Behavioral Science Behind the Starbucks App

I’m not a huge coffee drinker, but I enjoy a white chocolate mocha from Starbucks every once in a while. Even more than the coffee, I enjoy the experience of using their app. Not only is it easy to use, but the behavioral science principles behind it are brilliant.

How it Works

Like most food apps, you can view the menu and order from the app, allowing you to skip the line when you get there. However, you don’t pay directly by credit card. Instead, you pay by adding money to a virtual gift card stored on your phone. This is where the genius begins.

Pain of Paying

Behavioral science tells us that we actually feel pain when parting with our money. Cash is the hardest to part with, credit cards are a little easier, and gift cards are easier yet. Starbucks never charges your credit card directly for an order; it comes off your gift card.

When you add money to the gift card, it doesn’t feel like you’re losing anything immediately. And when you use the gift card, it feels like the money was already spent and just “sitting there.” Starbucks has effectively removed the pain of parting with your money.

Sunk Cost

This ties into the sunk cost fallacy. When money is preloaded, we feel obligated to use it, even if it leads to buying items we wouldn’t normally choose. For instance, if you have $7 left on the card, you might add a breakfast sandwich to your coffee order instead of letting a small balance go unused.

This clever use of behavioral science makes every interaction with Starbucks effortless. I wish more companies would leverage these principles to enhance the customer experience.