Starbucks has revolutionized the coffee industry with the introduction of the Starbucks Rewards Program. The introduction of the loyalty program led to a massive increment of customers joining the rewards program, increasing the revenue. In strengthening the program, Starbucks introduced a mobile application that is not only more effective to their customers but also more interactive. More purchasing points were introduced outside their retail locations to enhance convenience for customers. Furthermore, Starbucks introduced an exclusive gold card on to which great perks were attached. However, the program has some setbacks. The setbacks include strict payment terms, which can be inconveniencing at times, poor communication to customers on how they earn the points and tiers that do not create exclusivity.
First, the presence of the Starbucks mobile application makes it easier and convenient for the customers to interact with the loyalty program. The company of the application differentiates the loyalty program from others, hence giving it a competitive advantage. Customers use the application to see how stars or points they have at a particular time. The application can also be used to make orders and payments, hence convenience to the customers. Besides, customers can use the application to check on the nearest Starbucks location. When a customer opens the app, he is made by brand new bonus offers for loyal customers with higher points and stars. Such dynamic experiences keep the program looking refreshed always.
With the introduction of many purchasing points outside their retail location, Starbucks expanded its loyalty program’s scope. Customers are encouraged to buy products in those locations since they earn more points when making those purchases outside the retail areas. The customer looks for a star code of the work he wishes to buy. Thus, the program allows Starbucks to motivate purchases regardless of where the brand is, with very minimal costs.