Statistics show that 87% of consumers in the U.S. want loyalty programs from businesses. The Starbucks Rewards program is a rewards & loyalty program that works. The Starbucks Rewards program had over 7 million active users in 2014. One in three U.S. Starbucks transactions is paid for with a Starbucks Card. Starbucks cards can be registered and added to the Starbucks mobile app to accumulate points which translate into points toward free food or drinks. Cards can also be purchased and reloaded through the app.
Earlier this year, Starbucks upgraded their loyalty program to reward customers with more points based on spending. Rather than getting one star per visit, customers now get two stars per dollar spent. They also implemented bonus days called Double Points days which give Gold users double the points per dollar on these designated days. This change gives customers more for their money as opposed to rewarding them for just showing up. Customers who spend $20 are rewarded 40 stars instead of the 1 star they would have gotten under the previous program.
Starbucks has increased its user numbers to 11.1 million in the U.S. in 2016. By making their incentives something that consumers want (free food and drinks) and by making it easy to accumulate points (using a registered Starbucks gift card or through the mobile app), Starbucks has tapped into something that consumers will stick with, an easy and fun to use loyalty program. It brings the company repeat business as well which is the point, after all.
For more information on how to create brand loyalty and boost profits by starting your own loyalty program, contact us.