Looks like Starbucks is getting some flack after deciding to define 'loyalty' with money.
Instead of the usual reward system implemented by Starbucks, wherein loyalty is defined as the frequency of visits to a store, the company is said to be revamping its methods and decided to weigh loyalty with the dollar sign.
This means that people who spend more on their items will be rewarded more compared to people who regularly goes to Starbucks and buy something cheaper than the others.
On Monday, Starbucks announced that will change in April "to reflect the #1 request we heard from members: more Stars awarded based on what you buy, no matter how often you visit." Stores in the United States, Canada, and Puerto Rico will be implementing the drastic change.
Starbucks customers will soon get a lot more stars: two for every dollar they spend. But instead of 12 stars for a free drink, they will need 125. This is probably not what customers meant when they asked for "more stars."
Starbucks said it currently has about 11 million active rewards customers. Nationwide, its U.S. cafes receive 75 million customers each month.
Starbucks Global Chief Strategy Officer Matthew Ryan told investors this was "the number-one customer-requested update" and "as we switch the mechanics of the program, we are not using it as an opportunity to opaquely weaken the rewards proposition." He added that most customers spend about $5, and that "there is a small minority of people who would either be advantaged or disadvantaged" by the change.
Of course, not everyone was happy.
"This is a huge slap in the face for people who enjoy regular coffee," said Matt Baumann, an editor in Philadelphia who has been a "Gold Level" My Starbucks Rewards member since 2007.
Tim Petersen aired out his disappointment on Twitter, saying "Thanks @Starbucks for punishing those of us who enjoy regular black coffee. #rewards #stars #customerservice"
Starbuck's Facebook (LINK) account also experienced a lot of complaints through the angry customers' comments. The company was still courteous o respond.
But according to the analysis of Josh Barro from The New York Times, this move is logical.
"Companies want to reward their most profitable customers, not necessarily their most frequent ones. At Starbucks, small spenders will lose out. A customer who likes drip coffee at $1.95 per cup will have to buy 32 of them to qualify for a free drink," the reporter said. "And it's especially good news for people whose job requires them to make Starbucks runs for the office," he added.
