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What We'd Like to See in a Starbucks Loyalty Program


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Amid all of the hubbub out of Starbucks recently — Howard Schultz's now famous memo on the "commoditization" of the coffee giant and his return as CEO — one fact has gone little noticed: Starbucks appears to be getting ready to start a loyalty program.

In an interview with Fortune Magazine's Andy Serwer last month, Howie admitted that the company has become "less passionate about customer relationships" in recent years and promised that "we will do more things to better reward our most loyal and best customers."

For the caffeine-addicted among us who carry tons of little cards around in our wallet trying to earn freebies, this is amazing news. It's enough to make anyone forgot about the latte factor.

So what should Starbucks do for its very best customers? I have a bunch of ideas — and hope you'll toss yours at the bottom of the post too.

1) Wake up to the fact that the Starbucks card is not a loyalty program. The Starbucks card — basically a pre-loadable (and re-loadable) gift card that customers can use at the chain each day — is an incredible phenomenon. About 15% of the chain's transactions happen via the card. Any retailer that can convince people to pay in advance for its products is clearly doing something right.

 

But customers don't get something extra in exchange for using the Starbucks card. Even its Duetto Visa card — which doubles as an in-store Starbucks card while also allowing holders to use it anywhere as a credit card — offers rewards that are merely average.

2) Give people financial incentive to come to Starbucks all the time. Starbucks didn't need to do this years ago. But having raised everyone's coffee consciousness, folks are now that much more aware of the improved offerings at, say, McDonald's. They're also more likely to sample even higher-end stuff at various regional specialists.

That's why Starbucks ought to be discouraging the patronization of other coffee shops by tracking monthly spending at Starbucks via its cards. Then, it should reward those who, say, spend more than $50 or $100 in a given month. Maybe the first drink under $5 is free each month after someone has spent $100 in the previous month. Or maybe the chain should give more freebies to folks who buy more profitable beverages.

Even better, give store managers the power to get at the data and surprise their customers with even better free stuff when a new competitor opens down the street or in the month of a favorite customer's birthday, or whatever.

3) Create an elite status. Airlines have it. Why not Starbucks?

First off, don't make me wait in a long line first thing in the morning or during the afternoon rush. If I spend a lot there, I want to be able to use a special, shorter line. If other customers are jealous, that's tough; let them spend their way into the short line.

 

Also, how about reserving seats next to the electrical outlets for folks who spend the most money at the chain, rather than letting total randoms hog the powered tables for the price of a small drip coffee? And let's throw some free wireless in once in a while to boot.

 

Finally, the reason I don't camp out in Starbucks like so many other people do is because I have a bad back and don't like its chairs. Starbucks should have some Aeron chairs in each outpost and save them for its elite customers.

4) Throw a members-only party when new products come out. I have an unnatural (and unhealthy) fascination with new food products, so I always try to sample new items in fast-food chains and grocery stores alike. Why doesn't Starbucks invite me to a preview night every time a big, new product comes down the pike?

 

I never did get to taste those Starbucks breakfast sandwiches, for instance, and now the chain is banishing them thanks to their offending odor.

 

 

What do you want Starbucks to do to reward you for your patronage? Please comment below.

 

-- Ron Lieber


Category: Entertainment

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Samantha
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Wow, buddy.
You're full of it.
Get over yourself, and your elite status you seem to think you have.

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Ron Lieber
FiLifer

Thanks Samantha!

But full of what, exactly? The simple fact is, if I spend more, I should get more. Plenty of Starbucks' competitors agree (and serve better coffee too).

Elite status is an unfortunate term, but I didn't make it up.

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Angela
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Angela said

How would you justify the cutoff point for "elite" status? If I spent $49 in February, does that mean I'm off the "elite" list for the month? Or the year? What if the reason I spent less was because I was ill, or in an accident, or had a death in the family?

Don't laugh -- the Starbucks snobs will absolutely contest the lost of their "elite" status if they underspend one month. Same thing if they suddenly can't sit in the "special" chairs.

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Ron Lieber
FiLifer

I think you should have to earn it each month, or maybe each quarter. This doesn't seem like the sort of thing that you should get to keep for a year, the way you do with airline loyalty programs, given that we're talking about a daily activity here.

Another idea: Anyone spending more than $50,000 a year or $4,000 per month on the Duetto card should get elite status comped for some period of time, no matter how much or little they spend in the store.

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tim horton
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You all should go get coffee TIM HORTONS its half the price and alot better quality also have a full menu of great food!!!!

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Ron Lieber
FiLifer

Ah, sainted Timmy's. If only we had more of them south of the 49th...

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Areku
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Areku said

So, big spenders at McDonalds should also get invited to parties to launch the release of every new McSandwich, right?

Come on, dude. It's just coffee.

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Ron Lieber
FiLifer

Hey, you don't have to come Areku. More breakfast sandwiches for me!

Seriously, some people chase new food, some chase new bands, some go to NBA games. We all have our hobbies and mini-obsessions.

Am I the only one who has to try a new Ben and Jerry's flavor upon seeing it in a store?

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Atiajohn
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Having a Caribou Coffee card on my keychain and a Starbucks card in the purse, I would like to see Starbucks have a promotion like Caribou runs from time to time. For every 10 purchases over a $2.50 made within a set period of time (ex March 15-May 1), Caribou will give you a four dollar credit on your card. You have to register your card on their website the first time, but I have my SBux card registered so I can check my balance. It's not a lot and I usually don't get to Caribou as often as I'd like to get my 10 purchases, but it gives me something to strive for and that keeps me happy. It's the little things.... :)

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coms
Newcomer
coms said

c'mon Ron.....
this is senseless....
look around you..... watch the News (tv)......
90% of population are hungry.... in fact, there's war!!!
you think of something better than your coffee, right?
shame......... : (

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