With or without Chase’s Starbucks card, loyalty members love the stars and points offered in the latest overhaul of a successful 10-year-old program, according to trade journal Nation’s Restaurant News. With Chase’s program, it makes a strong merchant offering even better. It is hard to argue with the numbers.
- The increasing number of Starbucks Reward program members has been a marker of growth for the brand.
- By the end of the fourth quarter ended Dec. 30, membership had increased 14% to 16 million active members, and Starbucks Rewards accounted for 40% of total U.S. store transactions, alongside same-store sales growth of 4%.
Starbucks Rewards
Total U.S. store transactions
40%
The program is a nice blend of retailer-driven rewards, with an enhancement when the Chase card is tendered. Something that Starbucks does every three or so years is to look deeply at the program to ensure relevance, then adapt to current trends.
- Starbucks announced an upgrade to its Starbucks Rewards loyalty program Tuesday, introducing a suite of enhancements that include options for customized rewards, a tiered structure, and opportunities to earn freebies faster.
- Starting April 16, new program members will be able to start earning stars immediately after joining, allowing customers to start cashing in their rewards, on average, after two to three visits.
- In addition to the new tiered structure, stars earned by Starbucks Rewards Visa credit card and prepaid card holders will no longer expire. Besides these new enhancements, the basic structure of the Starbucks Rewards system — which was first introduced in 2009 — will remain the same, and Starbucks members will still earn two stars for every dollar spent in stores, in addition to free refills and free birthday drinks.
Here’s a nice example of coordinating the merchant program with the credit card issuing partner. At Chase,
- Earn up to 3 Stars per $1 spent at Starbucks® stores
- Earn 1 Star per $2 you spend at grocery stores, on local transit and commuting, and on internet, cable, and phone services
- Earn 1 Star per $4 on purchases everywhere else
- That’s on top of a 6,500 star incentive after 4 months spend totaling $500.
That’s enough to help percolate sales. And with 28,865 retail locations, there is no shortage of where to find your hot java, or make your Iced Cloud Macchiato even sweeter.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
