Starbucks to ‘Redesign’ Rewards Program in 2019
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.