Losing a Latte Love for Starbucks
Adriana L. Cowdin
Executive Coach | Empowering Leaders to Navigate Change | 4x Entrepreneur & Ex-CEO | Featured in Forbes, NY Times, Inc. 500, ABC & More
"There's something wrong with my coffee, it tastes like coffee." - Guy at Starbucks, Keystone Mall Indianapolis
I cracked up when I heard this guy's complaint. Did he know he was at a coffee shop? Apparently Starbucks may have forgotten who they are too. The new loyalty program is rewarding this guy, and those like him. It's now based on dollars spent v. items purchased. He, and his double shot, double syrup, extra whip, non-fat milk $8 cup of don't-let-it-taste-like-coffee "coffee" drinkers are who Starbucks is rewarding.
Those who drink the $2.02 Tall Pike Place drip are bottom-line losers for the coffee behemoth. I'm one of the $2.02 people that loves the smell, taste and experience of coffee. It's a cup of goodness shared alongside my New York Times, Wall Street Journal (in paper format) or with a great friend while we relax, discuss politics or laugh at good times. What I'm not is Starbucks favorite customer apparently.
For years Starbucks has been where I've met friends, spent Saturday mornings working or even "held it" until I found one a road trip. Sadly the revenue brought in by my loyalty is no longer the kind they want. This week Starbucks announced they're going the way of Delta SkyMiles and United MileagePlus. As a businesswoman and marketer, I get it. It's a bottom-line approach to loyalty and easy to understand: reward those who spend more.
What I don't get it why they developed what appears to be such lofty goals to achieve. The current model is:
1. Buy a food or drink item, earn 1 star
2. 12 stars earns you a free item
3. 30 stars earns you gold status
The new Starbucks model, based on the email I received and articles I've read is:
1. Spend $1, earn 2 stars
2. 125 stars earns you a free item
3. 300 stars earns you gold status
Seems straightforward enough, right? The Starbucks app calculates the stars for you which means it'll be easy. Will it though? Consider this:
- This model is more difficult for the consumer to understand. Ex: How many of my favorite drink does it take to get 125 stars? Before it was easy...it took 12 regardless of the price of the drink.
- It appears to be harder to earn rewards & benefits. Previously the customer had to get 12 stars for a free drink or food item and 30 to reach gold status. Now they have 125 and 300 marks which appear to be much higher and harder to achieve.
- Starbucks is a coffee company. This penalizes a customer who enjoys a cup of good ol' fashioned coffee.
Good for the bottom line but not the bottom of the cup. As for me and my $2.02 Tall Decaf Pike Place, it's going to take quite a bit of time to get 125 stars much less 300. A bit sad as I've had a Gold Card for more years than I can remember. The card can be any color, I simply appreciate the free refills while in store. As for me an my coffee, I'll be sampling a few new shops here in town. I hear Hubbard & Cravens has quite a nice selection. #NewOptions
Director of Marketing And Business Development at Precision Contractors | AEC Photography and Content Marketing
8 年As the head of a family who loves stopping at Starbucks, I'll take the extra recognition for my often outsized orders. :) I understand the frustration as I always admired how the old program rewarded attendance instead of $$$ (even if I wasn't getting credit for the extra milk and cookies for the kids).
Dad | Chief Marketing Officer at Naf Naf Grill
8 年Darren Rankine Dane K. Mathews DeLu Jackson
CDO I CMO l President l Former exec at Amazon, PVH, Saks, Shopbop
8 年Love it Adriana S. Llames
Go-to-Market Strategy | Positioning & Messaging | Sales Enablement | Demand Generation | Med Device & Healthcare
8 年Right on!! I order a small Pike Place 4-5 times per week and drive out of my way for an Sbux vs their competitors which there are many.
My bet is if Howard Schultz reads this, you're next post will be announcing that you are the new Starbucks SVP of Consumer Relations.