Starbucks to ‘Redesign’ Rewards Program in 2019

Jun 20, 2018

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Starbucks has its eyes set on a new rewards program. In a statement, Starbucks detailed plans that it expects to continue to develop its Starbucks Rewards program, giving customers more choices for redemptions and payment.

“The company expects newer digital initiatives to contribute one to two points of comp growth in the US, supported by a redesigned Starbucks Rewards program that provides customers more choice around redemptions and payment, as well as expanded personalization capabilities for customers that have a digital relationship with the company,” the company said in a statement.

TPG reached out to Starbucks for comment on what the new program will entail but did not receive a response by time of publication.

In April 2016, Starbucks Rewards switched to a revenue-based loyalty program — a trend, especially in the airline loyalty program sphere. Currently, the program offers two levels of elite status: Gold and Green. To get Gold, you need to earn 300 stars. Each dollar spent at Starbucks is two stars, so you need to spend $150 in order to meet the minimum threshold. Green members, which is the entry level of status, get a free birthday reward, the ability to order ahead, free in-store refills, access to member events and the ability to pay by phone. Gold status, however, gives you those perks as well as monthly double-star days, a personalized gold card and a reward for every 125 stars.

According to the company’s statement, the number of Starbucks Rewards members is growing — up 13% from the previous year. In fact, Starbucks says that 2 million active Starbucks Rewards members have been added year-over-year to 15 million. The growth also comes alongside of the launch of Starbucks’ first credit card with Chase, which was launched in February.

As part of Tuesday’s statement, Starbucks noted that along with the new rewards program coming in 2019, it also plans to close approximately 150 underperforming stores.

Featured image by Zhang Peng/LightRocket via Getty Images.

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