If you own or manage a coffee shop, you know that drawing in and engaging customers is key to growing your business. Starbucks has mastered the art of customer engagement through rewards programs, bonus stars and challenges - but it hasn't always been easy.
In this article, I’m going to give you the inside scoop on how Starbucks engages customers with rewards programs, and how you can do the same. We’ll look beyond just offering free coffee for points - because there is so much more out there. I'll also help you build a rewards program playbook that will have your customers coming back for more.
It's time to learn the secrets of creating loyalty and engagement programs that attract customers and generate revenue. Let's get started!
Offer Personalized Challenges to Earn Bonus Stars
Every time you collect 30 stars—the equivalent of a free beverage at Starbucks—you can unlock more rewards! Starbucks encourages members to keep earning stars through personalized and regional challenges tailored to their interests.
One way customers are able to maximize their rewards is through bonus stars; special, limited-time challenges that allow them to earn extra stars in addition to the standard 1 star for every $1 spent at participating stores. Bonus stars range from a few extra points for smaller tasks to 1,000 extra points for bigger challenges.
By engaging customers with rewards tailored to their preferences--and showing them opportunities to get the most out of their loyalty membership--Starbucks creates an even stronger relationship than just buying coffee. The best part? Customers can redeem 25 stars for a free ingredient upgrade or even more rewards depending on the challenge. So don't miss your chance and start redeeming bonus stars today!
Make It Easy to Order and Pay Through the App
The Starbucks app not only makes it easier for customers to order their coffee ahead of time, it also gives them the ability to pay in-store. This is a great way to encourage frequent visits, as customers can easily earn bonus stars for their rewards. Customers can use the app to track their orders and even use GPS technology to determine which store they are at.
This system is great for streamlining customer experiences, as customers don't have to worry about waiting in long lines or missing out on rewards. Plus, customers are more likely to become return customers due to the convenience and familiarity of the app. With every visit, customers earn points and cash in on a variety of rewards that will keep them coming back again and again!
Enable Customers to Save Favorites for Quick Reordering
Quick and easy reordering is a great way to boost customer loyalty. In the case of Starbucks' rewards program, customers can save their favorite orders, allowing for lightning-fast access to their go-to drinks.
When customers save favorite orders, they also have the flexibility to reorder them in the order they prefer—giving them a personalized touch to their ordering experience. This convenience, combined with access to exclusive rewards, helps customers feel like VIPs when they come back to shop.
This quick reordering process works best when customers create a favorites list in their account. That way, they can quickly view and access products whenever they need ‘em. For example, when a morning coffee run is needed on the way out the door for work, or an afternoon latte break at the office is in order—now it’s as simple as one click! Make it easy for your customers to get what they want without all the hassle.
Run Double Star Days to Drive Increased Spending
Have you ever heard of Double Star Days? They're a special reward that Starbucks offers members of their loyalty program, and they can be a powerful way for cafés to boost customer spending.
All customers have to do is spend just one dollar at a participating shop to get four bonus stars with their purchase. That means that all those four star purchases will add up quickly, making it easier for loyal customers to earn greater rewards.
Double Star Days are usually available on specific days and times, so it's important for cafés to get the word out about this promotional offer. Regularly advertised Double Star Days and special events can encourage customers to keep coming back for more of the coffee shop's latest products.
At the same time, almost anything can qualify for bonus stars during Double Star Days—even drip coffee purchases. This is an especially useful strategy if your café sells limited-edition coffee beans or brewing gear, as it gives customers an incentive to check out what your shop has on offer each day.
Provide Multiple Ways for Customers to Redeem Their Stars
Stars are the reward currency at Starbucks, and they offer a great way for customers to get something back when they purchase coffee, food items, and other products. But if retailers want to really engage their customers and have them coming back for more, they should provide multiple options for redeeming Stars.
At Starbucks, customers can redeem Stars in a variety of ways—starting with as little as 25 Stars. With that amount of points, customers can get digital content like eBooks and songs from partners like iTunes and Amazon. Every 100 Stars will get them a free food or drink item from the menu, including add-ons like syrup pumps or additional espresso shots.
These different redemption levels not only increase customer engagement but also promote spending higher amounts at your store; every few Stars earned can be exchanged for something interesting. Additionally, customers don’t have to wait long before they can redeem their rewards—which means they can enjoy the benefits of their loyalty program quickly!
Analyze Customer Data to Continuously Improve the Rewards Program
In the age of big data, Starbucks knows exactly how to take advantage of customer data to continuously improve their rewards program. Through machine learning and artificial neural networks (ANN) models, the coffee giant is able to analyze training data and make actionable decisions.
Starbucks leverages location intelligence to gain further insights into customer behavior, preferences, and interests. This means they can understand where customers are located when they make purchases, as well as how often they visit a store and what items they buy. Moreover, with all the data captured from their mobile app, Starbucks gets a better understanding of what needs customers have.
All this data helps them create tailored rewards that meet customers' desires—giving them more bonus stars for activities like ordering through the app or participating in events—which keeps customers coming back for more. With the right amount of personalization and thoughtful incentives, Starbucks is able to drive brand loyalty and customer engagement in a big way.
Starbucks' rewards program shows us that customer loyalty isn't just driven by offering discounts, it's about engaging customers and offering them tailored rewards. By understanding how their customers engage with their brand, Starbucks were able to come up with innovative ways to reward customers for their loyalty.
By introducing personalized challenges, Starbucks was able to drive up engagement levels with their rewards program, and customers were able to earn bonus stars in an easy and enjoyable way. With the convenience of ordering on the Starbucks app, and the ability to pick up with ease, customers were further incentivized to keep returning.