New Starbucks Loyalty Program Requires Purchases For Most Rewards

Starbucks will merge its two rewards programs, Starbucks Card Rewards and Starbucks Gold, into a single program, My Starbucks Rewards. The new program, which requires more interactions before the benefits kick in than the current programs, will debut Dec. 26.

My Starbucks Rewards cherry picks from both previous programs. All of the schemes are based off stored-value cards. Similar to the Starbucks Gold program, participants are given a free birthday beverage when the card is registered. And like the soon-to-be-phased-out Starbucks Card Rewards, My Starbucks Rewards will not have an annual fee.

But unlike the previous Card Rewards program, which offered immediate access to free selected syrups and soymilk, free brewed coffee refills, a free beverage with the purchase of a pound of whole beans and two hours of free wi-fi access, My Starbucks Rewards requires five visits before participants move up to “Green” level and these benefits become available.

Additionally, a 10% discount on most purchases offered through the Starbucks Gold Card seems to have fallen by the wayside, as has with the $25 annual fee charged for the Gold Card. The new program does have a “Gold” level – which does not have an annual fee. Customers earn Gold level after 30 visits, and receive, in addition to the Green level benefits, a free drink after every 15 purchases.

“Our Starbucks Card Rewards and Gold Card programs have been successful, but the more than three million members have asked us to create a simpler, easier to access program that rewards them based on their frequency,” Terry Davenport, senior VP of marketing for Starbucks said in a statement. “We believe the new My Starbucks Rewards program, which is free at all levels, will help deepen our relationship with our most loyal customers while also encouraging more customers to join the program.”

Consumers currently enrolled in Starbucks Gold or Starbucks Card Rewards will be automatically enrolled in the new program beginning in January 2010. Their purchase histories will determine whether they are enrolled at Green or Gold levels.

According to Starbucks, Gold members whose memberships are due to expire this year will have their memberships – and their 10% discounts – extended through Dec. 31. All other Gold members who signed up after Jan. 1, 2009, will receive the discount for their full membership term of 12 months and will automatically be enrolled at the Gold level of the new program upon expiration.