Starbucks (NASDAQ: SBUX) It is leveraging its extensive data systems to offer a more compelling rewards program for loyalty members. Starting in the fall, the company announced Tuesday, members will have more ways to pay and earn stars to get free drinks.
Currently, the only way for Starbucks members to reward stars is when they pre-fill a Starbucks card and use it to pay.
Starting this fall, the coffee giant will offer members in the US and Canada the option to pay with credit or debit cards or certain mobile wallets. Customers will be able to keep those payment methods in the Starbucks app and scan them to pay using their chosen payment method, or they can link the payment methods to their account and still earn points.
Members earn two stars for every dollar spent with a prepaid Starbucks card or gift card, and they will earn one star for every dollar spent using other methods under the new system. (A minimum of 25 stars earns an “upgrade” to a drink order.)
“Our customers have shared with us that they would like to have more options to pay and earn Stars on the app as a Starbucks Rewards member, in addition to the Starbucks Card,” said chief marketing officer, Brady Brewer. “We hope that the expansion of payment options will appeal to an even broader customer audience and deepen engagement with our members.”
The Starbucks app is one of the most widely used apps in the US, ranked for a while as number 1 before being surpassed by Apple, according to eMarketer. The app offers multiple order and payment methods, including mobile orders and payments, and contactless payments.