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Loyalty Program Attributed to Starbucks Sales Success

Starbucks Loyalty Program

Starbucks Loyalty Program

Last week Starbucks reported a 6% sales increase for the second quarter of 2014. Company executives attributed part of that success to the My Starbucks. Adam Brotman, Starbucks Chief Digital Officer, indicates that the Starbucks Card is helping drive up incremental revenue at its core business through personalized offers and more relevant customer communication.

Starbucks reports that sales on the Starbucks Card program now account for one-third of transactions in the United States and Canada, with 10 million Starbucks customers actively using the mobile app, twice the number of a year ago.

COO Troy Alstead said on the same conference call, “We are in very early stages of building out this entire digital program, understanding how to connect with customers across multiple channels through the loyalty program, the experiences they have in stores, and with the power of the [rewards] stars that we’re already seeing.” He described the My Starbucks loyalty program as growing “dramatically.”

“Starbuck’s record operating performance in Q2 demonstrates that our focus on building a different kind of company – performance-driven, through the lens of humanity – continues to drive profits and shareholder value,” said Howard Schultz, chairman, president, and CEO of Starbucks Coffee Company. “The innovation we are bringing to market through the reinvention of our Teavana business and partnership with Oprah Winfrey, our reimagination of the Starbucks Experience through next-generation payment and loyalty programs, and our continued investments in the over 200,000 Starbucks partners who wear the green apron every day continues to build equity in the Starbucks brand and strengthen our connection to customers in every market in which we operate.” 

[Source: Starbucks]


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Mary Shaw