- It favorizes paying with prepaid gift cards which can increase your company’s liquidity.
- It is highly engaging due to gamification elements, such as bonus start days and badges.
Starbucks Rewards is a loyalty program run primarily via a dedicated loyalty mobile app, where customers can accumulate points. Cards are available in plastic and virtual versions in the Starbucks mobile app. To join the program, customers have to create an account online at the Starbucks website, register at least one Starbucks card to an account and activate it for $5 (add $5 credit to the card).
The loyalty program allows its members to gain points with every purchase made in Starbucks or online at the Starbucks store. These are the earning rules of the program:
- Each $1 spent equals 1 point (called STARS) if normal payment.
- In case of payment with preloaded money (on Starbucks gift card, loyalty card, mobile app) then $1 spent equals 2 points.
- In case of payment with Starbucks® Rewards Visa® Card $1 spent equals 3 points.
Customers can also earn stars on Starbucks branded product purchases from retailers. Products include packaged coffee, K-cups, packaged prepared beverages, and more. These items are labeled with a "star code" and the receipt can be scanned into the mobile app for redemption. There are other, occasional offers where customers can participate in games and special offers in the app or on the website to earn bonus stars. Periodically, Starbucks launches "double star days" that allow members to earn double the stars on qualifying purchases.
The program is divided into two tiers (levels):
- Green level – customers have to use their Starbucks loyalty card once.
- Gold level – customers have to use their Starbucks loyalty card to collect 50 Stars within 12 months.
Members can exchange the collected stars for the following rewards:
- 25 stars: Free drink customization.
- 50 stars: Free brewed hot coffee, tea, or bakery item such as a croissant or bagel.
- 150 stars: Free handcrafted drink (such as a latte), hot breakfast (such as a breakfast sandwich or oatmeal), or parfait.
- 200 stars: Free packaged lunch, such as a protein box, salad, or sandwich.
- 400 stars: Free select merchandise or packaged coffee beans.
Besides points, members of the Green Level also get other rewards, such as birthday specials, free in-restaurant refills, member-only offers and a possibility to pay by phone and order ahead.
Members of the Gold Level get all the benefits of the Green Level, as well as monthly double-star days, personalized gold cards, and extra reward every 125 stars.
To redeem rewards, after a customer has reached a desired star level, they can choose to redeem it when ordering ahead using the mobile app or show it to the cashier at their local Starbucks. The stars will be removed from their account after redemption. Customers can choose to use their stars however they like, for example: if they have 50 stars, they can redeem them for one 50-value reward, two 25-value rewards, or keep earning more stars to get a higher-value reward.
- One of the best features of Starbucks Rewards is their mobile app that allows users to redeem their rewards offline at the store and that offers additional rewards and ways to earn rewards. It is intuitive and handy, especially at the physical stores.
- This loyalty program scenario is quite complex, if you are planning to copy it you can simplify it a bit and apply only some of the rewards or earning rules to start with.