Loyalty case study – New Starbucks Rewards Program


Presentation Description

Starbucks Rewards, a loyalty program launched by Starbucks, an American coffee company and coffeehouse chain.The program has been one of the most successful implementations of loyalty and customer retention strategy and has propelled Starbucks to a whopping $19.6 billion in revenue. Customers enrolled in the program love the program and are appreciated with free goodies (free drink refills, birthday drinks, pay by phone facility etc.), interesting tiers and engaging user experience. The program encourages customers to download its app leading to greater spending in comparison to payments made via cash or credit card. The award winning rewards program is not only reducing the probability of customers turning to another coffee store but is hooking them to the Starbucks Rewards Program like never before. Read more https://zinrelo.com/loyalty-rewards-case-study-new-starbucks-rewards-program.html. Analysis by Zinrelo, loyalty rewards and referral marketing platform. For more information contact Zinrelo at +1 650 701 7759, email at info@zinrelo.com or visit us at www.zinrelo.com


Presentation Transcript

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Case Study by Zinrelo

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1. How does the new Starbucks Rewards work 2. Why do customers like the Starbucks Rewards program 3. Why does Starbucks love the new program 4. How could the Starbucks Rewards program be improved STARBUCKS REWARDS PROGRAM by Zinrelo

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by Zinrelo Differences between the new and old Starbucks loyalty program

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How does the new Starbucks Rewards Work 1 The new rewards program is a classic example of how a company realigns its loyalty rewards program with customer spending levels. Rewards New Tiers Benefits Customers are rewarded 2 stars for every dollar spent on any drink food or other item at Starbucks. Customers are enrolled into the Green tier upon sign- up. Earn 300 stars to get upgraded to the Gold tier. Free drink on birthday free drink refills in-store pay by phone order in advance to avoid waiting in line. by Zinrelo

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Why do customers like the Starbucks Rewards program 2 Starbucks is making it easy for customers to earn rewards Customers load up pre-paid balances on their Starbucks app making it quick and simple to make in-store purchases. Their reward summary is shown on the app. by Zinrelo Free Goodies Fun and engaging user experience Gold Status for High Spenders User Experience

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Why does Starbucks love the new program 3 Starbucks love the new program because it is aligned with user spending. It encourages higher spending and collects copious amounts of valuable user data. by Zinrelo The more You SPEND the more you EARN More users are downloading the Starbucks app

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How could the Starbucks Rewards program be improved 4 The perceived payback for Green members is very low. The benefits are rather unsubstantial. Therefore unless Green members feel they have a shot at getting to Gold status they have very little incentive to spend 150 per year. More people will stagnate in the Green tier and may experience some dissatisfaction. 1. Give Green Members Free Drinks 2. Award Surprise Bonus Stars to Gold Members 3. Award Stars for Referrals 4. Allow Family Accounts by Zinrelo

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The new Starbucks Rewards program is one of the top loyalty rewards programs in the world. It significantly reduces the probability that customers will buy coffee at another store. Zinrelo gives the Starbucks Rewards program top marks for creating an amazingly engaging user experience. With a few minor tweaks the Starbucks Rewards program could create a rush of Green members striving to achieve Gold status. The suggested improvements will encourage greater user spending to achieve accelerated reward levels. by Zinrelo

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