Starbucks Changes Reward Program, Makes Some Members Unhappy
Starbucks recently announced a significant change to its reward and loyalty program that is bound to upset a number of users.
Up until now, the program provided a free beverage or sandwich after every 12 purchases regardless of the value of the purchases. Now, rewards will be based on the number of dollars spent. For customers like myself, this means a huge decrease in benefits. Here is the example that Starbucks sent in an email yesterday:
However, after looking at my own purchase history it seems this is going to reduce my rewards by about 40%. I am spending about $3 a visit – so I get a reward after spending $36. Under this new system, I would have to spend $62.50 to get a reward.
Personally – I think it’s a dramatic change for users. I’d bet dollars to doughnuts that it is at least partially driven by bottom line considerations – regardless of the fact that they attribute it to customer demand.
As an aside, I recently purchased a Breville espresso machine that makes amazing coffee, cappuchino, etc. Since I work mostly from home (or Starbucks), this machine has been saving me a ton of money. It wasn’t cheap (about $600), but the net cost of a cup of coffee is about 60 cents, and I figure it will pay for itself in less than a year. The flavor is tremendous, and it is fun to use.
Article by Craig Aberle
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