Starbucks in the United States has revised its member benefits and has more options to redeem points from April.
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Ultra-loyal customers who use Starbucks' membership program account for about 40% of the company's sales at its u.s. stores. Now, the measures taken by Starbucks are believed to make the plan more attractive.
From April 16, reward members of coffee companies in the United States and Canada will begin to receive awards faster and have more options when redeeming points. For customers who use Starbucks bonus credit or debit cards, points will not expire. (other members will still expire after about six months. )
Digital incentive programs are a way for companies such as SBUX to increase loyalty and customer information. This update aims to get more people to join the program by providing more options.
The current incentive scheme works as follows: customers get two points or stars for every $1 they spend. Customers need to reach 300 stars within a year to start getting rewards. Once they meet the criteria, they can get free drinks or free food for every 125 stars. If they keep points until they reach 250, they can exchange points for two free drinks, two foods or each.
The new system allows people to receive different awards at different stars, starting at a lower level. Members can buy extra espresso, dairy substitutes or other flavor pumps for 25 stars. At the age of 50, they get coffee or tea or baked goods, and so on.
Changes to the Starbucks incentive program will take effect in April.
Matthew Ryan, the company's chief marketing officer, told CNN Business that more flexibility could serve more types of customer behavior.
"some people like to spend at a very low level, and some people like to hoard a lot of points," Ryan said. "right now, we are just the midpoint of the range."
Starbucks launched an incentive program in 2009, but has changed the way it operates over the years. It is worth noting that in 2016, Starbucks launched two stars for every $1 structure-replacing one star for each previous access system. In the past few years, as companies have increased their digital capabilities, so has the number of members.
In the last three months of last year, the number of active members increased to 16.3 million, an increase of 14% over the same period last year. In the past two years, the number of members has increased by more than 25%.
"Starbucks Rewards continues to be a strong driver of loyalty," Kevin Johnson, chief executive, said on a conference call with analysts to discuss earnings for the quarter. He teased the changes to be taken in April. Roz Brewer, the company's chief operating officer, pointed out at the time that the amount of money spent per award member had been increasing.
"when the plan gets bigger and there are more options, we think there will be more people to join," Ryan told CNN Business. They may also "spend more money".
Other companies are being creative through their own loyalty programs.
Last week Burger King announced a $5-a-month subscription service that provides members with a free cup of hot coffee every day.
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