Ramblings

So I’m a little late to the game of joining the Starbucks loyalty program. I’ve been visiting often while on the road, just never took the time to sign up for the loyalty program. Why? It took more effort than I wanted to invest. I had to buy a card, then go and register that card online (or on the app) and then use it.

Finally, I took the plunge, and while I think the technology behind the program is rock solid and looks really good. The structure really misses the mark in my opinion.

Every purchase counts as 1 star… To get to the top tier you need 30 stars. Sounds easy enough. The downside is that there is no distinction between drink types, sizes, cost, etc. Actually even drink quantity. So as I buy my Trenta Black Tea, or even a Venti Frappacino, I get the same credit as someone who buys a tall coffee.

Loyalty programs are obviously built to encourage repeat purchases and higher retention rates. But they should also be profitable as well. Is a customer who buys a small coffee worth the same as someone who buys a drink worth almost $3.40 more? Is someone who buys 10 drinks for the office the same as someone who buys a small tea? In Starbucks loyalty program, all orders are equal.

The goal of any loyalty program should add to the business objectives of the organization. Increasing the revenue per sale, or quantity per order should really be a goal of Starbucks, but they don’t reflect that in their loyalty program.