LOS ANGELES – Starbucks Corp on Monday announced changes to the loyalty program that will mean some customers will need to spend more money in the coffee chain to earn free drinks and food.
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Under Starbucks’ current rewards program, customers earn redeemable points for each purchase. The new program will award points for each dollar spent, a change that’s certain to spark complaints from customers who are used to accumulating points with frequent purchases of drip coffee and other lower-cost items from the Seattle-based chain.
The widely anticipated change to the Starbucks Rewards enter in america, Canada and Puerto Rico may come as airlines and other companies have been tweaking their rewards programs to ensure they are generally less-generous to consumers.
Starbucks customers now earn one “star” per purchase and may redeem 12 stars for a free drink and food item. From mid-April, customers can get two stars for every $1 spent but need 125 stars to get a free item.
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Matthew Ryan, Starbucks global chief strategy officer, said the modification was not a method to weaken Starbucks’ rewards program. The vast majority of Starbucks customers will earns rewards in the same pace they are doing today and also the total percentage of revenue that Starbucks will give you as rewards will stay constant, Ryan said.
However, he acknowledged that the change will affect a little minority of the a lot more than 11 million active users of Starbucks’ reward program.
About 1 percent of the chain’s total transactions now come from “cheque-splitters,” customers who request two or more transactions in one trip to earn stars more quickly, Ryan said.
While the modification would mean that some Starbucks customers get less for their stars than previously, it will benefit those who spend probably the most, said Patrick Surry, chief data scientist at Hopper, who has analyzed airmiles programs.
“It aligns the incentives so the more spent, the greater you receive back,” Surry said.
? Thomson Reuters 2016
