Starbucks Deepens their Share of the Consumer Wallet

Starbucks has done it again, with another financial tool to earn Starbucks “Stars”, which puts them in a unique positon as one of the top loyalty brands in the nation. How many other retail companies can you think of that offer a traditional rewards, credit card rewards and now prepaid debit rewards … there are very few.

This is a perfect example of how customer experience (CX) can drive additional business through a highly integrated system that manages all rewards from three different channels into one.  As a consumer I do not want to worry about having the proper card with me (the one that actually earned the points) when I choose to redeem my “Stars” at any Starbuck location.  Its ingenious. And the way American’s enjoy their Starbucks beverages it’s a win win every time.

“We want to offer Starbucks customers a flexible card that delivers more Star-earning potential in the fastest way possible,” says Jennifer Roberts, head of Digital Products for Chase. “The new Starbucks Rewards Visa Prepaid Card is perfect for Starbucks fans who want a simple way to pay and get rewarded for everyday purchases.”

Benefits of the Starbucks Rewards Visa Prepaid Card include:

  • Bonus Stars: 125 Bonus Stars the first time you use your Starbucks Rewards Visa Prepaid Card to load $10 or more to your registered Starbucks Card (equal to one food or drink Reward)
  • More Stars: 1 Star for every $10 on purchases made with the Starbucks Rewards Visa Prepaid Card, everywhere Visa is accepted
  • Instant Gold Status: Cardholders will automatically receive Gold Status within the Starbucks Rewards program
  • No Monthly, Annual or Reload fees
  • Chase Zero Liability Protection
  • FDIC Insured

“As we continue to expand and strengthen our digital relationships with customers, we want to make sure we’re providing choices that are both rewarding and meet their preferences in how they engage with us,” says Matt Ryan, chief marketing officer for Starbucks. “This reloadable Visa Prepaid card is a unique and modern option that gives customers one more way to earn more Stars and Rewards through everyday spend, in a way they haven’t been able to before.”

In addition to being able to redeem Stars for beverages, Starbucks offers a way to earn stars without pushing a payment preference on the consumer. It is becoming all-inclusive on ways for consumers to enjoy their products regardless of the payment method, allowing all walks of life a way to enjoy Starbucks beverages as a benefits of their everyday spend.  Not to mention it can also be added to Starbuck’s mobile app.

Overview by Sue Brown, Director, Prepaid Advisory Service at Mercator Advisory Group.