Starbucks – Retention and Referrals Made Easy via Mobile App

I frequent Starbucks, on average, 3 times per week. The staff is typically friendly, it’s a great place to do (school) work, the drinks and treats are always consistent, and the frequently changing seasonal beverages and food items are delicious.

The Starbucks mobile phone app makes it easy to purchase, offers rewards, provides updates, and facilitates referrals.

• Easy to Purchase: The app allows me to pay directly via my phone. It allows easy reload options, with an automatic refill from my stored credit card information. The app also makes it easy to consolidate all of your various Starbucks gift cards onto just one card.
• Rewards: As soon as you register, all My Starbucks Rewards members receive a free drink or treat on their birthday. There are also different rewards levels depending on how often you make purchases using your Starbucks app. There is a “green” introductory level and a gold “elite” level. With the green level, you are given free refills in the store. Once you reach the gold level, you are given a personalized card that lets everybody know you’re one of their favorite customers, as well as special offers.  Also, for each 12 items that you purchase, you receive a free drink or treat.
• Updates: Each week, a “Pick of The Week” is sent to you, typically music. Notifications of special promotions and new programs are also sent to you.
• Referrals: They make it easy to refer people (not that people necessarily need referrals), by allowing you to send gift cards directly through the app to the recipient’s email address.

Since there are a lot of independent coffee shops around Seattle, and since coffee is, for the most part, the same everywhere, the barriers to me leaving are quite small. However, Starbucks is everywhere (which almost guarantees that I will visit a Starbucks versus an independent coffee shop) and they have made it desirable for me to frequent given their rewards program.