To inspire customer loyalty and promote a brand, most companies have their own rewards. The coffee giant Starbucks is no exception. Their rewards program, called the My Starbucks Rewards, consists of earning stars when customers purchase a Starbucks product (may it be a beverage, dessert, or sandwich). Once customers have enough stars, they can enjoy rewards such as free drinks or food, Starbucks items early access to new products.
Last Monday, however, Starbucks announced that they would be changing the mechanics of their rewards program this coming April 2016. Before, a customer would earn a star everytime they visit a Starbucks regardless of how much they spent. Under the new rules, however, a star can be earned per dollar spent.
Sounds good, right?
The problem is that Starbucks also increased the number of stars one had to earn before they could redeem their rewards. Under the old program, a customer only needed a minimum of 12 stars (or 12 visits). If that customer spends $2 per visit, they could already get their rewards once they spend $24.
With the new program, a customer can earn two stars per dollar spent but they would need to reach 125 stars before they can start getting their rewards, which totals to around $62.
According to Starbucks Global Chief Strategy Officer Matthew Ryan, the move was facilitated because it was "the most requested customer update", and that the move was not an "opportunity to weaken the rewards program". He further added that most people spent an average of $5 per order and that only "a small minority would be advantaged or disadvantaged by the changes."
Of course, there's a mixed bag of reactions from people who are parts of the rewards program, and some people are more vocal about it, voicing out their displeasure on social media.
Only time will tell whether or not the Starbucks rewards program will suffer or flourish under the new mechanics.
Do you think it was a good or bad move by Starbucks to change their rewards policy? Share your thoughts with us!
