Starbucks head says Wi-Fi helped sales: No quantitative analysis, but a strong statement.
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Starbucks head says Wi-Fi helped sales: No quantitative analysis, but a strong statement.
I can add to the anaecdotal evidence. I was in London last week, wandering Soho (which has about 10,000,000 cafes that are MUCH better than Starbucks), and yet I ended up at Fourbucks, because I needed the connectivity.
My corner cafe in San Francisco has closed down for remodelling, depriving me of breakfast-with-WiFi, and I've been wandering the Mission all week looking for another cafe where I can get both.
In an article published on the web site edinburgh news.com, "Brewing up 10% sales rise", the head of Starbucks is paraphrased, "Chairman Howard Schultz said a deal with T-Mobile to provide wireless internet access at Starbucks’ North American shops is helping keep customers in stores longer." (This might be hindering sales by tying up table space.)
Correlation of the use of Wi-Fi to increased sales can only be inferred by the reader, proof of causality is absent.
How is this a strong statement about Wi-Fi? Where do you see the "broadening of use" phenomenon being attributed to those using Wi-Fi?
Is this another example of a press release being used as a "news" item. DH
I was at a Wireless Forum at UCLA two months ago. Lots of big institutional investors and VCs sat on a panel about WiFi business models and proposals. None of them see pay-as-you-go WiFi plans as a viable revenue stream.
Certainly can be a loss leader that makes users want to subscribe to an overall telecom package (cell phone, wifi, SMS, all on one bill).
And why pay when you can stumble for an open Acess Point?
The key to success of any new network, whether the internet or the Interstate Highway System, is the ability to serve multiple markets from the same basic investment. Even though hotspots appear to be a very inefficient way to build a network, Starbucks does offer a consistent, worldwide (nearly) set of locations. Their success, however, does not substitute for the need for a true interconnected network -- always on and available in the large majority of our dialy activities. Without this, WiFi will merely provide a great service to nerds -- who also like coffee.