Inside Starbucks' new loyalty program
Starbucks is promising ‘more meaningful value’ for its 35 million US rewards members. But some loyal customers say the new system is little more than a clever way to get them to spend more. The coffee giant just unveiled a revamped Starbucks Rewards program that launches March 10, introducing three tiers: green, gold and reserve. The higher your tier, the faster you earn stars - and the more perks you unlock. But on Reddit , some customers are already doing the math and calling foul. ‘Everything sounds like a good deal for people that can’t do math,’ a Reddit user wrote, accusing the chain of dressing up modest rewards in flashy marketing language.New Tiered Star Earnings Structure Under the new structure, members earn one star per dollar at the green level, 1.2 stars at gold and 1.7 stars at reserve. Under the current system, members earn two stars per dollar preloaded to their account or one star per dollar if they pay as they go. The overhaul also introduces a new 60-star redemption option that lets customers take $2 off any purchase. That is alongside existing rewards like customizing a drink for 25 stars, a croissant for 100, a latte for 200 or a sandwich for 300. On paper, it sounds like a quick win. But at the base green earning rate of one star per dollar, it requires spending $60 to unlock that $2 discount - before you spend again to redeem it.Customer Backlash Over the 60-Star Discount ‘The whole 60 stars for $2 off is just a more appealing way of saying spend $60 and then spend more money to get $2 off,’ one user wrote. ‘It isn’t a good deal.’ The new 60 stars for $2 off is on top of the existing redemption rates like a drink customization for 25 stars, a brewed coffee or croissant for 100, a latte for 200 or a sandwich for 300. These all remain. To reach gold status, members must earn 500 stars in a 12-month period - the equivalent of roughly $500 in spending at the base earning rate. Reserve status, which has extra perks like double star days, requires 2,500 stars in a year. At the standard earning pace, that means about $2,500 in annual spending to qualify - or nearly $50 a week. Skeptics question how realistic that climb is. ‘You’d have to spend nearly $50 a week for a year to even see that extra 0.7 stars,’ one critic wrote. ‘The stuff you get is essentially cheap prizes from the arcade.’ Starbucks says the overhaul is part of its ‘Back to Starbucks’ strategy, aimed at deepening customer connection and increasing frequency. The company first introduced a version of the 'Starbucks Card' reward program in 2008, which became My Starbucks Rewards the following year. The spending-based system best-known by customers today became standard in 2016. Recent changes, including removing the fan-favorite perk of earning 25 stars for using personal cups in the US left some feeling frustrated by the coffee giant. 'Everyone wants the old Starbucks, but old Starbucks didn't do any rewards programs,' one Reddit user argued. 'The thought was that if our quality and service was good, we didn't need to bribe customers to keep coming back.' Changes to Starbucks Rewards are expected and even encouraged by consumers, according to industry experts. Industrial designer Ravi Sawhney told Daily Mail that tiered loyalty programs work because they 'tap into something deeply human.' 'We want recognition, progress, and belonging,' he said. 'When you introduce levels, customers shift from passive buyers to active participants chasing identity. It stops being about a free drink and starts being about advancement.' App users will find out which level they belong to on March 10, when the reimagined loyalty program takes effect.
