Starbucks is making changes to its rewards program, requiring members to spend more to accumulate a variety of popular freebies.
Starting February 13, members will need a minimum of 100 stars (see definition of star) at Starbucks to redeem a cup of hot or iced coffee or tea, a baked good, a packaged snack, or a to-go tumbler. 200 stars are required to redeem a latte or Frappuccino, and 300 stars are required for a hot breakfast item, a salad, a plain lunch sandwich, a protein box or a bag of beans.
Presently, members only need 50 stars to receive a hot tea, coffee, bakery item, latte, hot breakfast item or parfait, 150 for a salad, lunch sandwich, or protein box, and 200 for a sandwich.
Members of a program earn stars when they make a purchase. If they use a Starbucks Card, one dollar spent will generate two stars. For credit-card payments or other payment methods, members earn one star per dollar.
The new tiers are specified on the Starbucks Rewards terms of service site. A newspaper published an internal memo on Tuesday that outlined the new tier structure.
Incentive programs are an important method for businesses to create loyal customers, understand their particular preferences and inspire repeat purchases.
Starbucks reward program: free drinks and food
“The rewards program … is generating significant revenue for Starbucks,” said interim CEO Howard Schultz during a November analyst call. In the three months ending on October 2, the number of active Starbucks rewards members jumped to 28.7 million, up 16% year-over-year.
Starbucks has been experimenting with its rewards program in recent months.
In October, the coffee company opened an affiliate partnership with Delta to offer airline miles as a reward to members in its rewards program. And in November, it launched a beta version of Starbucks Odyssey, an extension of that program from which participants can redeem NFTs.
While benefits are of great interest to members, they are also ready to share their criticisms about private companies for making adjustments.
Fans of Dunkin‘ slammed the brand’s recent changes, while Starbucks customers took to social media to express their frustration with the new tiers.
With information from CBS News