Marketing Lessons to Learn from Starbucks' Loyalty Program

Starbucks has been a pioneer in innovative marketing and is known for having one of the best loyalty schemes in the world. They also set the standard when it comes to customer engagement as well. From seasonal offerings to holiday-themed beverages, they always have their finger on the pulse when it comes to customer demands, with a strong marketing program that ensures customers return time and time again.

Attainable Rewards and Giveaways

Every holiday season, Starbucks gives away free reusable cups to customers who order a specific beverage. The giveaway is highly anticipated and has become a part of their marketing strategy. People flock to stores to try and get their hands on a limited-edition cup, with the event helping to build buzz for the brand. With free birthday drinks and double-star days also offered, customers are not only able to earn rewards, but they’re able to earn them faster. Strategies like this encourage people to sign up with the program during specific times while creating a sense of urgency. It’s not just Starbucks that has adopted giveaways either. Microsoft also has a great marketing program, where people can earn points towards Microsoft services by browsing on Bing, playing games, or making qualifying purchases.

Similarly, also within the digital world, the official World Series of Poker app allows you to claim up to one million WSOP free chips by using a discount code. Players can also earn rewards by partaking in special promotions, or by taking advantage of the introductory rewards scheme. Loyalty programs like this give players the chance to earn 20,000 additional chips, with the option to expand on this further by playing particular games. When you break it down, it’s easy to see how the marketing model used by Starbucks, which is one of the most successful in the world, can be applied to many different verticals, from tech to gaming and beyond.

Personalization and Encouraging Repeat Visits

During the summer months, Starbucks also runs the Treat Receipt promotion. If customers happen to purchase a drink before 2 pm, they can bring their receipt back later in the day in return for a discount on another beverage. Giveaways like this, in combination with the loyalty program, encourage repeat visits. As the second beverage also counts towards loyalty stars, it shows how much value there is in this for the customer. Starbucks is also known for using data-driven insights to personalize its loyalty offerings. Through the mobile app, customers can see a range of tailored promotions, based on their purchase history. 

If you often order a caramel macchiato, you may receive a special offer to earn bonus stars on this the next time you buy it. By utilizing personalized offers, it becomes possible to ensure repeat engagement, while increasing the chance of repeat purchases. Starbucks has even reported that personalized offers like this have increased engagement by up to 80%.

Companies like Sainsbury's have also adopted this model, using personalized Nectar prices for customers who buy the same products every week. Successful marketing models like this help to show how powerful personalization can be, especially when combined with giveaways and a strong loyalty program.