Starbucks changes rewards program



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Starting April 16, members of coffee companies that are members of the coffee producing company in the United States and Canada will begin to earn rewards faster and have more options when redeeming points. . For customers who use a Starbucks Rewards credit or debit card, points do not expire. (They always expire after about six months for other members.)

Digital rewards programs are a way for companies such as Starbucks (SBUX) increase loyalty and learn more about their customers. The update is designed to get even more people into the program by offering more choices.

The current rewards program works as follows: customers get two points, or stars, for every dollar spent. Customers must reach 300 stars in the year to begin qualifying for rewards. Once eligible, they can get a free drink or food for 125 stars. If they keep the points up to reach, for example, 250 points, they can redeem them for two free drinks, two food items or one each.

The new system allows people to get different rewards for different amounts of stars, and starts at a lower level. Members can earn 25 stars for an extra espresso, milk substitute or other flavor pump. For 50 people, they drink coffee or tea or a bakery item, etc.

Changes to the Starbucks Rewards program will come into effect in April.

More flexibility can serve more types of customer behaviors, told CNN Business Matthew Ryan, director of marketing for the company.

"There are people who like to spend at very low levels, and there are people who like to accumulate a lot of points," said Ryan. "For now, we only have the middle of the beach."

Starbucks launched its rewards programs in 2009, but has changed its operation over the years. Notably, in 2016, Starbucks introduced the two-star structure per dollar, replacing the previous system with one star per visit. In recent years, the number of members has increased as the company has increased its digital capabilities.
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In the last three months of last year, the number of active members rose to 16.3 million, an increase of 14% over the same period of the previous year. In the last two years, the number of members has increased by more than 25%.

"Starbucks Rewards continues to be a powerful catalyst for loyalty," said Managing Director Kevin Johnson, while discussing the benefits of this quarter in a telephone conversation with analysts. He teased the changes that will be adopted in April. Roz Brewer, the company's director of operations, noted at the time that the amount of rewards spent by each member was spending upward.

"As the program grows and it has more options, we think more people will participate," Ryan told CNN Business. They can "spend a little more, too".

Other companies become creative with their own loyalty programs.

Chipotle (GMA), which announced its first national awards program last week, donated money to Venmo to share the information. And Burger King has announced a subscription service of $ 5 a month that offers members a cup of hot coffee a day.
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