As the digital revolution expands the number of marketing channels, brands are seeing a tremendous blurring of the lines between traditional loyalty programs, digital transformations, and customer experience initiatives. In this new competitive landscape, all brands must adopt loyalty initiatives without traditional boundaries, shares, Guy CierzanManaging Partner, ICF Next.
No brand is perfect when it comes to loyalty these days, but Starbucks is doing a lot right.
For starters, their entire rewards program is housed on a mobile app that customers can also use to store payment info, purchase drinks, and order remotely. In this way, tangible customer interactions are seamlessly integrated in a digital ecosystem with the rewards they may reap from those interactions.
Contrary to several airlines whose shift from distance to revenue-based loyalty programs have only made it harder, more expensive, and more complicated to achieve certain tier statuses than in the past Starbucks rewards enrollment is friction-less, engrained in signing into the app itself. Theres a reason the app accounted for 30% of all transactions last year, and holds more consumer cash than many banks.
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