Brand Loyalty at Starbucks Climbs Even More

Starbucks Brand Loyalty Starbucks has never had a problem with customer engagement and brand loyalty. Judging from its stellar second-quarter fiscal results, that customer loyalty has reached another level.

During the April 23 Starbucks earnings conference call, CEO Howard Schultz offered some eye-opening numbers tied to the company’s My Starbucks Rewards loyalty program.

“We know that increased Starbucks card sales drives increased My Starbucks Rewards membership and, in turn, increased traffic and sales in our stores,” Schultz said, according to Seeking Alpha. “We added 1.3 million new My Starbucks Rewards members alone in Q2. More additional members in one quarter than most loyalty programs have in total, and now have over 10 million active members with almost $6 million members being active Gold members. My Starbucks Rewards will continue to be among our most important business drivers as new members contribute not only to short-term increases in revenue and profit, but also to long-term loyalty for many years to come.”

In December, Starbucks introduced Mobile Order & Pay to 150 stores in Portland, OR.

“Since then, we’ve expanded mobile order and pay to over 600 stores in the Pacific Northwest and we are now on track to roll out mobile order and pay nationwide this calendar year,” Schultz added. “Mobile order and pay has been extremely well received by our customers enabling them to order ahead, avoid lines, avoid waiting for orders to be filled resulting in shorter lines, faster service, improved more efficient in-store operations and execution, and an elevated Starbucks experience. Mobile Order & Pay is driving incrementality as we’re seeing an increase in both attach and daily transactions in those stores and markets where mobile order and pay has been launched.”

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