Starbucks revamps loyalty program with three tiers — here are the new

Starbucks revamps loyalty program with three tiers — here are the new

Starbucks will introduce a new three-tiered system to its US loyalty program on March 10, chief model officer Tressie Lieberman announced at the espresso chain’s investor day on Thursday.

Starbucks’ reward program, which launched in 2009, is one among the oldest and largest in the restaurant trade, consultants say.

The company reported 35.5 million lively members on Wednesday.

Starbucks’ reward program — newly revamped — is one among the oldest and largest in the restaurant trade. AP

CEO Brian Niccol, employed in September 2024, has been specializing in reducing again broad reductions. “It’s through better engagement that we’re getting people to be active, not through discounting and couponing, but rather giving people the Starbucks experience,” he said in an earnings name Wednesday.

Lieberman said at the investor event that if half of loyalty members do one more transaction per 12 months, it will generate $150 million in annual income.

The upcoming three tiers of “green”, “gold” and “reserve” will substitute the current scheme which has had no bands since 2019.

Each tier provides loyalty customers more factors for reductions for every greenback spent.

The top “reserve” tier also contains alternatives for paid journeys to Tokyo, Milan or Costa Rica, the company said.

Among other new perks is a choose day of the month the place customization, such as an additional shot of espresso, are free.

Among other new perks is a choose day of the month the place customization, such as an additional shot of espresso, are free. REUTERS

Kate Hogenson, principal advisor at the Mallett Group, a brand-loyalty consulting agency, said the best loyalty packages are those that create emotional reminiscences for customers, such as free merchandise, merchandise or experiences.

She said tiered rewards are more widespread in the journey trade and are uncommon in the restaurant trade because it’s more durable to create a different experience between the tiers.

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