It’s happening again! Starbucks is taking steps to further reward its members through its loyalty program. Starting on April 16, the coffee company’s rewards members in the United States and Canada will start earning rewards sooner and have more options when redeeming points. For customers who use a Starbucks rewards credit or debit card, points won’t expire.
The move is intended to bring more people into the program by offering more choices, as well as rewarding current members for their increased loyalty. With the current rewards program, customers get two points for every dollar they spend. Customers need to hit 300 points within one year in order to start qualifying for rewards. Once they qualify, they can get a free drink or free food for every 125 points. If they hold on to the points until they reach, say, 250, they can redeem the points for two free drinks, two food items, or one of each.
However, the new system enables people to get different rewards for different amounts of points and awards points at a lower tier. Members can cash in 25 points for an extra espresso shot, dairy substitute, or another flavor pump. For 50, they get can coffee, tea, or a bakery item.
“There are people who like to spend at very low levels, and there are people who like to hoard a lot of points,” says Matthew Ryan, CMO of Starbucks. “Right now, we have just the middle point of the range.”
Since the inception of Starbucks’ loyalty program in 2009, the landscape has changed a few times. In 2016, Starbucks introduced the two-points-per-dollar structure, a replacement for the previous one star per visit system. Over the past few years, membership has risen as the company has increased its digital capabilities.
In the final three months of last year, active membership grew to 16.3 million members, a 14 percent increase compared with the same period a year before. Over the last two years, membership has grown more than 25 percent. “When the program gets bigger and has more options, we think more people will join,” says Ryan. “They may spend a little bit more, too.”
However people feel about it, one thing is certain. When Starbucks changes its loyalty program, everyone has an opinion.