Starbucks Tests Exclusive Rewards Benefits for Only its Most Valuable Customers – CoffeeTalk

In March, Starbucks revamped its loyalty program, introducing a three-tier system—Green, Gold, and Reserve—that rewards customers based on their spending habits. This change addresses a past flaw where all customers were treated similarly, potentially undermining loyalty. One noteworthy addition is the physical Reserve card sent to top-tier members, which, despite having no additional perks compared to the app, provides a tangible acknowledgment of their loyalty.

The Reserve card can be used like a prepaid card, allowing customers to load money and earn rewards. Importantly, it embodies a concept of value that goes beyond simple discounts or points. Physical items like this card signal recognition and value from the brand. The production and mailing of these cards incur costs for Starbucks, but the company deems this investment worthwhile to enhance customer relations.

Drawing parallels from Delta Air Lines, which provides a metal bag tag to its Diamond Medallion members, the act of physically acknowledging a customer reinforces their loyalty through recognition—a sentiment that cannot be replicated digitally. Starbucks CEO Brian Niccol aims to restore the brand’s premium image by creating deeper emotional connections with customers.

Overall, the Reserve card represents more than a loyalty tool; it signifies the company’s acknowledgment of high-spending customers, fostering a relationship that transcends mere transactional interactions. This approach reinforces customer loyalty by making customers feel valued in a personalized and memorable way.

Read More @ Inc.