There are Starbucks Card rewards all over the globe, but the perks vary from place to place. I do not profess to be a Starbucks card expert. I think I understand the U.S. rewards backwards and forwards, but I am far less adept at talking about the international versions. Both in an email from a curious reader, and in my twitter stream, the new UK Starbucks Rewards are a hot topic. As far as I know, these UK Starbucks Card perks launch tomorrow:
In an email, a reader wrote me that she has called the UK Customer Service, and was told that the new UK program is stars per transactions, and so in order to maximize stars, items must be rung up separately. I am amazed that Starbucks is expanding that model. It will frustrate many customers for obvious reasons that have previously been discussed on this blog. I also notice that UK customers can get a free add shot in their beverage. My understanding is that the UK market is very different in terms of what customers order. As I have heard (all of this is anecdotal, heard from many folks), UK customers tends to order a very high percentage of for-here ware beverages, and that they use very few syrups. The “flat white” which is almost an extremely traditional, very small latte, launched with success in the UK. For example, one partner who took a vacation to the UK in 2011, told me that he saw that the UK offers ‘Irish Cream’ as a syrup offering, but partners told him that it just sits, and almost no one orders it. In addition, the competition in the UK is different than the US, and I have heard that other coffee shops all offer two shots as standard in an 8 to 12 ounce drink. Smaller sizes are the norm.
The email reader who wrote me indicated that the free tall beverage with bean purchase has totally been withdrawn as a perk. Interestingly, in the UK there previously were a number of limitations on what can be ordered as a free tall beverage, and Frappuccinos were completely excluded. I also notice that it takes 50 stars to get to gold in the UK.
The whole thing is a bit fascinating to me. I am typing this out in a massive rush, so please excuse the many grammar mistakes and typos. I’ve done no proofreading! But I thought it would be interesting for my readers (who are mostly in the US) to see what’s coming tomorrow (January 5, 2012) to the UK. I am still working on understanding that chart! LOL
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The reason that I signed up for the Starbucks card in the first place was the free WiFi perk, that seems to have been replaced by a one-click connect. I don’t really begrudge paying an extra 50p for a filter coffee when I’m probably going to nurse it for an hour and use lots of WiFi while I’m working. Costa don’t provide free WiFi, I’m not sure about Nero and while I have a few local indie favourites who also have WiFi (e.g. BeanScene in Glasgow) I can’t be in Glasgow every day.
I’m also surprised/disappointed that they’ve promoted this as “no one losing benefits” as that’s clearly not the case. It does seem to have generated a lot of bad feeling on places like this site and the Facebook page. Will this be a case-study for future marketing students as an example of “how not to manage change”?
Having said that it’s an OK system – I never manage to fill those stamp cards up at places like Krispy Kreme or McDonalds as I lose them after the first few stamps and have to start again. So getting my voucher mailed to me will be a benefit. I regularly get syrups and extra shots so I’m glad that I’ll be on gold level straight away and keep those benefits too.
Amazing news coverage today:
Starbucks faces backlash over My Rewards:
Starbucks has been slammed by customers angry about losing out on benefits under the new loyalty scheme My Rewards.
http://www.marketingweek.co.uk/sectors/food-and-drink/starbucks-faces-backlash-over-my-rewards/3033115.article
WOW!
Thanks Patrick for passing this along. Read it very quickly but it seems that SB is just giving the standard answers to the complaints. I wonder if complaints continue if SB will change their rewards program in the UK.
@Purple1 here’s hoping. I’m sure complaints will continue in waves. First those angry with the change, then in a months time when people realise the free drink isn’t immediate, but via voucher (with time limits) then in 1 year when people fall out of Gold status.
Ever ever I’ll continue to highlight the change (on a daily basis to Starbucks). Gotta keep the momentum up 🙂
Patrick, thanks for the link to that article. I’m not sure I like the dismissive tone to just say there is a small vocal group on social media. Though, one thing I know is that the scale of Starbucks is so big, they can do a lot before it damages them. When you’re that big, you’ve simply got more buffer room. I guess we will find out if customers like earning stars more than they like 50p off the brewed coffee.
I like the free drink voucher by post, as I can save it for when I’m drinking a more expensive drink. Like someone else said, I always lose stamp cards… I take more care with the Starbucks cards because there’s money on it.
Dave is absolutely right that the new rewards programme benefits everyone. Even people who just buy fruit bread every morning on their way to work. Personally, I would have kept the free tall drink with the purchase of coffee beans or Via, but why should filter coffee drinkers get both a free drink every 15 and 50p off every purchase.
Yes, I’m disappointed that filter coffee isn’t discounted any more, but ultimately prices go up, discounts aren’t guaranteed. If you’re that concerned about having a cheap cup of filter coffee make it at home. Starbucks is a luxury. I’m annoyed with the 10% (40p) increase in my daily train fare, but I don’t think the train company would take me very seriously if I ranted about it on their website.
@cardiff barista
Free vouchers have expiry dates of 1 month. Post can get lost!
So 80c/50c off filter and a Star is unfair?
Starbucks a luxury, so why cheapen it with a locality scheme open to everyone?
Train Fare increasing – perhaps that’s the problem, people aren’t passionate or bothered enough to complain. Thankfully I like complaining!
Also note, Starbucks Ireland used this to increase prices too. €2.20 for a tall drip black coffee which cost me €1.05 with discounts is rather steep.
Thankfully I buy the majority of my beans in America where I got free tall drink and a larger bag for cheaper.
And more coverage:
Changes to Starbucks’ loyalty scheme has upset a minority. Read Michael Barnett’s thoughts on “broken promises” – Beware the loyalty scheme re-brand. http://www.marketingweek.co.uk/disciplines/data-strategy/beware-the-loyalty-scheme-rebrand/3033146.article
Starbucks today admitted customers have “lost under this new scheme” in an official statement released this morning. http://starbucks.co.uk/blog/my-starbucks-rewards-uki/1137
And in other coverage, the UK National Press has picked up on the Story, with coverage by the Independent Newspaper http://www.independent.co.uk/life-style/gadgets-and-tech/news/starbucks-customers-react-angrily-to-loyalty-scheme-changes-6288008.html
@patrick – That is an interestng official statement. It seems more transparent than when Starbucks transitioned people from the black 10% discount card, to the current star program. Basically, Starbucks wants to answer the demand that customers earn free drinks, but are trying to add that drink benefit as inexpensively as possible – And I suppose that is understandable since these rewards are expensive. Of course in any scheme where you earn a free lunch or a free drink, you’ve paid for it otherwise. There’s no such thing as a free lunch. And I feel for the drip coffee drinkers! I’d rather have the 50p reward – It’s immediate (no waiting for the card), and valuable.
Hey,
Just read this quickly so I apologise if this has been mentioned.
I’m a partner in the UK and was wondering if the free tall beverage had been removed from the rewards program as the material we were given did not mention it.
Anyway, this morning, I sold a pack of Via and the tall drink that the customer ordered was taken off the transaction, so I guess that reward still exists.
Great news for all of our UK customers!
@DadCooks – I wasn’t sure wear to put this comment – You and I had talked about the US vers of the MyStarbucksRewards program changing to limit stars per hour – You had heard that, and coincidentally, international versions (Mexico?) limit stars per day. I just heard back from my contact person at the SSC, and I hear that there are no changes coming down the pipe for the US program anytime soon.
@Melody — thanks for getting an official response.