Starbucks seeking Loyalty through Rewards Card

RewardsThis week Starbucks Coffee launched their loyalty scheme on a Starbucks Rewards Card.  Rewards will be in the form of added extras that customers can have with their coffee which include syrup or an extra shot.  Starbucks customers must register their card online which will obviously be added to the Starbucks database.  To entice customers to register, a free coffee voucher will be given to customers once registered.

So thinking about competitors, Caffe Nero have for many years had a simple loyalty card where you get your 10th coffee for free.  Caffe Nero don’t even ask for your personal details to build a database from, which is a good thing if you’re conscious of providing details.

Starbucks on the other hand could be looking at a more customer behaviour and buying habits approach by introducing this rewards card that will probably mean Starbucks will be contacting customers in a similar fashion as the likes of Tesco and Boots.

However, I personally see how the Starbucks Reward Card is more attractive than what Caffe Nero offer.  I always look forward to my 10th coffee for free.  Whereas with Starbucks, customers will almost feel as if they need to take an extra shot or a free flavoured syrup.  Time will tell how Stabucks will use the data they collect from the registrations.

The question is… does this actually add any value to customers and will this actually make customers loyal to the brand?

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