A Wren Says

I scanned my Starbucks app at the counter. “Oh, you’re a reserve member!,” the barista exclaimed. I sheepishly accepted the statement, while I did the calculations in my head. “Just how much do I spend here every year?” We’ll save that budget crisis and point out a specific feature of the new Starbucks loyalty tier system. It’s based on points not spend.

The three tiers – Green, Gold, and Reserve— are about points earned. Yes, that could mean that I spend over $2,500 per year on coffees. But more true is that I have gotten good at maximizing my points earned. I take advantage of double and triple stars days. I bring my own cup. I take part in the individual challenges. I play the semi-annual games. By doing those things, I accelerate my point earning rate. And then I have to admit, I do end up spending more money.

What I find interesting about this is that it is adapting two different ideas of brand loyalty. I believe I’m loyal to the brand because I spend money there. And that is supplemented by the idea that I believe I’m loyal to the brand because I do certain things.

All the updated changes aside, I am personally intrigued that this is rewarding engagement with the brand, and not just dollars spent. They are rewarding you for behaviors that lead to more points earned, some of that happens to be spending money.

I’m looking forward to seeing how all of these changes play out and affect my experience with the brand over the next year. But what about you? How do you feel about Starbucks as a brand? How would you rank your loyalty to this or other brands?