Will dollar-based rewards boost Starbucks’ loyalty program numbers?
With the new system that the company says will be implemented in April, however, stars will be accrued based on how much customers spend rather than the number of times they pop into Starbucks to buy something. For example, if you buy three items in one transaction, you get one star.
Around 75 million people stop in to a Starbucks location every month, and 11 million people in the USA partake in the rewards program.
Under the current rewards program, customers earn redeemable points for every purchase. Because of his frequent visits, Mangano, 43, is a longtime member of the Starbucks rewards program. Today, the Seattle based chain announced that they are changing the program, however. Under the new system, you’ll only need to spend around $5.20 per visit, to accumulate rewards at the same pace as the old 12-visit system. Customers will now have to earn 125 stars for a free item, meaning they have to spend $62.50 to get a free item.
The program will now include only two levels: Green and Gold.
Starbucks got roasted on social media Monday for its decision to change the company’s much-beloved rewards program.
Starbucks says a problem with the current program is that it’s based on transactions so some customers ask baristas to separate each items onto different transactions so they can get a reward faster.
Now, customers have to get 300 stars to get gold status. However, this clearly isn’t great news for Starbucks customers who regularly purchase cheap items like a $2 cup of coffee at the chain. Now getting free food and drink would become tougher, as customers will have to spend a higher amount.
The company is also hoping to curtail wait times. The new plan will go into effect in April, according to a news release. Lastly, Starbucks is introducing a new benefit for Gold members: monthly “double-star days”. So they earn something free typically after spending about $60.