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+--- Thread: "Starbucks changes rewards program; small spenders lose " (/showthread.php?tid=188340)
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"Starbucks changes rewards program; small spenders lose " - SteveG - 02-22-2016
First Christmas. Now this!
http://hosted.ap.org/dynamic/stories/U/US_STARBUCKS_REWARDS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2016-02-22-11-15-19
NEW YORK (AP) -- Starbucks is changing the terms of its rewards program so that people who spend around $5 or less per visit won't get as many freebies.
The Seattle-based coffee chain says its loyalty program will award stars based on the dollars spent starting in April. Currently, people earn a star for each transaction, regardless of how much they spend, and get a free food or item of their choice after earning 12 stars. People will now have to earn 125 stars for a free item, with each dollar spent being worth two stars - meaning they have to spend $62.50 to get their free item. That means people who stick with options like plain coffee are losing out. For instance, someone who regularly pays $2 for a regular drip coffee would currently earn a free item after spending around $24 over 12 visits. Under the new system, they would have to visit more than 31 times before they earn the perk.
Someone who gets a large latte for $4.45 currently spends around $53.40 over a dozen visits before getting a free item. That person would need to visit a couple extra times for the freebie with the new system. Still, Starbucks says the change is the No. 1 request among loyalty program members and predicts it will lead to higher spending by customers eager to earn more stars. In a call with analysts, Starbucks Chief Strategy Officer Matthew Ryan said the vast majority of customers will earn rewards at an equal or better rate with the change. Without providing details, he said a "small minority" of customers will earn rewards at a slower pace. The change is not an opportunity to opaquely reduce the value of the program, Ryan said.
The current rewards system can also increase waiting times in store lines, Ryan said, because some people try to get additional stars by asking to ring up multiple items separately. Such instances account for 1 percent of all transactions, he said. The change comes as Starbucks has been pushing to get more people signed up for its My Starbucks Rewards program. Loyalty members spend three times as much as non-members, and help push up profit, according to the company. Last month, Starbucks said it had 11.1 million loyalty program members in the U.S., up 23 percent from the previous year.
Re: "Starbucks changes rewards program; small spenders lose " - rjmacs - 02-22-2016
Lame.
Re: "Starbucks changes rewards program; small spenders lose " - Pam - 02-22-2016
I like it. When I've bought a drink for myself and my daughter I never asked for them to be rung up separately.
Re: "Starbucks changes rewards program; small spenders lose " - graylocks - 02-22-2016
Pam wrote:
I like it. When I've bought a drink for myself and my daughter I never asked for them to be rung up separately.
and as a barista, i thank you for that. customer had me ring in 6 separate transactions just the other day. this change does adversely affect customers that just buy a brewed coffee everyday but given the average ticket is $5 it's really not a major change for the majority of customers. for most, like yourself, it is a change for the better. it will also eliminate the arrogant customers who have us ring up separate transactions and then rudely tell us that they wouldn't have to do that if Starbucks used price instead of transactions to award stars. as if baristas had any say in how the business model is set up.
Re: "Starbucks changes rewards program; small spenders lose " - fauch - 02-22-2016
Is ANYTHING in Starbucks less than $5?
Re: "Starbucks changes rewards program; small spenders lose " - Sam3 - 02-23-2016
The baristas are the ones who taught me to ask for separate transactions to earn more stars. Never have I had a barista be grumpy if I requested separate transactions.
I guess I'm the minority who will probably be dropping out of their loyalty program. I generally get just a pour-over decaf, in other words a plain coffee. It's not worth $64 or whatever the new spending amount will be just to get an overpriced $5.00 sandwich. Too bad, the current system did motivate me to go to Starbucks more often.
The whole loyalty program for me started when one could get a free small coffee just for buying a bag of Starbucks coffee in the grocery store. Then one could get a star for every bag of coffee bought in the grocery store.
It was a nice run while it lasted.
Re: "Starbucks changes rewards program; small spenders lose " - vision63 - 02-23-2016
fauch wrote:
Is ANYTHING in Starbucks less than $5?
A "tall" cup of brewed coffee is $1.75. Their largest brewed coffee is $2.45 here in California. I buy the big one often.
I never understood why people say its so expensive.
Re: "Starbucks changes rewards program; small spenders lose " - N-OS X-tasy! - 02-23-2016
One more reason to be glad I never signed up for this.
Re: "Starbucks changes rewards program; small spenders lose " - pinion - 02-23-2016
Does this program cost money? Why are you guys saying you'll drop out or you're glad you're not part of it? I rarely go to starbucks but when I do I'm spending $5 and some change so I'm guessing this will work out better for me than for my mom that goes at least once a week for a small regular coffee.
Re: "Starbucks changes rewards program; small spenders lose " - graylocks - 02-23-2016
pinion wrote:
Does this program cost money? Why are you guys saying you'll drop out or you're glad you're not part of it? I rarely go to starbucks but when I do I'm spending $5 and some change so I'm guessing this will work out better for me than for my mom that goes at least once a week for a small regular coffee.
no, there is absolutely no cost to sign up for the rewards program. customers are upset because for some it will take longer to get free stuff. first world problem.
you and your mom could share an account and rack up stars that way.