In an effort to streamline its rewards program, Starbucks has announced it will phase out its two-tier loyalty system and move to a single loyalty card program with no membership fees.
As it stands now, Starbucks has two rewards programs. Starbuck Card Rewards is essentially a gift card with perks like free wi-fi access, refills, and syrups or shots. The next step up for frequent customers was the Starbucks Gold Card. It carried a $25 annual fee and entitles customers to a series of special discounts, including 10 percent off each purchase -- which not everyone saw as a winning proposition for the members.
The new system, My Starbucks Rewards, launches on December 26. Those who are currently enrolled in
either of the old loyalty programs will be shifted to the new card by
January 2010. Some of the old perks remain, like a free birthday drink, but a few new wrinkles will be in place.
A punch-card system lets members get a free drink after five purchases and another at fifteen; thirty purchases earns the gold level.
Starbucks has said consumer demand let it to move away
from a membership fee-based system to one that rewards frequent
customers. But perhaps it's a lack of demand that's spurring them to try to lure in new customers with the possibility of additional
perks.
[Image via Flickr: bperch]
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