Its a global change though India is already on a ‘by spend’ model. Brand receives flak from customers.
Terming it the ‘#1 customer request‘ to offer points by spends, not visits, Starbucks is all set to rollout a major change to its Rewards programme.
From April 1, 2016, the My Starbucks Rewards becomes Starbucks Rewards, a new programme with more Stars awarded based on what customers buy, no matter how often they visit. This means more stars for every dollar they spend, not just on coffee but everything including gifts & products.
In USD terms, members will earn 2 Stars for every USD 1 spent. When ‘Gold’ members earn 125 Stars, they’ll earn a reward which they can redeem for anything on the menu. Also upgraded is the ‘Welcome’ level members to ‘Green’ level so customers can start enjoying more benefits of membership right away. The Green level will be done away with and Gold members get their additional incentives with Double-star days.
However, Starbucks India is already on a ‘Stars for Spend’ model, where there ratio is 1 Star for INR 300/-, including taxes. All three levels, Welcome, Green and Gold are offered. The brand is yet to state if there are any changes to its Indian programme.
In its other markets, where the old model is predominant, the brand is coming in for severe criticism on social media. As many people have pointed out on Twitter, customers who usually purchase a USD 2 cup of coffee per day — like a regular or decaf Pike — will go from earning a free drink for every USD 24.00 they spend to earning one with every USD 62.50.
