Starbucks plans to double its loyalty card membership by the end of this year, according to Adam Brotman, the company’s chief digital officer.
During the company’s annual shareholders’ meeting on March 20, Brotman said the My Starbucks Rewards™ loyalty program continues to resonate with customers, driving increased revenue, traffic, and purchases – offering differentiation from the company’s competitors. Brotman revealed that My Starbucks Rewards would become the “world’s first cross-channel, multi-brand loyalty program.”
Starting in May, Brotman told shareholders that customers will earn My Starbucks Rewards™ Stars for purchases of Starbucks packaged coffee in grocery channels, which can then be redeemed for free food or beverages in Starbucks retail stores. The program is expected to expand to include other Starbucks products sold through grocery channels this fall.
What’s more, Brotman said there will be an integration of the Starbucks Card and My Starbucks Rewards™ loyalty program across several of its brands, including Teavana. Beginning in April, registered customers who make purchases with a Starbucks Card or through the Starbucks mobile app at any of more than 300 Teavana retail stores will be able to earn Stars for their purchases.
Combined, Brotman said the new loyalty program innovations are expected dramatically increase My Starbucks Rewards™ membership -- from its current 4.5 million active members at the end of October 2012 to about 9 million members by the end of fiscal 2013.
In January 2011, Starbucks became the first national retailer to offer its own mobile payment technology tied to a world-class loyalty program. The company now generates over three million mobile transactions each week in the U.S. alone.
New mobile users report that they are embracing the Starbucks mobile payment experience because of the benefits they receive and because it enables them to track their loyalty status in an interactive and engaging way directly on their mobile device.
Starbucks increased its revenue by 14% in 2012, reaching $13.3 billion.
Starbucks estimates that the mall-based tea chain Teavana will eventually grow to at least 1,000 stores nationwide from 300 locations now. La Boulange, a bakery business Starbucks acquired last year, is projected to have products in 2,500 stores this year, up from the 400 San Francisco-area cafes that currently carry its goods.
Starbucks expects Evolution Fresh, the juice brand it acquired in 2011, to double its presence to 8,000 locations by the end of the year. Starbucks plans to open 3,000 new stores in the Americas during the next five years. By 2014, China will become the second-largest market for Starbucks behind the U.S.