed by external evidence on what drives loyalty adoption and engagement (IIBA, 2021). Moreover, the weights reflect Starbucks' communications about the centrality of customer experience and speed to deliver improvements at the store level. This keeps the evaluation tied to the brand’s stated priorities.
Scoring the Alternatives and Explaining the Results
Using a one to five scale, where higher is better, the analysis assigns each criterion a score for both alternatives and then multiplies by its weight to produce a total. Personalized rewards scores as follows: customer impact five, strategic fit five, feasibility four, cost efficiency three, time to value four, privacy and compliance three, and operational complexity three, for a weighted total of 4.25 out of five. By comparison, partner rewards receive: customer impact four, strategic fit four, feasibility three, cost efficiency four, time to value three, privacy and compliance two, and operational complexity three, for a weighted total of 3.50 out of five. Consequently, the personalized path leads because it creates immediate relevance with data that Starbucks already holds, whereas the partner path adds extra coordination and privacy complexity that can slow impact.
Evidence-Based Rationale for the Preferred Alternative
The personalized rewards alternative best addresses the engagement problem within a reasonable timeline and risk profile. Academic studies consistently show that tailored offers and gamified tasks increase perceived value and reduce switching, which fits a market where customers can easily choose local alternatives or other chains (Zhang, 2025). In addition, program critiques in the trade press suggest that simply increasing generic discounts does not fix the underlying issue, so more relevant and dynamic value is needed for members with many choices and high expectations (Starbucks, 2025). Finally, the company’s strategy statements emphasize digital features that help partners and stores run smoothly, which aligns with a solution that enhances the app but keeps the store experience simple for baristas and managers (Tan, 2023).
High-Level Implementation Roadmap for Personalized Rewards
The implementation begins with design and governance so that data use and privacy safeguards are explicit. The first six to eight weeks define the personalization objectives, the segmentation logic, the reward and challenge catalog, and the consent and opt-out flows, all in consultation with privacy and compliance. The next twelve to sixteen weeks will build and test the learning models, the in-app experience, and the operational playbook for store partners, followed by a three-city pilot with weekly measurement and improvement. Research indicates that gamification works best when goals are meaningful and feedback is timely, so the pilot should include clear micro goals, visible progress indicators, and easy redemption to translate intent into visits (Zhang, 2025). As the pilot scales, the team can add simple social features that allow members to accept friendly challenges or share progress, but only when store impact and privacy controls remain tight.
Risks, Mitigations, and Success Metrics
The main risks are data quality gaps, model bias, customer fatigue, and the possibility that added complexity slows barista routines. Therefore, the mitigation plan includes conservative model rollouts, frequent A and B tests, clear caps on message frequency, and a store partner feedback loop to surface friction quickly. Since star expiration can frustrate light users, the program should add pre-expiry reminders and limited-time rescue boosts that help members redeem with dignity, directly addressing a known friction point. Success metrics include increased active Rewards members, monthly actives to total member ratio, redemption rate, frequency per member, and a lift in same-store sales in pilot markets relative to matched controls. In addition, the company should track barista task time and satisfaction to ensure the store experience remains warm and efficient, which the brand has identified as central to its identity and future growth.
Conclusion
In conclusion, this analysis concludes that Starbucks should prioritize a personalized rewards and adaptive offers strategy to counter loyalty decline and stimulate repeat visits. The decision follows a structured evaluation grounded in BABOK practices and informed by research that links personalization and gamification to higher engagement and lower switching. Although a partner-enabled reward marketplace promises future waves, it likely delivers slower impact and introduces more operational and privacy complexity in the near term. By focusing on member relevance, store simplicity, and measurable learning, Starbucks can translate brand scale into daily value that feels personal and timely. Finally, the attached diagrams map the current state and the two solution paths so stakeholders can align quickly and proceed with disciplined execution.
**References**
Boukis, A. (2024). The effect of tokenized rewards on customer loyalty programs.
_Annals of Tourism Research_,
_109_, 103851.
[https://doi.org/10.1016/j.annals.2024.103851](https://doi.org/10.1016/j.annals.2024.103851)
International Institute of Business Analysis. (2021). A guide to the business analysis body of knowledge (BABOK Guide) (3rd ed.). IIBA.
Myftaraj, E., & Trebicka, B. (2023). Analyzing the impact of loyalty card programs on customer behavior: insights from the Albanian market.
_F1000Research_,
_12_, 1028.
[https://doi.org/10.12688/f1000research.138185.3](https://doi.org/10.12688/f1000research.138185.3)
PYMNTS. (2024).
_Starbucks plans to revive its strategy as customer visits decline_. PYMNTS.com.
[https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/](https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/)
Starbucks. (2025).
_Starbucks® rewards terms of use: Starbucks Coffee Company_. Starbucks Coffee Company.
[https://www.starbucks.com/rewards/terms/](https://www.starbucks.com/rewards/terms/)
Tan, T. (2023).
_What’s next? Starbucks unveils long-term growth strategy for a limitless future_. Starbucks Corporation.
[https://about.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-term-growth-strategy-for-a-limitless-future/](https://about.starbucks.com/stories/2023/whats-next-starbucks-unveils-long-term-growth-strategy-for-a-limitless-future/)
Zhang, J., Zou, Y., Wang, S., & Xiang, Y. (2025). Consumer experience and perception in gamification marketing: evidence from the user survey of POPMART.
_Frontiers in Communication_,
_10_, 1388020.
[https://doi.org/10.3389/fcomm.2025.1388020](https://doi.org/10.3389/fcomm.2025.1388020)
**Appendices**
**Appendix A: Status Quo Diagram**
**Appendix B: Alternative One Diagram**
**Appendix C: Alternative Two Diagram**
## image1.png
## image2.png
## image3.png
**## Week7assignment.docx**
This assignment should reflect 2 weeks' worth of work. For this assignment, the business analyst tools Microsoft Excel, Survey Monkey, draw tools, decision trees, chart of KPIs, SWOT analysis, 10k annual reports, PADIO, and EQ will accompany your paper.
**Criteria:**
The final report on the Course Project will support the chapter learning from your BABOK® Guide, live class lectures, and in-class lessons. Incorporate all of the work from previous parts of your project into this final part. In addition, there will be several new sections to be written. This is your opportunity to let your critical thinking, analysis, and problem-solving observations shine. Your final paper will be a fully developed solution moving through the problem-solving tasks of planning, elicitation, analysis, requirements designing and developing, solution alternatives evaluation, implementation of the best solutions, and the operational stage of training, maintenance, and evaluation.
**Assignment Instructions:**
Must be 10-12 pages in length. Follow APA format for title page, citations, reference page, and appendix. APA headings should be used to delineate the required sections: Executive Summary, Enterprise Business and Industry Analysis
**## SelectionofCompanyandProblemweek11.docx**
2
**Business Analysis and Problem-Solving Strategy for Starbucks Corporation**
Francis Nicaragua
Keiser University
BUS510G3-107072025
July 12th 2025
**Business Analysis and Problem-Solving Strategy for Starbucks Corporation**
Introduction to the Company
Starbucks Corporation, ranked below the top 100 in the 2024 Fortune 500 list, is a globally recognized leader in the coffeehouse industry. Founded in 1971 in Seattle, Washington, Starbucks has grown into a multinational chain with over 35,000 stores worldwide (Starbucks, 2025). Its success stems from offering high-quality coffee, a unique customer experience, and an inviting ambiance. Despite its market dominance, Starbucks faces several operational and strategic challenges that require targeted business analysis and innovative solutions to maintain its competitive edge.
Company History and Market Position
Starbucks began as a single store selling roasted coffee beans and equipment. Under the leadership of Howard Schultz in the 1980s, the company transformed into a café-style coffee chain inspired by Italian espresso bars. Its mission, “To be the premier purveyor of the finest coffee in the world, inspiring and nurturing the human spirit—one person, one cup, and one neighborhood at a time”, has helped shape its brand identity (Starbucks, 2025). Over the decades, Starbucks has diversified its offerings, incorporated technology like mobile ordering, and expanded into global markets. However, recent issues such as declining customer loyalty, increasing operational costs, and growing competition have challenged its market position.
Identified Problem
A critical problem Starbucks faces today is declining customer loyalty in specific key markets, particularly in North America. Despite its loyalty program, Starbucks Rewards, there has been a noticeable drop in user engagement and repeat visits (PYMNTS, 2024). This is partially attributed to rising product prices, inconsistent service quality, and growing competition from local coffee shops and other chains offering more customized and affordable alternatives. In an era of digital transformation and personalized experiences, Starbucks must rethink how it maintains and increases its customer base.
Problem Owner and Stakeholders
The primary problem owner is Starbucks’ Chief Marketing Officer (CMO), responsible for customer engagement strategies and brand loyalty initiatives. Secondary stakeholders include store managers, baristas, the technology and customer experience teams, and the loyal customer base. Shareholders and business analysts also have a stake, as customer loyalty directly impacts revenue and long-term growth.
Application of Business Analysis Approach
I will apply a structured business analysis approach outlined in Chapter 1 of the BABOK® Guide and the PADIO model (Problem, Analysis, Design, Implementation, Operation) to address this challenge. This framework comprehensively solves organizational problems by leveraging data, stakeholder input, and decision-making tools. The following section describes the five stages of this approach and how they apply to the identified problem.
Planning Stage
The planning stage involves setting objectives, defining scope, and determining resource requirements. The goal is to improve the Starbucks Rewards program to re-engage customers and enhance retention. Key planning tasks will include assigning a cross-functional team of marketers, data analysts, and IT specialists and setting a six-month timeline for the project (Khandelwal & Kapoor, 2025). During this stage, I will establish key performance indicators (KPIs) such as app engagement rates, number of active rewards members, and customer satisfaction scores.
Analysis Stage
In the analysis stage, I will collect and evaluate relevant data to understand the root causes of loyalty decline. This includes customer surveys, mobile app usage analytics, and competitive benchmarking. According to Liu et al. (2021), organizations that regularly assess customer behavior through digital channels are more likely to implement successful engagement strategies. By segmenting the customer base, I will identify trends among disengaged users, such as age group preferences, reward dissatisfaction, or pricing sensitivity. Additionally, competitor analysis will reveal which loyalty features attract customers elsewhere, such as tiered rewards, gamification, or partnerships.
Design and Development of Alternative Solutions
After analyzing the problem, I will design three alternative strategies to revitalize customer loyalty: introducing personalized rewards based on purchase history, integrating a social gamification element to encourage peer interaction, and forming partnerships with complementary brands to offer diverse reward options. Each solution will be assessed for feasibility, alignment with Starbucks’ brand, and estimated ROI. The team will prioritize the solution that balances customer appeal with operational scalability by drawing from BABOK’s techniques, such as SWOT analysis and stakeholder impact analysis.
Implementation Stage
After choosing the desired solution, they will proceed with the programming, testing, and implementation. To illustrate, in the case of Starbucks introducing personalized rewards, the implementation activities will involve updating the application, combining it with the backend, educating its workers, and advertising the new functionality. A pilot study will be conducted in a few metropolitan areas for a three-month trial. To manage this stage, best practices in project management will be used to ensure that the tasks can be done on time and within the budget. Designing features and fixing bugs can happen more frequently because of the feedback loop and agile development means of improvement, before massive implementation occurs.
Operational Stage: Maintenance, Training, and Evaluation
The next phase will be the implementation stage once the project has been rolled out. Maintenance work involves overseeing the performance of the systems, rectifying bugs, and tweaking rewards depending on customer feedback. Baristas and store managers will receive constant training, the purpose of which will be to help customers navigate the applications and redeem rewards. Finally, analysis will be carried out through an extensive review of the program's effects on the loyalty figures. Post-implementation reviews play an important role in measuring the value of a business and how it can be optimized later (IIBA, 2021).
To sum it up, Starbucks will have to deal with the problem of low customer loyalty using systematic approaches to business analysis. The company can identify the underlying reasons, devise new ideas, and introduce customer-related enhancements in its loyalty program by introducing the PADIO model and BABOK principles. With careful planning, data analysis, investigation of options, and a careful implementation and operations strategy, Starbucks can renew customer interest and reinstate its position in the market. Business analysis allows us to approach such a dilemma and sets the platform for long-term strategic success.
**References**
International Institute of Business Analysis. (2021). A guide to the business analysis body of knowledge (BABOK Guide) (3rd ed.). IIBA.
Khandelwal, R., & Kapoor, D. (2025). Gamification Strategies for Enhancing Customer Engagement and Loyalty. In
_Addressing Practical Problems Through the Metaverse and Game-Inspired Mechanics_ (pp. 97–122). IGI Global Scientific Publishing.
Liu, Y., Liu, X., Wang, M., & Wen, D. (2021). How to catch customers’ attention? A study on the effectiveness of brand social media strategies in digital customer engagement.
_Frontiers in Psychology_,
_12_, 800766.
[https://doi.org/10.3389/fpsyg.2021.800766](https://doi.org/10.3389/fpsyg.2021.800766)
PYMNTS. (2024).
_Starbucks plans to revive its strategy as customer visits decline_. PYMNTS.com.
[https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/](https://www.pymnts.com/earnings/2024/starbucks-plans-revival-strategy-as-customer-visits-decline-and-sales-struggle/)
Starbucks. (2025).
_About Starbucks_.
[https://about.starbucks.com/mission/](https://about.starbucks.com/mission/)
**Appendix**
## image1.png
**## Week5AssignmentF.Nicaragua.docx**
2
Starbucks Corporation Solution Assessment
Francis Nicaragua
Keiser University
BUS510G3-107072025
Instructor Lisa Kramer
08/10/2025
Starbucks Corporation Solution Assessment
This analysis examines Starbucks Corporation and a specific problem that affects performance and growth: a decline in customer visits and engagement with the Starbucks Rewards program in key markets. Starbucks remains one of the largest global coffeehouse brands, yet recent quarters show pressure on traffic and loyalty that warrants structured analysis and targeted action. In late 2024, financial coverage reported falling visits and a need to restore the core experience, which frames the business case for intervention (PYMNTS, 2024). The company simultaneously positions Rewards as a critical lever for growth and experience innovation, underscoring the importance of diagnosing the current state and testing solution paths.
Company Problem and Context
The immediate problem centers on lower repeat visits and softening engagement among Rewards members, even as the program remains very large. Market analysts have noted that adding more discounts in the app did not reverse the trend, and they argue the program’s scale now exposes design flaws that may depress perceived value or relevance (Starbucks, 2025). Moreover, customers increasingly expect personalized value and exclusive experiences rather than generic offers, which raises the bar for program design across retail categories (Boston Consulting Group, 2024). Finally, the current terms of use include star expiration rules that can reduce perceived fairness if members do not redeem frequently, which suggests friction that may erode engagement among value-sensitive segments.
Stakeholders and Status Quo Map
The core problem owner is the Chief Marketing Officer, who is accountable for the Rewards strategy, brand equity, and customer lifetime value. However, the broader stakeholder network includes store managers, baristas, the technology and data teams, and the customer community that uses the app. The status quo diagram in Appendix A visualizes current flows among the CMO office, analytics and technology teams, the data platform, stores, customers, and pain points around engagement and perceived value. The Starbucks Rewards page and growth strategy announcements confirm that digital experience and membership are central to the brand agenda, so mapping the current state is a necessary precursor to solution testing (Tan, 2023).
Analytical Frame and Decision Approach
Because this problem spans people, process, technology, and value propositions, the analysis uses standard business analysis practices from the BABOK Guide to structure discovery, options analysis, and stakeholder evaluation. The BABOK knowledge areas support tasks such as stakeholder analysis, current state assessment, future state definition, and risk management, which align directly with this project’s needs (International Institute of Business Analysis, 2015). In addition, the analysis draws on peer-reviewed research about loyalty and gamified engagement so that solution design is grounded in evidence, not conjecture. For example, personalization and gamification can strengthen engagement and reduce switching, which is directly relevant to the crowded coffee category.
Alternative One: Personalized Rewards and Adaptive Offers
The first alternative deploys a personalization engine that uses first-party data to tailor rewards, challenges, and recommendations to each member’s purchase history and behavioral patterns. Research on loyalty programs demonstrates that tailored benefits meaningfully increase satisfaction and program value, which supports this direction for brands with rich data assets (Myftaraj & Trebicka, 2023). Further, recent empirical work shows that gamified elements tied to meaningful goals can drive sustained engagement when they satisfy utilitarian and experiential motives, and personalization makes those goals feel relevant (Zhang, 2025). In practice, the Starbucks team would classify members into dynamic segments and deliver adaptive offers, expiring boosts, and timely reminders before stars expire, which reduces the friction of the current terms. The diagram in Appendix B shows the flows among the CMO office, the personalization engine, the data platform, the privacy and compliance function, the app, and the store network.
Alternative Two: Partner Rewards and a Gamified Ecosystem
The second alternative expands value beyond coffee by creating a partner-enabled reward marketplace and community challenges that connect Starbucks visits to cross-brand perks. Strategy communications from the company have already highlighted partnerships as a growth lever, which indicates organizational readiness for this path if designed with clear value exchange and store friendliness (Tan, 2023). In parallel, recent work on tokenized or partner-backed rewards suggests that new reward forms can raise intention and retention when the benefits are easy to understand and redeem, strengthening the case for a curated marketplace and simple redemption ladders (Boukis, 2024). The diagram in Appendix C maps the flows among the CMO office, partner brands, a reward marketplace service, a social gamification layer, the app, and the store network, with special attention to operational simplicity at the counter.
Decision Criteria and Weights
A multi-criteria approach evaluates the two alternatives using criteria that reflect brand strategy, feasibility, and risk. The criteria are customer impact at 35 % weight, strategic fit at 15% weight, implementation feasibility at 15% weight, cost efficiency at 10% weight, time to value at 10% weight, privacy and compliance risk at 10% weight, and operational complexity at 5% weight. These criteria align with BABOK guidance on value assessment and risk analysis for future state options and are informed by external evidence on what drives loyalty adoption and engagement (IIBA, 2021). Moreover, the weights reflect Starbucks' communications about the centrality of customer experience and speed to deliver improvements at the store level. This keeps the evaluation tied to the brand’s stated priorities.
Scoring the Alternatives and Explaining the Results
Using a one to five scale, where higher is better, the analysis assigns each criterion a score for both alternatives and then multiplies by its weight to produce a total. Personalized rewards scores as follows: customer impact five, strategic fit five, feasibility four, cost efficiency three, time to value four, privacy and compliance three, and operational complexity three, for a weighted total of 4.25 out of five. By comparison, partner rewards receive: customer impact four, strategic fit four, feasibility three, cost efficiency four, time to value three, privacy and compliance two, and operational complexity three, for a weighted total of 3.50 out of five. Consequently, the personalized path leads because it creates immediate relevance with data that Starbucks already holds, whereas the partner path adds extra coordination and privacy complexity that can slow impact.
Evidence-Based Rationale for the Preferred Alternative
The personalized rewards alternative best addresses the engagement problem within a reasonable timeline and risk profile. Academic studies consistently show that tailored offers and gamified tasks increase perceived value and reduce switching, which fits a market where customers can easily choose local alternatives or other chains (Zhang, 2025). In addition, program critiques in the trade press suggest that simply increasing generic discounts does not fix the underlying issue, so more relevant and dynamic value is needed for members with many choices and high expectations (Starbucks, 2025). Finally, the company’s strategy statements emphasize digital features that help partners and stores run smoothly, which aligns with a solution that enhances the app but keeps the store experience simple for baristas and managers (Tan, 2023).
High-Level Implementation Roadmap for Personalized Rewards
The implementation begins with design and governance so that data use and privacy safeguards are explicit. The first six to eight weeks define the personalization objectives, the segmentation logic, the reward and challenge catalog, and the consent and opt-out flows, all in consultation with privacy and compliance. The next twelve to sixteen weeks will build and test the learning models, the in-app experience, and the operational playbook for store partners, followed by a three-city pilot with weekly measurement and improvement. Research indicates that gamification works best when goals are meaningful and feedback is timely, so the pilot should include clear micro goals, visible progress indicators, and easy redemption to translate intent into visits (Zhang, 2025). As the pilot scales, the team can add simple social features that allow members to accept friendly challenges or share progress, but only when store impact and privacy controls remain tight.
Risks, Mitigations, and Success Metrics
The main risks are data quality gaps, model bias, customer fatigue, and the possibility that added complexity slows barista routines. Therefore, the mitigation plan includes conservative model rollouts, frequent A and B tests, clear caps on message frequency, and a store partner feedback loop to surface friction quickly. Since star expiration can frustrate light users, the program should add pre-expiry reminders and limited-time rescue boosts that help members redeem with dignity, directly addressing a known friction point. Success metrics include increased active Rewards members, monthly actives to total member ratio, redemption rate, frequency per member, and a lift in same-store sales in pilot markets relative to matched controls. In addition, the company should track barista task time and satisfaction to ensure the store experience remains warm and efficient, which the brand has identified as central to its identity and future growth.
Conclusion
In conclusion, this analysis concludes that Starbucks should prioritize a personalized rewards and adaptive offers strategy to counter loyalty decline and stimulate repeat visits. The decision follows a structured evaluation grounded in BABOK practices and informed by research that links personalization and gamification to higher engagement and lower switching. Although a partner-enabled reward marketplace promises future waves, it likely delivers slower impact and introduces more operational and privacy complexity in the near term. By focusing on member relevance, store simplicity, and measurable learning, Starbucks can translate brand scale into daily value that feels personal and timely. Finally, the attached diagrams map the current state and the two solution paths so stakeholders can align quickly and proceed with disciplined execution.
**References**
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**Appendices**
**Appendix A: Status Quo Diagram**
**Appendix B: Alternative One Diagram**
**Appendix C: Alternative Two Diagram**
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