Based on information found in a tweet, people everywhere are starting to talk about the major overhaul of the Starbucks MyStarbucksRewards program. Previously, I hinted about new rewards here. Under the new system, slated to begin “early April,” customers will earn 2 stars per every dollar spent in a Starbucks store, or Starbucks-owned and operated businesses, such as Teavana, Evolution Fresh stores, Roy Street Coffee and Tea, and the Seattle Roastery. (That’s the case now – you earn stars at all of those businesses too.)
To get a reward, you’ll need to be at Gold Reward level, and earn 125 stars. Most of the time, this will mean spending $62.50. However, given that Starbucks does promotions like “star dashes” or other promos, it might be less money than $62.50 at times. The new flyer in the image talks about monthly double star days happening. The new program is simplified so that there are now just two reward levels: Green Level and Gold Level.
By the way, about one year ago, I predicted this change: In April 2015, I said that stars would eventually be based upon dollars spent and that it should take around $60 to earn a reward (actually I predicted $60 to $80). I guessed it would happen within 12 months.
This new program will be so much better: Rewards are more fair across all the Starbucks businesses. Teavana teas add up quickly and their average ticket is definitely higher than Starbucks. There will be no incentive to create multiple transactions. It makes sense that the person who buys an expensive Reserve coffee, or a Sowden Softbrew, should earn more stars than the person buying one single cookie or cake pop. This is better for large families that come to Starbucks together and an adult is paying for everyone’s treats. This incentivizes buying larger purchases like mugs and more!
I’m happy for the change. If the past is a predictor for the future, people will still come to Starbucks. The current rewards program has been through many changes. I outlined the history of MyStarbucksRewards in this old article here (scroll to the bottom). For many people, they were Starbucks customers long before there were any rewards at all, and they’ll roll with the changes.
Granted, what I’m writing has not been verified by the Starbucks headquarters in Seattle yet. I’ll update this article when I get confirmation.
Let me know what you think! 🙂
(By the way, I really do wonder if the image above was ‘leaked’ early to get the word out and soften the blow? Also, based upon comments on social media comments I’m seeing, I do genuinely believe that this flyer in the picture is correct and real. I recognize this is an unofficial statement of new rewards but I think it’s right!)
Edit on February 20, 1016: As far as I’m concerned, this is real and confirmed. I’ve started getting private messages and more all indicating this is 100% right. One of my regular readers found the flyer available in a store in Missouri. Here’s one more look at the new My Starbucks Rewards flyer:
Edit February 20, 2016 again: Partners (meaning Starbucks employees) will earn stars at the rate of 3 per stars per dollar spent. (It’s been the case for many years now that Starbucks offered a unique rewards program for partners, offering exclusive promotions now and then). Customers earn 2 stars per dollar spent. When the program goes live, what ever stars you have will be multiplied by 11 to give you a new star total. So if I (Melody) have 5 stars when the new rewards program takes effect, I’ll have 55 stars under the new program.
Edit February 21, 2016: It looks official. Starbucks has announced a conference call to discuss loyalty program updates.
49 Comments
Comments are closed.
Socialize
For the barista side. Helps with the line. Some customers do ask for like ten separate transactions.
Love this! Stated in your previous article that this change was well needed, despite knowing it will not be well received. Everyone feels entitled to more from a FREE rewards system. I was a customer prior to MSR benefits and will continue to visit to support their impeccable support of the farmers that cultivate the beans we enjoy daily. A high quality product with humane business practices will always warm my heart.
I guess now a pound of coffee from starbucks will net you maybe 26 stars instead of two.
Not all bad. We will see how it really plays out.
Thanks Melody, great write up. I always apologize to the barista when I have separate orders so I can get my stars.
I assume the fact that I have “earned another year of Gold Level status” will not change. So I’ll get another year of Gold Level until 2017 based on the current program design, at which point I need 300 stars to continue gold. Hopefully the email will address the specifics of the transition.
“On launch day, the Stars in your current account will multiply to reflect the update.”
I wonder how that is going to work, as each star would be worth different values based on what someone spent (or possible worth nothing if they are bonus stars). Are they just going to look at what was spent for X number of transactions (which again, would vary based on how many stars someone has and if some of them are bonus stars)? I can see social media being flooded with people complaining that they didn’t receive enough stars in the conversion. I hope Starbucks has someone actually sit down and run through all the issues this could cause. The numerous problems that occurred with the ‘Starbucks For Life’ contest (that were never fixed), doesn’t give me a lot of confidence in Starbucks’ ability to provide a smooth transition.
What about receiving stars for purchasing Starbucks Coffee in the grocery store how will they know what you paid.
@James Peden – There’s no doubt, for quite a while, there will be a much larger incentive to buy whole bean inside the stores than the actual grocery. You get one star now with the star code inside the Starbucks in the grocery stores.
Eventually, Starbucks will print star codes with a I higher value – at least I assume that at some point in the future, you’ll go to the grocery and find coffee with something like a 20-star star code inside. You might not even know what the star code is programmed for.
It’s going to take a while to work through all the existing coffee on the shelves (I assume – actually I don’t know how long it takes to sell all the coffee out there in CPG plus all the coffee stored places waiting to be put on grocery shelves).
When all is said and done, eventually those star codes in the grocery store should be programmed to give you more stars.
That’s my guess.
[…] better than the current MSR one. “Rewards are more fair across all the Starbucks businesses,” StarbucksMelody wrote. “Teavana teas add up quickly and their average ticket is definitely higher than Starbucks. There […]
So I need to buy 30 $2 coffees for a free reward instead of the previous 12 . Buy 30 get 1 free? I understand this is a free rewards program and Starbucks doesn’t owe me anything but this is very little incentive to choose Starbucks over one of its competitors.
CZ beat me to it, that was the exact calculation I was going to work out and post. I am not going to switch from $2 brewed coffees to $5 liquid candy in a cup. Not today not ever. If I want Dairy Queen or Baskin Robbins I know where to find them.
To address Diele’s point: “Everyone feels entitled to more from a FREE rewards system.” I again refer to the two examples I used in the comments of the previous post about this, of the Air Miles program here in Canada, and Delta’s SkyMiles program. Sure, both programs are free, but if what used to get my a reward suddenly doesn’t, and I have to triple/quadruple/dectuple my spending in order to get the same reward I used to get, I’ll spend my money elsewhere. Under this new program I have no more incentive to go to Starbucks except when there’s a reasonable promo (in price and/or in star bonuses) to make it worth it to me. Just like how I no longer go out of my way to shop at Air Miles retailers nor do I go out of my way to fly Delta.
I will say that Sam is onto something here. The big winners here are home brewers. If you buy half pound bags of Reserve beans on a regular basis you can finally rack up some stars. The biggest losers are the $2 brewed coffee drinkers. I suspect my French presses, moka pot, ibrik, and Verismo (which I just recently got for next to nothing at a liquidation sale) will soon be getting a lot more work….
I know the brochure says brewed coffee refills, I hope that means iced coffee also . Does anyone know if iced coffee still means brewed coffee ?
Dan – That’s a very good question. I wonder about iced tea also. Initially, I had heard gossip (which appears to be pure gossip) that the entire refill perk would eliminated. I can imagine that the refill policy will be going through an overhaul too. I’m with you though – I’d like iced coffee, and iced tea to stay as refills.
Melody – the back page of the document says “Free brewed coffee & tea refills” in the list of new member benefits (which means green level) so that should mean the refill perk isn’t being eliminated (yet?). I usually got cold brew iced coffee as my free refill during warmer weather.
I understand this is a free rewards system that starbucks gives its customers and I’m not trying to sound entitled, but frankly speaking this new rewards system is terrible for single folks who visit starbucks for a quick caffeine fix in the mornings.
Myself for example, I go on my morning commute for a tall black pikes, that costs me just over $2. Under the old rewards system I’d get one freebie for every 12 purchases which means about $26. Under this new system I’d have to spend close to $70 for a freebie.
Same goes for my other starbucks beverage buys. I go for iced teas in the summer and even a venti of those costs just under $3 so that means instead of 12 tea purchases for just under $36 I’d have to buy over 40 iced teas now to reach the freebie threshold of 125 stars.
This does incentivize large purchases such as those who buy whole coffee at starbucks but its literally destroying any incentive for folks like me who pop in for a quick cup of coffee or an iced tea and leave.
I’m not saying you owe me anything starbucks but if this new system goes place I’ll have less incentive to visit your stores, I won’t boycott you of course but I’d definitely stop going out of my way to get my caffeine and tea at your stores when there are plenty of coffee beans and its a grind and Peets near me.
Let’s hope that Starbucks is not “fool” enough to start this on April 1 (April Fools Day). In fact even starting it anytime in the month of April could be considered a “fool”. I predict that Starbucks is in for a surprise, this “system” is going to be harder to manage and there will be as many, if not more complaints. First I can see is the allocation of points for fractional dollar purchases. Too often Starbucks has not followed common sense and good business practices, so be prepared. KISS and watch out when you fully open this bag of worms, what the right hand giveth the left hand takes away.
So customers like Jack and Tex, and to be truthful, me will be losing out on this new adjustment to the MSR program. I’m a drip coffee drinker who has an espresso beverage about once a month, and a frappuccino once per year. So I do rack up the points at a better rate per $ spent currently than most other customers. But I’m also a former partner, and I know that even in high drip coffee sales stores, we only make up a small percentage of customers. So this change is a benefit for the vast majority of customers.
Don’t know what I’m going to do about buying whole bean coffee though, I usually buy the 40oz bag from Costco, I might go back to buying pounds in the store.
They aren’t taking away my refill benefits, and with the promised double star days, and usual custom rewards, I’m going to be just fine with all these changes.
“plus new Gold Benefits” – it would be great if we could get the free soy option back or expand the scope of the free items (I’d like to see a $ value that I could use towards coffee for home brewing)
Chris, Starbucks would not lose as much of my business post-changeover (in terms of dollars spent) if they would turn one of their nearby stores (to my home or workplace) into a Reserve location. Then I would be getting $4-5 cups of Clover-brewed coffees regularly and buying half pound bags of beans from the Roastery more often. Otherwise, I will be restricting my visits to my local (non-Reserve) stores on double star, 50% off, or BOGO days. I don’t make special trips to Reserve shops, I’ll stop by if I happen to be near one and have the time. Which isn’t often.
Stanley, maybe for my next reward I should go to a Reserve store and tell the barista to fill a Venti frappuccino cup with whatever is the most expensive currently featured Roastery bean…. Does the free reward have to be liquid?
It was inevitable that it would get out early. We’re testing it in a small market first before it goes nation wide 🙂
Tex – you’re preaching to the choir on that one. I live in the middle of CA, with about 125 stores within a 90 minute drive from me, and I’ve got one Evening store (90 minutes away) and no Reserve stores in that area – all because there is a Regional VP who is not a Clover fan, and wants to push Frappuccinos in this area to subsidize his other stores in high rent cities . I have to enjoy those Clover beverages when I’m on vacation only, so I can understand your complaints.
I’m with Tex. My “regular” location is downtown and is convenient, but there are lots of other convenient options within easy walking distance — including one grocery store in a beautifully restored building. They have good coffee, outlets, a patio when weather permits, and a rewards program — buy nine and your 10th is free. Sure, it’s only a drip but at least it’s something.
On the plus side, my nearest store is moving to a bigger space down the street and there are rumors that the new location will be a reserve and evenings store. The current location is usually overcrowded with customers and non-customer squatters, so I avoid it. If they start serving reserve coffee and better food I could see stopping by more often for more than an occasional blended coffee-shake, but my weekly/monthly wallet share will still be shifting to other options for the lion’s share of my daily habit while Starbucks will be more of an occasional splurge.
Information is now available on the Starbucks homepage. Link at the top of the page.
Regarding GOLD membership: While I make purchases all year long I always spend quite bit $ @ Christmastime (Nov-Jan). So with the new rewards system ALL of those Stars expire in only 6 months?!! Does that mean all those Stars that I earn then will only count towards “another year of Gold” for 6 months? And how long does “another year of Gold” really last? Can I get many years of Gold (Membership) if I spend enough in a short period, considering SBux will soon be rewarding the $ spent vs. # purchases? For years I have purchased enough for a large number of “years of Gold”, yet think I am only getting credit for 1 year? Even when I go to “My Account” it is not clear to me how long my “gold status” last as it always shows much less time than actual Stars I have earned yet says I earned “another year”… And if you are wondering… No, I do NOT purchase any of those fancy-dancy cards released @ Christmas that cost $200+, or any of those kinds of flashy items for that matter, just a Santa-size bag of gifts & coffee 🙂
Other than purchasing $62.50 of bagged coffee beans at one time to get a free drink, I see little upside to this program. Buying 30 coffees to get one free is not an incentive for me. Is Starbucks trying to get people to ditch the loyalty program altogether? I’d imagine that there’s considerably more value in tracking the infrequent Starbucks customer at the cost of a 10 cent cup of coffee.
Should have said “100 stars” is a reward – that’s $50. Take me, a tall white mocha americana, at $3.12 (Seattle metro pricing). Right now, I get a free drink after spending $37.44 on my regular drink order. This is almost doubling that.
I agree it makes sense to reward higher purchase rate customers, or higher value, but this is not Starbucks answer. It’s an insult to loyal customers.
The brewed coffee regular customer will be disadvantaged – I’m glad I bought a Nespresso machine for my desk so I can quit drinking Starbucks altogether!
From a business traveller perspective: I generally go out of my way to take advantage of the Starbucks rewards program. (Over 1/2 of the time, I bypass more convenient locations to solicit a Starbucks store) I typically buy regular coffee (Blonde roast usually, sometimes with a shot of espresso). Under this program I lose big. But that’s fine and Starbucks has to do what they think is right for their business.
I’ll likely just no longer participate in the program going forward. I’ll still buy Starbucks coffee when it makes sense, but I’m not going to go out of my way for it, nor will it be my preferred coffee shop. The cost savings at non-starbucks vendors will probably save me more than I was saving using the rewards program anyway. It is what it is. Moving on ….
I switched to Italian roast Via every morning (can usually snag it in bulk for 50 cents/packet). I go about 3x a week for a second cup (Americano) or a soy flat white, and I’m a big fan of the spinach wraps. So usually my bill is around $7. They’re going to win big with people who buy food and snack, not just pricey Frappuccinos.
I’m a shareholder as well as customer and think the new program stinks. In Manhattan, forget about sitting down and enjoying a food purchase; all seats are taken early and occupied for the day by people writing their novel or whatever. So why buy food to eat awkwardly on the go? Us coffee-only purchasers lose out big.
I’m going to be watching this with great interest. I’m not sure how I feel about this yet as it pertains to my family, but I think a lot of people are going to be very angry about this when April comes around. People always say they are going to boycott Starbucks. I know I have said that in the past, and yet where have I gone? Most people that run into Starbucks, or use the drive thru on the way to work, aren’t going to want to give up that convenience, even if it comes at the cost of their Rewards. These people tend to be the drip drinkers. People either make coffee at home, or they don’t. Those that don’t will either go elsewhere for good, or most may eat crow when they realize that maybe going elsewhere, might be a more bitter pill to swallow. I don’t think there will be this huge swarm of people making the change to brew at home. People just like going to Starbucks, whether they stay or take it to go. I think Starbucks knows this, and for that reason, this may not even faze them one bit. Just my 2 cents about it……… For now!
Chgo – I think the old MSR had one major goal which we’re all overlooking here — put the competition out of business and get former non-Starbucks customers, into the store and ultimately, addicted to Starbucks. Here in Toronto, Starbucks’ main competition consists of Second Cup (the incumbent, but since Starbucks arrived in the 90’s, has never recovered), Tim Horton’s (Canada’s version of Dunkin Donuts – it has legions of addicts just like DD does), Timothy’s World Coffee (not related to Tim’s, and mostly seen in shopping malls), and of course McDonald’s McCafe. Over the last year or two it was obvious the MSR program was killing the others. You could see it in the desperation of their promos. McCafe gives away free coffee for a week a few times a year, deeply discounted their desserts-in-a-cup, mails out coupons all the time, etc. Second Cup finally started a buy 10 get 1 free stamp card (but their stores are still empty all the time). Timothy’s used to email out coupons but haven’t in ages. Pick any random weekday afternoon, among the above coffee shops, only Starbucks and Tim’s have lineups. The others are all but deserted. Weekends, where do all the high school kids go for their dessert in a cup fix? Yep, Starbucks for $5 fraps. Not McDonald’s, Wendy’s, Tim’s, Dairy Queen or Baskin Robbins. They’re all at Starbucks. So, having won the war – not just for coffee but also dessert, now it’s time to recoup whatever profits they might have lost under the old plan. Which brings us to the new plan.
Unfortunately, I just drink tall mistos and iced tea and their price points in So Cal are $3.05 and $3.25. Clearly, the new rewards program isn’t geared toward me. In order to get a free reward, I now need to spend between $61 to 65. The old program had me spending $36.60 to 38/39 or so. Going to Starbucks was a treat for me — even buying something as “cheap” as a $3 misto , I thought of it as a genuine treat. Hitting Gold status — around $92 was a delight for me . Getting to Gold with the new rewards program is going to cost at least $153 now. That’s a lot of money for some people. I’m happy that people with more means and can spend more with every Starbucks visit will get better rewards. It’s going to be hardship and a very rare thing to go to a Starbucks from April onwards for “regular” folk .
h.
Bottom line: Regulars & fans that love their “free” drink/food are NOT going to be Happy Campers, or @ least as happy as before. Question is, what % of customers are Reward Members? Because Starbucks must realize that they are going to lose some (actually possibly a lot) of that business, so it must make $ense, or surly they wouldn’t make all these changes? Is Starbux actually losing $ on 12 stars = “free” drink? Cos if it ain’t broke Starbux, don’t…
Starbuxgal – I think too many customers either don’t know about (M)SR, or just ignore its existence, or whatever. I cringe whenever I see somebody at Starbucks making an expensive order (say, espresso drink or frap plus food items plus maybe some beans to take home) and just pay for it with credit, debit, or cash…. when they would have racked up a lot of stars had they been using the Starbucks Card all along. These people will be unaffected by the change and Starbucks can continue to expect and rely on their business. It’s those that have played the MSR game to their advantage (wait for promos before buying espressos/fraps/food, only buy tall brewed when there isn’t a promo, especially for star dashes, get at least 2 refills per visit) that are possibly going to reduce their Starbucks spending as a result. I definitely fall in that camp.
Tex – and others not cheering the April Fools changes to rewards: I have a hunch that there will be more Gold Members no longer playing the game than Starbucks thinks there will be. Sure there will still be lots of regular customers but there will suddenly be more than usual missing in action too. Those of you that do stop going for your regular brew – you’ll probably get extra-special bonus stars offerings to lure you back that the other Gold members don’t.
Starbuxgal – “Those of you that do stop going for your regular brew – you’ll probably get extra-special bonus stars offerings to lure you back that the other Gold members don’t.” I’m definitely going to be testing that for you 🙂 The thing is, this is a net win for SBUX if they suddenly lose Gold members who earned it on $2 talls. Those ex-Golds will be replaced by new Gold members who earn it on $5 fraps (and have to spend a lot more to get a free $5 frap, since unlikely those kids would know nor care how to get value like 36 ristrettos in a venti). All part of the big number-crunching exercise that brought them to this.
I kind of feel like that we’ve talked this at length. If the past is any predictor of the future, this will do nothing in terms of losing or gaining Starbucks customers. Starbucks thrived when its made drastic changes to the Rewards program in the past, like when it removed free soy milk and free syrups.
In my humble opinion, it is strange that the brewed coffee drinkers feel that they should earn rewards at the same pace as those who buy merchandise, bistro boxes, paninis, and more expensive items.
In one FB group, one person suggested the idea that maybe there should be a ‘brewed coffee card’ – an actual card. The problem is that there would be ambiguity with that. What size? What happens when you add syrups to your coffee? Still, maybe there should be a promo card (at least for a while) that if you buy 12 Tall Brewed Coffees (or any larger size), then your 13th Tall brewed coffee is free – good for iced coffee or hot coffee only.
Melody – ” If the past is any predictor of the future, this will do nothing in terms of losing or gaining Starbucks customers.” See Ryanair and Spirit Airlines (and pretty much any airline based in the USA since 9/11) to see this in action. Gradually take away benefits (cut costs) while keep prices steady, gain profits. Starbucks is following their lead.
“maybe there should be a ‘brewed coffee card’ – an actual card.” That’s already what McCafe does (at least here in Canada, don’t know about USA). The coffee cups have a peel-off sticker which you stick on your wallet sized card. Once you have 7 stickers on that card, you can redeem for a free McCafe beverage. They even had ads featuring people ordering the expensive latte drinks for their free one after getting 7 small brewed.
Under MSR, we currently have the equivalent of 12 stickers for a free drink. But under SR you’ll need 63 stickers for a free one. Surely you can’t defend that as an improvement for the CUSTOMER experience. It’s surely an improvement for the company…
Oh, Starbucks, I’m back home in San Francisco for a few days and went in to my local Philz. Got chatting with the barista, who was well aware of the changes coming to Starbucks Reward Program. He says he’s already seen and heard from a number of disgruntled Starbucks customers, who feel they have been put out on an iceberg by this new program and now won’t go out of their way to frequent Starbucks. Add me to that list. My purchases may not be large –a Venti Earl Grey tea and a Petite Vanilla Bean Scone once or twice a day — but I’ll take my money where it is appreciated and Philz is apparently working on just that.
Interesting. Just got a Customer Satisfaction Survey for the Starbucks I went in to yesterday. While I frequently get these surveys, this one also had questions about what changes I knew were coming to their Reward Program and whether or not these changes would keep me as a customer. Are they listening?
Lyddy – They only listen to money. And I hope the “analysts” are wrong with their prediction that this is going to be some huge windfall for SBUX. If they’re right, at least I can honestly say they didn’t get away with it using my money. I’m trying to figure out how best to play the new game, but one thing’s for certain, April 11 is when I buy my last beverage at Starbucks that isn’t on a promo.
Tex,
I’m with you, buddy. And I wonder how Starbucks will be affected like people like me who keep at least a $50 balance on their card all the time. No longer.
Lyddy – since I’m going all-in with home brewing after the changeover, one idea I have in mind is to only shop on my double star day and limit my purchases to two bags of reserve coffee. Assuming each bag is $20, that’s $40 x 2 stars per dollar x2 (double day) = 160 stars. To me that’s a lot better value than wasting $40 on 8 $5 candies-in-a-cup (not that I could drink 8 of them in one day) or 8 $5 reserve Ventis (again, not like I could drink that anyway). I already told the baristas at my local store that they won’t be seeing me after April 11, and I said it’s because of the new program and their lack of reserve. The look on their faces showed resignation; I must not be the only one who’s said that.
Tex – “only shop on my double star day and limit my purchases to two bags of reserve coffee. Assuming each bag is $20, that’s $40 x 2 stars per dollar x2 (double day) = 160 stars.”
That’s a FAB idea – thanks for sharing!! I am going to consider doing something like that too instead of all those $5 “candy in a cup”…
This reward change thing has been an awakening of sorts for me as I admit to not playing the game @ all well as you have, but will certainly pay more attention going forward.
Tex,
I like your ideas– all of them — but they won’t work for me. I am a tea drinker – hot and iced- and I could easily make that at home. I go to a coffee shop to people watch or strike up a conversation or just hang out. Maybe I need to get a better life, but that’s the truth about why I’ve been going to Starbucks. I’m back in Canada now for a couple of more months, but while I was home in San Francisco, I scoped out a few coffee places closer to me. Philz and Blue Bottle are both interesting but Cafe Trieste in North Beach gets my vote. Only a two block walk from home, on my way to Pug meetup in Washington Square, the baristas are great, food is WAY better than Starbucks, the place has loads of ambience and a constantly changing cast of characters. Come April 12, addio Starbucks, grandi abbracci Cafe Trieste.
I guess I’m one of the rare ones who doesn’t quite have a problem with this change. As someone who always gets a grande latte with some kind of calories-don’t-count syrup and a pastry or sandwich, I’m always spending $7 to $13 (or so). I think this really hurts folks who just buy a small cup of brewed, but if you spend a lot in a single visit or, yes, by your ground coffee there, you’ll likely earn your stars just as quickly.