There are many loyalty and engagement programs around the world. There are some very successful ones that manage to create a relevant connection with the client. But above all those, only a few with superior performance stand out. Among that select group is the Starbucks Rewards program. What is it about this program that manages to captivate most of its users? Created in 2008, it has undergone modifications over time, but still remains very effective for the purposes of the client and the brand.
According to a CNN media report, by October 2022, the program had close to 29 million active users with annual growth of more than 15% in its customer base. Harvard on its own published that Starbucks Rewards accounts for more than half of the sales generated by coffee shops. The program is available through the Starbucks app. The formula is very simple, customers benefit from:
- An easy way to pay at coffee shops
- Pre order and pick up in cafeterias which creates convenience for users
- Personalized benefits and rewards such as stars that translate into free drinks on birthdays, extra shots and other additional products at no cost.
- Special events for users
- The possibility of sending gift cards to other users of the app
- The app integrates with other functionalities, for example, Spotify
Starbucks Rewards manages to meet customer expectations, with a simple user experience delivering gamification options, personalization, events, rewards and more. In addition, all this transactionality in the program provides Starbucks with very broad and deep data so that the brand can get to know its customers better, translating into personalized communication and benefits. Another additional result that has been obtained is an increase in the frequency and average spending. In 2011, the app was created with the idea of connecting the program with a payment method, which increased the frequency of use even more. According to Patrick Grismer, former CFO of Starbucks, “when a customer joins the loyalty program and uses the app, their visit frequency and spending increase considerably.” The above not only from regular users, but also from super users and the best clients. In the end, the digital strategy serves three main purposes: customer engagement, consumer data and creating value for the brand and organization.
Some of the reasons for the success of the strategy are:
- personalized experiences
- Easy Access Benefits
- Simplicity and transparency
- Excellent UX
With all of the above, Starbucks has managed to show that it is a customer-focused brand through innovation. The investment focus they have had on technology has allowed them to capture great value for users and the organization. They are constantly innovating, such as the latest functionality that includes the use of voice to pre-order orders. To maintain its leading position in the loyalty and digital experience segment, Starbucks must continue to invest in innovation and technology that will allow it to constantly improve the value proposition and experience for its millions of users.
