In Response to Your Comments on My Starbucks Rewards

 Hi Everyone,

Thank you for your comments and feedback on the launch of My Starbucks Rewards - the new improved rewards program for our valued Starbucks Card members. We are very excited about this new program, because it incorporates many of the ideas we've heard from you and from our store Partners and provides even more value and ways to save.

From the day we launched MSI one of the top ideas has been "let me earn FREE beverages" - well, that is now easier than ever and is one of the most anticipated additions to this new program.

Here are some other improvements we've made based on your ideas:

  • "Lose the $25 annual fee". That is what it cost for annual Gold membership, and while some say they'll miss the 10% discount, more customers overwhelmingly preferred a program with NO FEE. In fact this was the #1 idea in our research and will open up membership to lots more customers.
  • "Two different programs are confusing". We heard this from both customers and our partners - in fact some of you told us you carry two cards to get the most savings.  So the new program will be easier to understand - the more you use your Starbucks Card the more benefits you earn.
  • "The more I visit, the more I should be recognized and rewarded"  We agree! So we created a simple to understand system awarding a "Star" for every time you visit and use your card. These Stars are tracked and earn you rewards and get you to the next level of benefits.
  • "I am already a member, That should count for something" ...and it does.  We really appreciate everyone who joined our program in its first year - with a special thanks to our inaugural Gold members. So current Rewards members get to start in our new Green level, and you special Gold Card members get to start in our new gold level...and will receive a new personalized gold card - it's quite cool!

We know it may take a little bit of time for everyone to get used to the improved program, but ultimately, our hope is that it is easier to understand and use. We wanted to be more inclusive and provide more benefits to more of our customers.

One last reminder - you must register your current card to be moved into our new program (many of you Gold Card members have not yet registered your card). Oh, and make sure we have your mail address, because that is how we'll get you your Reward Certificates like a free birthday beverage and other earned rewards.

Thank you again for all of your suggestions.  We are always looking for ways to improve our programs and your input makes a big difference. 

TD

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kjminton
11/6/2009 5:54 PM

You need to keep the 10% discount. That was the big draw for the the Gold Card. Is it true that there will no longer be free syrup and milk upgrades?

FotoMoto
11/6/2009 6:44 PM

This "response to our comments" has really convince me that I'm done with Starbucks.  It won't "take a little bit of time to get used to the UN-improved program"...for me, as I've said before in another thread, I'm done with Starbucks when my Gold Card benefits are gone. I'll miss my local baristas, but I won't miss all of the corporate crud that come down from above (e.g. if I never see another package of Via I'll be a very happy man!).

I think that some people involved with this program - who think it is "improved" and that it has "added benefits" - are  really drinking the Kool-Aid, so perhaps that is the next Starbucks beverage and promotion.  

See some of you later over at "the other guys" coffee shops.

uhuhkbhkjb
11/6/2009 6:50 PM

This blog entry is truly insulting to me.  The rewards aren't "improved" and they certainly don't provide "even more ways to save". That's absurd. If you really listened to our feedback, you would see the value in the 10% discount. It is very insulting to read "new improved system" throughout this entry when the only people it is better for are the people who are occasional buyers. Your loyal customers are getting ripped off. This decision is bad for business.

GreenT22
11/6/2009 7:06 PM

For those of us who order multiple items per transaction, there is little benefit to one star per transaction.  We will have to have each item rung up individually, no matter how much it slows down the order line, to really have the new program reflect our purchases -- 3 drinks = 3 stars, etc.  Free coffee or hot tea refills or extra shots of syrup is of no value to me.  I drink unsweetened green tea and hot chocolate only.  Make this reward program a benefit to all of us again.  So sad that you are causing so much dissatisfaction amongst your most loyal customers.

uhuhkbhkjb
11/6/2009 8:03 PM

Another thing that I forgot to mention is that you say that having a no fee system was "the number one idea". It may have been number one in terms of being posted more than anything else, but it was certainly not number one in terms of votes. Every time someone posted some of that "no fee" junk, it always ended up with negative points. I agree with Steve. The new program STINKS IN SPADES. You will lose more customers by this switch than you will gain. I have yet to hear even one person say that they prefer the new system. DOESN'T THAT TELL YOU PEOPLE SOMETHING??????????????????????

gridloch
11/6/2009 9:10 PM

You have got to be kidding. I'm sure people may have suggested removal of the $25 fee...but I doubt they wanted the 10% removed.  Please don't claim you are enhancing the program or rewarding me with this new program. I calculated that I spend upwards of over $4,500 per year at Starbucks (e.g. coffee, snacks, breakfast, lunch). My reward for being a loyal customer is a coffee coupon after 15 visits????. If Starbucks feels it needs to make more money by eliminating the program, just state it.

What I am and other loyal customers are now is angry.  We are not  stupid......and this is one corporate blunder that will spread bad press about Starbucks like wildfire.

I now have no incentive to seek out Starbucks.

You have left a bad taste in many of your customers mouths.

Anonymous
11/6/2009 9:17 PM

Terry, I feel like we are reading a sordid, real-life version of the Emperor Has No Clothes story...

My new Starbucks rewards...

"provides even more value and ways to save."

"while some say they'll miss the 10% discount"

I have been a loyal customer of Starbucks for over ten years; there is not a day that goes by that I do not purchase at least one cup of coffee, most days, I average two visits. And, I'm not just purchasing coffee for myself, most likely, I'm also picking up a cup for a coworker or two as well. I'm scared to do the math, but I've probably spent enough money on coffee  over the years to put a down payment on a home.

The introduction of the Gold Card and the 10% discount, was, for the first time a move on your company's part to thank its most loyal customers. Only people who would 'make good' on the Gold Card rewards deal were wise enough to spend the $25 in advance --  *those* individuals who spend hundreds of dollars in your stores each year. *Those* individuals who the baristas know by first name, who are at 'Bux' day in and day out, rain, sleet, snow, or hail, who grab a treat once in awhile along with their drink, and those who immediately think and run to Starbucks for birthday and holiday gift purchases. Importantly, *these* are also, most likely, the customers who keep coming back, despite the occasional cup of burnt Pike Place coffee, milk containers that have been sitting out too long, a dirty bathroom or two, a stale breakfast treat, a few long lines, you get the gist.

Granted, the reason why this discount program is being pulled is most likely due to the impact on the company's bottom line, rather than an interest in "listening to the customers."  Why would I want to forfeit my 10% discount and the savings I've received over the past 9 months, for a measly coupon in the mail that will provide a fraction of the discount I've received on a daily basis? And for the 'opportunity' to receive syrups I never use? Or soy milk I don't drink? Come on now, let's get real. (Cue Emperor and his apparel choice...)

Skirting around the reality of this situation, especially for customers like me, in your blog posts, compounded by the blatant failure to make note of the Rewards Program changes in stores, leaving Starbucks employees unaware and uniformed, all alongside the unnecessary hype over this new 'rewards' program designed to provide one tenth of the savings that the Gold Card provided, is a disheartening blow to your most loyal fan base, especially at a time when 10% goes such a long way.

I implore you, along with your colleagues to reevaluate the decision-making process behind the potential cessation of the Gold Card rewards program offering the 10% discount.  I cannot even begin to express my discontent and dissatisfaction with the  proposed changes to the Rewards Program, and sincerely hope that an alternative strategy can be discussed, devised and implemented, (i.e., continuing the discount program), in a genuine effort on Starbucks's behalf to truly 'reward' your most loyal customers.

Kittyn
11/7/2009 2:13 AM

I think it sounded so great untill I read that it is not available in Canada, WHAT????   I live in Vancouver area and we are one of the best supporters of Starbucks and we are not invited to enjoy these rewards?  I was part of the Gold pilot project and it did not even show up in Canada after launched.  I love my Starbucks but maybe it's time to look at a coffee place that does not discrimate.  There are many good ones that after buying 9 cups I would get one free and oh I more thing.... I think they are cheaper!  ; [

purple1
11/7/2009 5:16 AM

I agree that taking away the 10% discount of the gold card is wrong. And I am sure people do not want to be on long lines waiting for people to get the most stars they can get!!! And what about the request from a lot of us for free iced tea refills for those of us that stay in the store? I only drink iced green tea and have been asking forever (as others) as to why this can't be added as a reward.

betterbefore8
11/7/2009 7:54 AM

like others, I just spent 10min writing a comment that I'm sure you don't want anyway and 'puff'....into thin air!   no mental energy to do again now.  good for you.

Steve 3
11/7/2009 8:59 AM

!!

Breve
11/7/2009 9:46 AM

This is a very disappointing post by Starbucks. How would you not expect your MOST LOYAL of CUSTOMERS  not to be disappointed. This leaves a bitter taste in the mouths of many. Starbucks touted the "Gold Card" as something special for those loyal customers that would be willing the spend $25.00 for the privilege of a 10% discount, a birthday drink and other coupons and rewards....We were made to feel special...and now..poof it's gone....Seriously who is giving this company marketing advice??? Because all this company shows is disdain for it's most loyal of customers. For a company that was all about the "feel good"... why does this feel "so bad"?

DadCooks2
11/7/2009 10:21 AM

Sorry Terry, I will not drink your Kool-Aid.

Those that whined about having to pay for the Gold Card and could not figure out how to combine it with a Registered Card for maximum benefit are just the quality (NOT) customer that Starbucks now deserves.

Starbucks should have learned something from this MSI experiment--Starbucks cannot please all their customers all of the time, but Starbucks does not know just who the real customer is. Starbucks has paid big bucks for some internal and external consultants who have steered Starbucks in the wrong direction and Starbucks is going to find it very painful to get back on course, or go ahead and stay on this course and destroy the quality cachet that the Starbucks name used to be.

verrlara
11/7/2009 10:35 AM

I am relatively furious. I am a college student. I am on a limited budget. I bought the starbucks gold card shy a week before this whole new fing program came out. How am I suppose to feel? These free drink tickets are just tickets for me to go to Peets coffee and tea! At least they listen to their customers and don't royally piss them off every minute of every day!

sbx_bean
11/7/2009 1:08 PM

@Steve3 - I've removed a couple of your comments due to inappropriate language.  Please consider reposting in a more respectful manner.  Thank you.

flukes
11/7/2009 1:15 PM

I too am extremely disappointed with the new rewards program.  Starbucks would've been wiser to just raise the annual fee instead of removing the 10 percent discount.  I, for one, would've rather paid 30 or even 40 dollars and kept the 10 percent discount....I easily spend more than enough per year to recover my annual fee.  Obviously they have made a gigantic blunder, but they will not admit it or take it back at this point.  The only way they could even hope to lessen the blow would be to make it 1 star for EACH item purchased in the transaction.  Clearly that's not even close to our wonderful gold card before, but it's the very least they could do.  I was a Starbucks addict, but in these economic times, I feel that Starbucks lost the ball in a big way by not keeping me happy.  It was bad enough for them to gouge us with the price increase, but then to also take away the best incentive....BIG MISTAKE!  I still love my white chocolate mochas, but I've already downsized my purchases from once/twice a day to about twice a week and when my discount is gone, I likely will only visit occasionally.  It's sad that Starbucks has alienated an entire fan base of LOYAL customers in the hopes of saving their own bottom line.  Anyone in business knows that if you get rid of your clientele, you forfeit profits and it' even harder to get back the customers you lost.  

penny
11/7/2009 1:28 PM

Repeating the marketing materials for the new program really doesn't really address the issues raised in the comments to the blog post announcing the new program.

Tanya922 is probably right: Starbucks thinks the old Gold Card hurt the bottom line. I can do the math. Under the old Gold Card even having only a couple of espresso drinks a week would results in greater savings to me than the free drink after fifteen drinks (and I get more savings with other purchases). But with the Gold Card I typically buy food to go along with those drinks; before the gold card I rarely bought food so that represents additional revenue to Starbucks. I wonder how many Gold Card holders ended up buying items they wouldn't have if not for the discount?

Starbux
11/7/2009 2:13 PM

Terry:

I have to say that I admire your courage in posting what you did, knowing how unpopular the new rewards program is and knowing that it is a much worse program for loyal Starbucks customers than the current Gold Card.  It takes guts to defend the new program.  So, points for courage and for taking one for the team.

Overall, however, your post is disingenuous at best, and portions are simply not true.  Please don’t insult us by lying.  Case in point, your assertion that the new program “provides even more value and ways to save” is simply a lie.  The Gold Card provides a 10% discount on almost everything in the store (e.g., drinks, food, mugs, tumblers, CDs, tea bags, brewing equipment, gifts, ornaments, etc.).  At best, the new program provides the equivalent of a 6.67% discount, and only on drinks.  That is the best case scenario, which assumes one drink or other item per card transaction.  In reality, for anyone who purchases more than just a single drink, the effective discount is only a fraction of that.  Anyone with even rudimentary math skills can tell you that the Gold Card provides more value, and  for you to state otherwise is both dishonest and insulting to our intelligence.  

Your reference to the program as “improved” is a half-truth; for some it is mildly better, but for others it is much worse.  Your words are very precisely crafted:  “…the new improved rewards program for our valued Starbucks Card members.”  Notice that you refer only to Starbucks Card members, not to Gold Card members when you say that the program is improved.  That’s because you know that it is certainly not an improvement for Gold Card members.  I suspect your lawyers approved this language to allow you avoid misstating the effect on Gold Card members.   While your description stated in this manner may be legally and technically accurate, it is certainly disingenuous.

You attempt to justify the new program by saying you are giving your customers what they asked for, citing four examples of specific requests you fulfilled.  However, fulfilling these requests in isolation without regard to the totality of the final end product resulted in a significantly worse loyalty program for your most loyal and profitable customers.  Specifically:

1. “Lose the $25 annual fee.”  The customers who want to eliminate the fee are not spending enough at Starbucks on an annual basis to justify an up-front entry fee to obtain a 10% discount.  Ask any Gold Card member – your  most loyal and profitable customer – if he wants to trade the current Gold Card discount for the new program.  Have you heard from even a single Gold Card member – again, your most loyal and profitable customer – who likes the new program?

2. "Two different programs are confusing."  This is true, but you have actually made the situation worse by excluding Duetto Card members – again, frequent and loyal customers – from the whole loyalty program.  While Duetto Card members had to carry two cards, at least the programs were compatible.  Now you have traded off two different programs for another two programs, cutting Duetto Card members (i.e., loyal customers) out of your customer  loyalty program.

3. "The more I visit, the more I should be recognized and rewarded."  The way you implemented this sentiment is the biggest perversion of logic I’ve seen in a long time.  Do you honestly think what your customer was telling you is “I want to be rewarded with 1/15th of a beverage for each visit, regardless if I spend $1 or $20.”?  This is so ridiculous that it doesn’t even justify further discussion.  Absolutely ridiculous.

4. "I am already a member, That [sic] should count for something."  My guess is that customers think it should count for more than you think.  True, current registered members will not have to earn with five visits the free WiFi they enjoy today.  Also, Gold Card members will only have to make 15 visits to earn their first beverage instead of 45 visits.  That’s the equivalent of two free drinks, not much of a consolation for eliminating the 10% discount.  With all due respect, while you may think the new gold card is “quite cool,” it is a piece of plastic with nothing behind it.  Please do not insult us again by claiming it is of any value to us.    

While we loyal Starbucks customers disagree on many, many issues, I think we can all agree that Starbucks completely misread its most loyal customers when it hatched this rewards program.  As I said in the original thread introducing the “improved” rewards program, this has to be the biggest customer loyalty mistake since New Coke.  

While this new rewards program is an incredible embarrassment for Starbucks, I will again suggest an idea for Starbucks to save face from this monumental blunder:   Introduce the Starbucks Platinum level as the next tier on the proposed rewards system.  At the Platinum level, which could be purchased for, say, $25, the customer receives a 10% discount on almost everything in the store.  Hmm, sound familiar?  The additional level would provide the best of both worlds: an earned tier to build and reward frequent customers’ loyalty at the Gold level, and a paid tier to reward Starbucks’ most loyal and profitable customers at the Platinum level.  Now that would be a rewards system we could all stand behind.

flukes
11/7/2009 5:53 PM

Starbux:  Well said!!!!  I couldn't agree more.   The wording of "new, improved rewards program for our valued Starbucks Card members" also made me realize that we (loyal Gold Card members) are not valued. ....because it IS new and improved for non-gold members (who apparently ARE valued).

betterbefore8
11/7/2009 6:19 PM

I share the sentiments of everyone who has posted before me.   How much can we say????  Surely you get the picture by now?  Something else that I want to point out is:  all those "please give us a punch card system " requests that you refer to were NOT FROM US, and, many times a moderator came back with a reply something to the effect: "we prefer to give you rewards upfront, immediately". (as in 10%)  That was YOUR justifcation.  weird, isn't it???   and seriously, while I appreciate that you (Terry) at least "appeared" and made some comment, as "Starbux" alludes to above, please don't patronize us.  please.   we are disgusted, disheartened.

Hayley
11/7/2009 7:20 PM

I have to say I am in agreement with everyone else here.  You need to give the current gold card members a little extra offering than what is being proposed!!

dougdo
11/7/2009 8:34 PM

I like the new program.  Except why on earth is it not applicable in Canada? Why are we not treated equally?  We already pay more for all the same Starbucks products.

BudGreen
11/7/2009 8:42 PM

Terry,

You are not serious are you?  I've read just about all the comments and feedback on 'My Starbucks Rewards'.  There have been possibly four or five that have had ANYTHING positive to say about this marketing disaster you are playing on us.

It is painfully obvious that you do not care about what we are saying to you as a corporation. You keep plodding on like our voices are meaningless dribble to you. That is disingenuous at the least and downright rude in my opinion.

You might as well come right out and say: 'We made a mistake offering you, our most loyal of customers, a discount for spending you hard earned money with us.  Now we are instituting a punch card system and you can like it or leave. We'll get by just fine without you. '

My relationship with Starbucks ends on January 05, 2010. I encourage everyone to keep letting Corporate know how  dissatisfied we are. Here on the blog, at MSI, on Facebook, Twitter, and by post. Keep letting them know the clock is ticking and we are serious about not patronizing the store as much or at all if they do not return the program to it's previous state.

PEACE

pepmochafrap
11/7/2009 9:31 PM

Bring the Gold Card to Canada and keep the 10% discount.

Melody13
11/7/2009 11:54 PM

Hi Terry,

I don't know that I can add much more than what has been said above.

I have no doubt that the ten-percent discount is more valuable to me than a free beverage every 15 transactions, but you get to make the rewards, and so long as I continue getting great coffee, I am there.  The only issue which REALLY pushes my buttons and tests all of loyalty is "brew on demand".

I think part of the dizzying experience with Starbucks is that since April 2008, Starbucks has been setting up a strategy where certain groups of customers are "preferred" over others.  I fully believe that people perceive these experiences even if one is unable to articulate them.  People perceive all kinds of things that they have no words for.

In April 2008, Starbucks introduced Pike Place Roast, and there is no doubt that the group of customer who LIKE Pike Place Roast became the "preferred group".  This group was never told that they must wait for coffee, and never told that they have to speak with a manager before getting a cup of coffee, and the PPR enthusiasts don't walk out of a Starbucks empty-handed or with a substitution in their hands.

Two-groups of customers. It's a split. There is nothing more unpleasant than the register experience of a barista who rolls their eyes and begrudgingly rolls his or her eyes and says 'yes' to brewing coffee when the body language says 'no'.  This really does happen.

Starbucks seems to have lost the psychic connection with ALL customers that it is a store for all.  Even if you think this won't happen it will. People notice in their gut where there are no words for them.  Gone missing is no smell of coffee in the stores. Gone missing is no thud thud sound of a portafilter being emptied. Gone missing is no whole bean menu. Gone missing is the experience at the register where everyone delights in coffee.

My worry with the new "My Starbucks Rewards" is that it is a further fragmentation of the customer experience, under the guise of being more inclusive.  Now, there is a subtle message that the "preferred customers" drink beverages and buy a small side pastry. And I am prepared for the painful experience at the register as baristas roll their eyes when asked to split an order into multiple transactions. This is not good for the experience. Gone missing is the experience of happy baristas at the register: I have no doubt, a significant number will be annoyed that they now have to slow down the line for 5 people who want a cookie and a latte as two transactions.

I think these are legitimate concerns about how the new rewards will affect the experience. I don't feel like customers like myself are any kind of "preferred" or "wanted" customers really so much anymore. I got hit twice: First when I realized that it's best not to go to Starbucks in the afternoon, and second when I realized that those, like myself, making larger purchases are just going to slow down the line, have baristas roll their eyes at splitting up transactions. Three items will only push buttons. My morning routine of a coffee, juice, and yogurt will now cause eye-rolling. It's too much to ask a barista to ring that up as 3 separate things, so I realize that I should probably just get the coffee and be on my way...

The truth is that all that I am trying to say has been better said by others before me.  If you look to the "badlands of Central Texas" you'll find this theme repeated in a far more eloquent fashion:

brandautopsy.typepad.com/.../no-more-starbucks-gold.html

I guess we'll get through this dizzying experience; It's like a long Amtrak ride from California to Seattle, and you get off the train and your legs feel weak and you're sure the world is still moving past you at 50 mph in a wobbly kind of way. But after a short while, the land legs come back.

I'm not lamenting the loss of the 10 percent discount really. I am just concerned as to how the new program will play out when it comes to the in-store experience. Starbucks gave me a 10% discount for what will amount of 15 months, and it was free to me. I am not entitled to the discount. I'm just worry that the program that replaces it will cause a deterioration of the Starbucks experience, much in the same manner "brew on demand" has done so.

I hope you can understand.

Melody Overton

Melody13
11/8/2009 12:01 AM

It's midnight and boy I've made a LOT of typos in the above post. Sorry.

purple1
11/8/2009 5:48 AM

Melody nicely said. I agree with it. I can just imagine how long the lines will be with multiple transactions. And I so agree that the experience of interacting with the baristas will be lost or totally eliminated because they will be so stressed out. Even now when the lines are long, there is less chance to chat and you can see the stress in their face. SB are you listening to all of this? And again I will put in my wish for free iced green tea refills for those of us that stay in the store. Thanks.

Melody13
11/8/2009 8:18 AM

Hi purple1! Thanks! Though I wrote that out quickly late at night and now in hindsight I realized I used way too many words to say what you just said! The interaction between customer and barista is going to become even further strained, just as it is with 'brew on demand'.

Steve 3
11/8/2009 8:38 AM

Well said Melody even though it was a bit wordy.  Maybe you should have wrote it in the morning after a good nights sleep and you wern't so tired but nevertheless it was a jolly good post!

COFFEEISLIFE
11/8/2009 9:39 AM

The new rewards will do fine, many people that never had a Starbucks card will get one. The single focused rewards progam will refine with time.  

Steve 3
11/8/2009 10:21 AM

Yep I guess you're right Coffeeis and, since there is a sucker born every minute, people will see the word FREE and think that their beverage is acutally FREE but when you think about it after you get done paying for 15 purchases you have unknowingly paid for the FREE drink.  But let them think that.   It's a scam and I never thought Starbucks would stoop so low especially after promising us that they would never come out with a punch card and then come out with a glorified punch card.   Just like politicians talking out of both sides of their mouths.

DadCooks2
11/8/2009 10:38 AM

Consider this a two-thumbs-up vote for the very well thoughtout posts by Starbux and Melody13/Melody. SBUX you really need to carefully read (and hopefully understand) what these two folks wrote in their recent long posts. SBUX, if it is your intention to fundementally change the philosophy of your company then you are well on the way to less than mediocrity.

sgirl
11/8/2009 12:01 PM

Well said Melody! My greatest fear as a barista is the customer who, at the height of the morning rush, with a line of customers behind him or her waiting for a simple cup of coffee, wants every item rung separately. Certainly there must be a way around this!

Steve 3
11/8/2009 1:34 PM

Sure there is a way around this S Girl and that is to scrap this stupid rewards card which is just a glorified punch card but worse with stupid stars and you have to get 15 to get a "free" beverage to you  unknowingly pay for and reinstate the gold card with it's discount on every purchase.  After all it's been out only a year.  But I have a feeling this decision has been made a long time ago and it is written in stone and we are just all wasitng our time talking to each other while no one at Starbucks really cares and all we get from the moderators is meaningless stuff like "Thanks everyone for your feedback. The Starbucks Card team is looking at this idea".  What does that mean?  Not a thing.

VaSbux
11/8/2009 1:56 PM

I've posted some thoughts similar to Melody's (but nowhere as eloquently :)  ) in other MSI threads, but my bottom line is/was:  Does no one at SBUX marketing have a clue about focus groups or damage control?  This is all looking like 'this is the way it is, take or leave it'.  Not the way to keep high-end customers.   SBUX stock is up.  Let's check back in a year.  I think SBUX marketing needs to take a few tips from Apple, where you don't upset the repeat customers with lies and 'better' programs that aren't really better.  As Melody says, the program was only there for a year, but, I say, people get used to something, and it's hard to remove something that people are used to.

VaSbux
11/8/2009 2:02 PM

@sgirl  This is one of the things I absolutely can't believe got by past testing and review.  It was noted by everyone the second the program was announced.  Any user would have said, well, we'll just do this, meaning having you ring up each item up separately.  But, SBUX rolled out the program not saying that one visit was one star, but one transaction was one star.  Makes no sense to me at all.

Steve 3
11/8/2009 3:08 PM

Hey S Girl do what I plan to do.  Buy 1 cookie, or some other real inexpensive item, each day for 15 days and then for your "free" beverage get the most expensive beverage you can.  Then repeat the cycle every 15 days.

uhuhkbhkjb
11/8/2009 5:24 PM

Steve pointed out another flaw in the new system. Someone could buy 15 solo espressos for barely a dollar each, and then use their "free" drink for a Venti caramel frappuccino with extra syrup and 4 shots of espresso. That will be a loss to Starbucks, but I guess that they will be saving a lot by not giving people the 10% off. I don't know anymore.

Steve 3
11/8/2009 6:08 PM

Starbucks opened the door so I will go on it!!

Steve 3
11/8/2009 6:25 PM

What I'd like to know Pechipy is must I pay with my gold or reward card which I'd rather not do or can I pay with my credit card like I've always done.

uhuhkbhkjb
11/8/2009 6:27 PM

I believe that you do have to pay with the rewards card. They probably did that so they could save on credit card transaction fees.

Lilisma
11/8/2009 7:06 PM

Thank goodness I resigned last March. This company is well on the path to self destruction.

StealthNet
11/8/2009 11:43 PM

The stars per visit idea is INSULTING.  At best, one star per beverage with a free beverage after 15 visits (1/15) = 6.6% discount.  However, the actual discount is much lower when you factor in multiple beverages for the same purchase (still just one star), merchandise, etc... Probably closer to 2% when you average everything out.

Buying a $2 coffee?  You get 1 star.  Buying 10 lattes for the office for $40?  You get 1 star or about 0.66% for that transaction (yes, less than 1%).  I'm sure baristas are going to LOVE being asked to ring stuff up separately, and I'm sure customers are going to LOVE asking for transactions to be rung up separately.  

Oh yes, and let's not forget the archaic method to redeem the free beverages.  The postcard!  Really?  Are you SURE that method wasn't chosen because of the reduced redemption rate?  Probably only 50% of those will ever get redeemed (many people lose and forget).  That 2% or so actual discount is now down to about 1% when you factor in redemption rates.  That 9% difference more than makes up for the loss in $25 per gold card membership revenue.  No large company would decide to increase processing and postage costs (such as mailing out these postcards) if it didn't believe they would save money in the long run.  It's their responsibility to their shareholders.

Another thing to consider too, since the 10% discount would no longer be in effect, and instead SBUX would be switching to this stars program, that means their store comps (comparative sales for the prior year) would increase theoretically -- as long as the loyal gold card customers aren't annoyed by the new program too much and keep visiting.  Shareholders love to see comps increase.  

These types of large changes are not done without lots of approvals from Operations, Marketing, and Accounting.  Rest assured many eyes and calculators have determined this is in SBUX's best interest.  I'm sure some elaborate Excel sheets were put together to show the net effect on revenue, income, EPS, etc.  

I visit MANY corporate blogs and twitter accounts.  MSI appeared to start off as a rather novel blog, but now all posts by SBUX corporate are so combed over by their staff that it doesn't feel organic... Merely a talking piece for Marketing and Operations -- which is to be expected to some degree, but disappointing overall when you have this patronizing speak of an "Improved" program... When yes, some elements have improved, but by and large is INFERIOR and you know it.  I don't know about you, but visiting a "third place" from a company that thinks I don't know basic math is not something I want to do.  

For a company that is facing more competition/alternatives than ever before (single serve/pod and fast food), I'm quite surprised that the decision was made to tinker with the gold card (and hence, its most loyal customers) like this.

My prediction: These messages will get filtered through to the higher ups and SBUX launches Platinum level rewards for $25 with 10% discount and includes free syrups, etc.  Otherwise, Howard's 2007 memo about SBUX losing its soul should be re-read by the decision makers.... again.  

SunQuestMinis
11/9/2009 3:59 AM

I am another super loyal SBUX gold card customer that goes into starbucks every day. In fact, I often go in with several others and pay for their drinks as well. And this is even after being laid off from my job well over 6 months ago. The changes to the gold card program SUCKS and will not save me anything to speak of! Further, nothing else is covered under the new program, and I often buy other things to eat with my coffee, or things that are not edible that are in the store like music, cups, and other trinkets. What is the incentive to buy anything at Starbucks now when I can go into the store next door to get these same items for much less and the food is normally fresher? (Humm, I forgot, there is a Tulley's in that store...)

Oh, and one other thing... Having to load my card with money goes against every grain of my being as some of us are actually thinkers and are much smarter than your average customer. I absolutely HATE pre-paying as Starbucks makes a ton of money off the interest they are getting from having money on all of the millions of cards before people spend it on product. Think about it folks. The discount that they are giving us on the drinks is offest at least some, if not all, by the money they earn from having our money in their bank accounts before we make a purchase!

So what am I thinking of doing? My husband works for a little coffee "micro-roastery" that makes a very good, and in my opinion better, latte than SBUX does. It is only about 1.5 miles down the road from either of the 2 SBUX that I most often visit. (pretty much located between the 2 SBUX stores). I can get a great discount at his place of employment due to his employee discount. And even without that discount, it is still cheaper to get coffee there. And there is the original coffee shop that is across the street from my closest SBUX that was in existance before SBUX came to town.

Yep, will miss my SBUX community of friends, but I know that it wouldn't be long before I would be part of a new community of freinds. The real question is how many friends at SBUX will now be visiting the compition next door, across the street, or down the road?

betterbefore8
11/9/2009 5:53 AM

The one and only comment on here in favor of the new plan is from someone in Canada, which to me, doesn't really count...since they never HAD the Gold card before.  What can they be judging by?  so, that doesn't seem really valid, meaning no disrespect to the person.

I have said before:  I would trade in a minute:  all rewards, all cards, 10%, etc, if we could only go back to pre- PPR, pre 4-08.  and even if the-B.O.D. (non) policy were enforced and there was signage in every store about it  and it was offered up even moderately cheerfully, I'd be happy.  But none of those things are true.   and so, things just get 'worser and worser'.....  

Starbux
11/9/2009 6:18 AM

@StealthNet:  Thank you for you post.  You have summed up all the problems with the new rewards program very nicely.  We all hope Starbucks will come to realize that its customers are actually able to do math.  Hopefully Starbucks will admit this program is a mistake and implement the Platinum level we suggest.

krissbeth
11/9/2009 11:30 AM

This blog post is Starbucks's equivalent of sticking their fingers in their ears and yelling: "LALALALALALALAAAA!" at the loyal Gold Card customers who have spoken up and voiced their dissatisfaction with the new so-called Rewards Program.

Get with the program, Starbucks!  There's plenty of competition out there and I bet SeaBest, Peets, and a whole slew of local cafes would love our money.

Steve 3
11/9/2009 1:25 PM

Starting in January good bye Starbucks - hello Tully's!

Starbux
11/9/2009 1:52 PM

@krissbeth:  By SeaBest, I assume you are referring to Seattle's Best Coffee?  Just so you know, that's actually owned by Starbucks, so I don't think Starbucks would mind so much if you spent your money there, instead.  

Starbux
11/9/2009 1:55 PM

Oh, and as Starbucks shareholder, I wouldn't mind if you spent your money at Seattle's Best, either.

longleafwinter
11/9/2009 1:58 PM

The simple math.

Out of every fifteen visits to Starbucks, I buy approximately two bags of whole bean coffee and thirteen tall brewed coffees.  And I probably accumulate those fifteen visits every three weeks or so.  52 divided by 3 is approximately 17, so I'd "bonus" about 17 times per year under the proposed new rewards program.

With the current 10% discount, I save ($0.16 x 13 + $1.00 x 2) x 17 =  $69.36.  Subtract $25 for the yearly gold card membership and I, net, save $44.36.

Under the new rewards program, I'd save $1.64 x 17 = $27.88.

Since when is saving $27.88 better than saving $44.36?

a.) Am I missing something here?

b.) Is Starbucks secretly implying/hoping I'm an idiot?

c.) Does Starbucks really not care?

d.) Both b and c?

Which is it Starbucks?

kcm43085
11/9/2009 2:39 PM

Hahaha!!  That is the only thing I can do after reading this entry.  This is the most ridiculous load of b.s. that I have ever read.  You obviously don't value your customers; otherwise, you would notice all of the negative attention that your "new and improved" rewards program is garnering.  I mean, I'm sort of impressed that you could actually type that entry, read it, say to yourself, "wow, this is really good and the loyal customers will understand" and then actually post it...wow, just wow...

NomadA32
11/9/2009 2:53 PM

Terry,

      We appreciate you rolling out a new "Reward" program but i do not really see the value in getting a free beverage once in awhile. That free beverage for me would be roughly a 6.00 drink for me. In comparison there are somedays that with my Gold card i actually save 3-4 dollars. As a 2 gold card family we spend roughly $100/each per week and at times more. This is actually going to cost me more per week now by getting rid of the Gold Card reward. Heck i'd pay $50 for the gold card as a fee considering i have saved almost $2200 combined with the card. I can honestly and truly say that come January 5th 2010 I will no longer be a Starbucks customer. Should Starbucks bring back the Gold Card with the 10% discount back we will once again become customers. I am sure there are others who would be more than happy to pay more than $25 for the Gold Card. I truly believe that you are making a huge mistake and ask that you reconsider the 'My Rewards" that starbucks is offering.

As they say "If it aint broke don't mess with it"

swood
11/9/2009 3:57 PM

Hi Terry:

I would have to say, as a SBUX Gold Cardholder and SBUX Shareholder, I am less than impress with this "New and Improved" reward system.   I think Starbucks is missing the boat on this one.  The new reward system would be great for individuals who I work with who, maybe twice a week, stop by Starbucks for a "Treat" drink.  But, for those like me, this new program is a waste.  We spend close to $2000/year (Yikes, I should really look into that if I'm not getting the 10% discount any more) on Starbucks drinks, and to be honest, I have to go out of my way to wait in a over crowded/slow drivethru every morning for my "fix".   From the customers point of view, the Gold card made us feel "Special", which is a good think for both of us.  Since I feel a little "Special", I tend to spend a bit more than I normally would.  Plus, since I'm a Gold customer, you are able to use my data to determine purchasing habits, likes, dislikes, customer traffic and all the other things you can do with the data.  Oh, and I did I mention that you sell $2k worth of product a year to me???  To quote longleafwinter "Is Starbucks secretly implying/hoping I'm an idiot? or Does Starbucks really not care"

krissbeth
11/9/2009 4:25 PM

@Starbux Well, crap!  You're right.  I worked for them before the 2003 sale, so I always think "AFC" when I think of SeaBest.  Well.  Then.  Peet's, Diesel, and Tealuxe it is!  :p

Starbux
11/10/2009 6:22 AM

@krissbeth:  Tealuxe, as in Harvard Square?  Does this mean you're in Cambridge or the Boston area?

RaeWhitlock
11/10/2009 10:03 AM

Howard: Terry, every chance you get, refer to it as the "improved" program. Maybe some of the Gold Card customers will actually start believing it if you say it enough times.

Terry: YESSIR!

(Terry, this is not a personal jab. We all know how corporate-speak works. But truly, continuing to refer to it as "the improved program" is insulting to the intelligence of your Gold Card customers. Sure, you're just doing your job, but what do you do when doing your job gets in the way of common sense and decency?)

krissbeth
11/10/2009 12:55 PM

@Starbux Yes!  I live in the Cambridge area and work in the Boston area.  In either domain, I have a Tealuxe within easy reach.  :)

sairs17
11/10/2009 3:51 PM

Please do not insult the goldcard customers thinking that we aren't smart enough to realize that you have truly read and taken our thoughts and wants into consideration when your company is doing the EXTACT opposite to save money yourselfs. I have to say I will definitely stop being  a customer (2x a day) if the 10% discount is taken away, I don't understand why you would take a program away that is working so well and the people who have the gold card don't care about having to pay the $25 per year to be a member of!!! You really should rethink the new plan as there will be a decline in customers I am sure. Please don't try and act like you are doing everyone a favor by giving free drinks away after 15 visits, which is another rip off since it will be smarter for people to ring up each item seperately as well as the reward card in the mail is a joke! why can't it be worked into the card system?! We are in a technology world yet that can't be done?

gridloch
11/10/2009 4:46 PM

It is pretty clear from all the posts and responses that Starbucks doesn't really get it and doesn't really want my or other Gold Card customer business. I am contacting other national / regional coffee house as perhaps they will take advantage of this blunder from Starbucks and welcome Starbucks Gold Card members with a program of their own.  I truely hope one of them capitalizes on this...... I can spend my $$$$$$ elsewhere.

Starbux
11/10/2009 5:13 PM

@krissbeth:  I think I love you -- meet me at Tealuxe!  (only kidding around...)

Steve 3
11/11/2009 6:08 AM

The new rewards program really STINKS and SUCKS with a capital S. Most every comment I’ve read on the subject is negative. What was Starbucks thinking? Guess they were thinking more about enriching their bottom line than rewarding their loyal customers and might come back to haunt them. And those “stars” are pretty phony. A free drink after 15 drinks? If you buy 15 drinks that cost $3.00 each you spend $45.00. Even a cave man could figure out that after spending 45 bucks you have paid for your “free” drink. Is this the “enhanced benefits” they promised us? SEEMS LIKE THEY ARE LIKE POLITICIANS TALKING OUT OF BOTH SIDES OF THEIR MOUTHS!

DadCooks2
11/11/2009 7:30 AM

I have now concluded that restoring the Gold Card is a lost cause.

Take a look at the comments that MSI combined from the many post sby people that think that a punch card is better than an across-the-board 10% discount or that it made more sense to use a registered card, in some cases, for free refills and add-ons.

These are the same folks that think the new program is really an improvement.

Starbucks has discovered that most of its customers are ignorant so Starbucks can tell them anything and the customer will believe it (e.g. Pike Place is great coffee, a free drink after 15 is better than 10% off, too many more to mention).

Starbucks has found that they can make money from customers with a McDonalds and Taco Bell mentality and taste, so why try to be the purveyor of fine coffee.

pineapplewater
11/11/2009 9:14 AM

Loyalty is sticking with it in the good and bad. I would hate to be the spouse of the people claiming they are loyal to starbucks. They may be making a bad decision that is not good for you financially, but let them know and keep going. If you quit going Starbucks will never change and your new coffee shop with eventually do something that ticks you off.

Steve 3
11/11/2009 9:40 AM

You are absolutely right DadCooks and Starbucks knows all too well that THERE IS A SUCKER BORN EVERY MINUTE AND THAT IF YOU TELL THAT SUCKER THAT THEIR BEVERAGE IS FREE THEY  WILL BELIEVE YOU.

jeanbean2
11/11/2009 11:32 AM

I am so upset with the loss of the 10% discount (a privilege for which I DID pay $25) that I have dramatically cut down my Starbucks purchases. My colleague or I went every day to Starbucks to get our coffees. Now we make our own coffee or go to QT, where it is much cheaper and the coffee is really good. I miss my association with my local barristas but I refuse to just accept this "improvement" and play nice. I understand people's anger and I join them in protest.  

Steve 3
11/11/2009 12:42 PM

Something tells me that you certanily are not alone Jean and as soon as people wake up and realize that they are being duped under the false premises that this new rewards system is an improvement and realize their 16th drink is really not free as Starbucks says they will all abondon Starbucks for their compition which is fully aware of what is going on and just waiting to welcome them with open arms and will treat them with reapect and dignaty.

krissbeth
11/11/2009 1:16 PM

@Starbux LOL!  It's easy to quit 'bux when you have 'luxe.  :P

Steve 3
11/11/2009 3:05 PM

Wkat is that supposed to mean Kriss?

dmacone
11/12/2009 1:54 PM

I am extremely upset about this new Rewards Program! You say it is what "we" wanted but it seems to me it's not at all what we wanted but you wanted. I spend at least $150.00 a month at Starbucks but now I will no longer be spending anymore of my money at your stores after my Gold card ends on 1/05/10.

I was very disappointed by this new combining of programs. I would rather pay a little more on the annual fee and keep my 10% discount than the options you have come up with.

The fact that you put this on us is rediculous, your company realized that this was too much of a good thing and nixed it, at least have the courage to admit it!

Again I would much rather pay a little more for the perks of the Gold Card, than have it removed completely! I am totally with the other protesters on this one. I will take my business else where and thank my local Baristas for their excellent work and let them know they will be missed deeply!

I make very little money in my line of work and to spend the kind of money I do is almost ludacris, but I have always considered Starbucks my special "treat", now I will have to find other ways to spend my money...unless the CEOS of Starbucks are willing to reconsider this unwelcomed change!!!  I hope to I continue my business at Starbucks.

geoGerry
11/13/2009 5:43 AM

I have a hard time believing any of the rewards team members honestly think 1 point per TRANSACTION is actually better than 10% off every transaction.  I do a lot of home-brewing and purchase all of my supplies (beans, mocha powder, caramel sauce, etc.) from Starbucks, and the 10% off was a huge benefit for me.  I also order more than one item per visit (breakfast sandwich, a second drink for my wife, etc.).  All of these multi-item transactions ARE going to be split up once you take away my Gold Card.

geoGerry
11/13/2009 5:52 AM

Further, you claim this change is the result of popular feedback from the MSI site.  I think you totally truly threw your most-loyal customers under the bus (those who realized they spend enough in your stores to warrant the $25 annual fee for the 10% discount = $250 + per year) to respond to the whiners who wanted a punch card style system or the same benefits as the Gold Card without having to pay for it.  And then, after all of the negative feedback we've left you at MSI (and your Facebook page), you have the audacity to post this drivel about this being an "improvement" that will take time to "get used to."   Well listen to me now: I DON'T WANT TO GET USED TO IT!  THIS IS NO IMPROVEMENT

Anonymous
11/13/2009 6:25 AM

Hey folks I think we are all wasting our time talking to a brink wall and the idiots and inept management at Starbucks has made up their minds and will in time realize what a huge blunder they made when suckers realize that the "free" drink they get by earning 15 phony stars is not really "free" at all and that they unknowingly have paid for it.  However by that time it may be too late for Stabucks since most of their loyal customers would have switched to their competitors who do not treat customers like children giving them phony stars and "free" drinks that they pay for.

COFFEEISLIFE
11/13/2009 10:53 AM

Honesty is the best policy

COFFEEISLIFE
11/13/2009 11:10 AM

Food and water is very important to survival. Great Coffee is very nice to have. For alot of people, $8.00 dollars a day is an average limit to spend on one's self.  To get as much as possible for that $8.00 average is important - personally to the consumer.  More so than gas,cigarette,and other  prices. People don't want to cut back and have less Starbucks everyday. People want to consume the amount of Starbucks and maybe a little more every day to be satisfied.  All or nothing attitude i read. People get upset when you take some of their favorite things in life away.

krissbeth
11/13/2009 11:42 AM

@Steve 3 It refers to the local-to-Boston franchise "Tealuxe" that Starbux and I were chatting about.  It's one of the local options I'll be taking advantage of now that Starbucks has veered into mocking customer loyalty territory.  http://www.tealuxe.com/

Anonymous
11/13/2009 11:55 AM

WOW...didn't realize there were SO MANY folks who thought the same things I did when I reacted to the "improved program" update!  My friends and I have been stewing over that info ever since we got it - and, contrary to what I normally do, I am posting something in protest.  If the new program update is what Starbucks wants, then please note it that way...because this certainly does not reflect an improved program for any GOLD status member.  The initial shock comes from the removal of the 10% discount (and there is no comparable replacement for it in the new program).  Virtually everyone I've talked to don't find any advantages of the new program that they would consistently use...and the new Starbucks frequent user program doesn't even match what Safeway had at one time for their in-store loyalty program (1 free drink for every 7...over DOUBLE what the Starbucks program allows!).  In addition, definitely won't be using Starbucks gift cards and items as gifts for the holidays or any special occasion (like I usually do) because there is certainly no incentive to do so.  If Starbucks does not "upgrade" the upgrade program, then the message is clear to consistently loyal GOLD patrons...that their business is NOT VALUED to the corporation and that Starbucks does not care if they lose that consistent business...and that's really disappointing to think of such an innovative company.

DeaconBlues
11/13/2009 12:27 PM

Reading over the "new and improved" program, it reads more as a "entice return visits from casual customers" program rather than a customer loyalty program.  In other words, more bodies in the door, not necessarily more revenue from the customers you already have.

This is a blatant Marketing ploy.  Please don't insult your customers by telling them this is "more value" for them.  It's simply more value (revenue and product branding opportunities) for Starbucks.

I, for one will take my business elsewhere, as it is quite clear that "customer loyalty" has become a mere buzzword.  So far, Peets has been providing better service, and better quality.  And they're NOT on every street corner and in every mall in America, which to me is actually a plus.

ChickPurple
11/13/2009 12:43 PM

Wow, Starbucks'  response post to everyone's feedback about how this is a bad idea is INSULTING!!!!!

I'm not sure where I should begin with my feedback on this. As a current Gold Membership holder, the downgrade from saving 10% on everything to getting ONE "punch" per VISIT? Is embarrassing at best.  This really should be at least one "punch" per DRINK to be of any value to the consumer.

For example: on any given weekend my boyfriend and I will purchase a drink and a sandwich each, sometimes a pastry, spending approximately $13-$15 per visit. With my Gold 10% discount, this takes off $1.30-$1.50 in discount. More often than not, we'll visit both Saturday and Sunday spending the same amount. Do the math, if we do this every weekend for a year, we're spending $1300-$1500 at Starbucks.  This doesn't include the weekday trips either of us will make separately, nor does it include coffee beans I'll purchase, Bearista bears, mugs and other things and gifts that we will buy. Having that 10% discount is incentive for us to keep coming back to Starbucks and purchasing things we can easily buy elsewhere.

Now, figure in the "punch" system. One punch per visit, if we spend $1, or $100, or buy multiple drinks, or a single drink? Again, do the math:  if I take the cost of the drink that I buy ($4.00), and divide that by 15, that equals $0.26. Twenty-six cents per visit savings.

How is this incentive for convincing me to want to remain a loyal Starbucks customer? I willingly bought a Gold Membership, and would willingly pay another $25 for another year of the same benefits that I'm receiving now.  For the "punch" system to be of any value at all (and this is stretching the meaning of the word "benefit"), we will need to pay for our drinks SEPARATELY, which will increase time spent in line, become an inconvenience to us, those in line, and especially the baristas who will be spending more time ringing up more transactions.

How is the free syrup and soy milk options a "perk" for people who do NOT drink flavored coffee or drink soy milk? If I'm someone who drinks a latte, or if I drink tea, then none of the drink "perks" are of any benefit to me. This is not an incentive to retain customers.

Removing this discount greatly lessens the incentive to want to take our repeat business back to Starbucks once January 5th rolls around and my Gold Membership ends.

I do like how multiple cards registered to one person will all count towards the "punch" total, especially if you get cards as gifts, but I'm afraid this isn't enough to retain the loyalty of your frequent customers.

Steve 3
11/13/2009 1:18 PM

To sum it all up Starbucks doesn't give a tinker's damn about loyal customers but knows that a sucker is born every minute and if you tell these suckers that every 16th drunk is "free" if they collect 15 of Starbucks' phony stars they will believe that the 16th drink is actually free.  Also if Starbucks convinces say 500,000 of these suckers to load $50. each on their cards Starbucks immediately gets an iterest free loan of $25,000,000.00.   COME ON PEOPLE YOU ARE NOT AS DUMB AS STARBUCKS THINKS YOU ARE!

Kylana
11/13/2009 1:39 PM

To paraphrase what my boyfriend said when I showed him this followup post:

"Okay, so that blog post. "Here are some improvements we've made based on your ideas." Only, one, nothing's changed, so, two, nothing's improved. The. @#$%.

So basically, "We've received your feedback, and to answer it we're going to present the changes we're already making as if they're somehow new and improved changes, only they're identical to what we were already doing, and we hope you're too stupid to notice.""

The upshot is,  my feedback (and justified feedback from many, many  others)  is unheard, yet Starbucks claims to "listen" to feedback. I'm guessing that it's only listened to when its convenient to Starbucks.

The sad thing is my bf said he was thinking about buying his own Gold membership, and I told him he couldn't because this unloyal program was replacing it, he was bummed out.

So I'm not sure who said they wanted to /not/ pay for a loyalty program, because obviously people ARE willing to pay for it to get the 10% discount.

The stars per visit "program" means I will either be spending FAR LESS at Starbucks than I currently spend, or I'll be purchasing everything in multiple transactions in order to get ANY VALUE WHATSOEVER from this badly thought out "program".

Hayley
11/13/2009 1:41 PM

@ChickPurple - check out this thread- there was a mention to create an additional tier to this reward system - I think the more feedback they hear about it, they may look at this seriously!

mystarbucksidea.force.com/ideaView

Kylana
11/13/2009 2:17 PM

@Hayley - That's an excellent thread to check out and post feedback in! Thanks for the link!

chevykid
11/13/2009 2:52 PM

i said years ago i would never pay more than $5.00 a coffee, well now without the 10% my coffee is $5.38. so after 1-5-2010 when the 10% stops so will my spending over  $4000.00 a year at sbux.

If everyone stops buying when the 10% stops, you know sbux will listen as they will have a major lost in sales!

Maxtosh
11/13/2009 7:20 PM

This guy is making 6 figures. You think he cares about anything other than his fat paycheck....think again. Great job Starbucks, hope your profits plummet. I for one will be happy to contribute to you failure.

FotoMoto
11/14/2009 9:36 AM

You know, I highly doubt Starbucks will miss my measly $4k per year, but I'm pretty sure that my local coffee shop will appreciate it immensely. (I'm going to suggest that they hang a sign out saying something like "Ex Gold Card Customers welcome here!").

The fact that it's a ding on Starbucks and a plus to my local shop makes my new year's resolution all the better.

DadCooks2
11/14/2009 9:48 AM

This Gold Card thing is just affecting us "Gold Carders". My wife, son, and daughter have registered cards--have had for years and each use 5+ times a week. According to every "official" statement SBUX has put out, only us "Gold Carders" do not start at go/zero (no deals). This is very unfair too to the loyal "Registered Carders". SBUX your wonderful plan has a big problem. Just imagine the joy on day 1 of the new "rewards" when all the loyal "Registered Carders" find they are no better than an SBUX virgin. SBUX you are going to see a lot more people leave than your bean counters have projected.

Steve 3
11/14/2009 10:44 AM

You are right DadCooks it SUCKS and you know another thing that really SUCKS?  I just got done making a comment and all of a sudden I heard that dreaded click so I quickly clicked on the post button but apparently I was too late because the screen went blank and then said to sign in again which I did but, as you can see, no comment.  One thing I wanted to point out that also, in my opinion, sucks is to collect these phony stars for the "free" drink that you wind up paying for in the 15 drinks is Starbucks requires you to load money on your card.   This isn't too bad individually but if Starbucks convinces say 500,000 people to load just the minimum on their cards Starbucks instantly gets an interest free loan in the millions of dollars.

COFFEEISLIFE
11/14/2009 3:52 PM

honesty

Anonymous
11/16/2009 8:06 AM

after some time has now passed two things seem clear to me:

1- They think this new program will be an improvement to their bottom line.  There isn't a snowball's chance in hell that they sat around the table and came up with taking away the 10% discount as an improvement in the eyes of the cardholders...they're rolling the dice (and probably correctly) that we are hooked and will keep going despite being lied to about their intentions.

2- They aren't listening to us.  I've been on the MSI site, this Blog Posting, in the stores, etc., and (when someone takes even a second to respond) all we get is the same corporate spin - "this is in response to customer feedback."

This, unfortunately, IS going to happen.  Nothing we loyal customers do or say is going to stop it.  

Steve 3
11/16/2009 8:35 AM

I truly do believe you are right so the only thing to do is take your business to their competition where they treat customers right, don't play games with them such as having them collect phony stars so they can earn a "free" drink that they have paid for, and have much better coffee and other beverages to boot. That's what I plan to do.  I'm going to say just long enough to get my birthday drink and a few holiday drinks with my 10% discount before it disappears in January and then it's good bye Starbucks.  I can live without them and so can all of you.

kjminton
11/16/2009 5:51 PM

After years of being a loyal every day SBX customer I have changed to a local indie coffee shop. Not only do they have good coffee, many more syrup flavors, and the worlds best cookies (my fav is the PMS cookie---Pretty Much Scrumptious LOL!) but they have a Happy Hour where all the cookies are half price AND you get a punch on your frequent buyer card for every drink. I just got my first FREE COFFEE today, a double small Maple Latte. (Remember the Maple Machiato?) This shop appreciates my business, they even deliver! Sorry SBX you just lost a good customer.

Melody13
11/16/2009 6:27 PM

Hi kjminton! I've missed seeing you around. I have some beans to send you - Maybe your last Starbucks whole bean. :( Please email me your mailing info - I don't have it anymore. sbux206@starbucksmelody.com

As to this thread, it would be wonderful if Starbucks would come back to it. All I know is that sometimes Starbucks acts like their most longest-standing customers and most loyal are the ones that they least want to see return as customers. These days it pays to drink Pike Place Roast and a cookie, and buy nothing else ever. :/

DadCooks2
11/16/2009 6:44 PM

@Melody - you are the eternal optimist. If SBUX returns to this thread I would only expect another party-line about how much better the new "rewards" system is and total disregard for our comments. kjminton's post reminded me of an important point about "real punch cards"--you get a punch/stamp for each drink you purchase and there are usually double-punch days or times. I have been stopping more at a local espresso shop and end up getting a free drink after buying only 5 or 6 because I frequently hit the double punch bonus.

Steve 3
11/16/2009 7:23 PM

Sorry to see Kathy go but I knew it was inevitable ever since that first thread when she commented that Starbucks gave her a gold card knowing full well the only real store she could use it was in another state two hours away and when she told them they told her to give it to someone who could use it.  Well Starbucks you finally lost her.  One customer might not be a big deal but how many KJMinton's and their friends have you jacked around for the last time?  As for me I was never a big customer.   But if I do stick around I fully intend to just buy a cookie a day for 15 days and for my 16th purchase for my "free" drink get the most expensive drink I can get without making myself sick.

Steve 3
11/16/2009 7:30 PM

Or maybe just to be ornery I might get 3 cookies a day for 5 days having the barista ring up every transaction separete and if people in line complain I'll just say "Howard made the rule so complain to him"

purple1
11/17/2009 5:54 AM

I am so amazed at how there is no concrete response from SB about all the issues that keep on coming up. And I agree that their response has been a canned response and they are truly not listening. Where is this going?

Melody13
11/17/2009 6:55 AM

@purple1 - They're still in meetings.

StealthNet
11/17/2009 8:24 AM

Lots of great posts here by Starbux and many others.  I still think this revised Rewards program is a DRASTIC downgrade.  Everything from the reduced percentage, to the stars per visit and NOT PER ITEM (which brings the percentage even lower), to the postcard redemption method, to the pre-loading requirement (allows SBUX to earn interest on our money, save on CC transaction fees, and benefit from lost/unused cards -- adds up to HUGE $$).  The pre-loading is the least insulting of the changes and I can understand the business sense behind it, but still very displeased with the other changes.

The most insulting is SVP Terry selling this to us as an improvement.  Yes, I was bored and Googled his name after not recognizing him post here before; I believe he is the highest executive to post on this blog, and sadly, it was to spin us the bad news as something we should all love!

Look, if there's no other option with the bean counters in charge, and you think this card will help your bottom line, then just be honest (of course add some obligatory positive spin) -- just don't say it's an improved program over the gold card.  A rewards program is still better off than we were before without one, but with all the hype of the Gold card, about how it was launched due to MSI, how much you listen to your loyal customers, etc, etc.... I don't want to overstate it or be melodramatic since we are still talking about coffee (!), but it's still insulting when you are coddled with all the hype/benefits of the gold card (especially for the beta testers who felt like VIPs when they received theirs for free since they were chosen specifically for their spending habits at Starbucks), then told that you are better off with a reduced benefit from a corporation that built its reputation (and most recently MSI), off listening to its customers.

However, one thing I will commend Starbucks on is not censoring/moderating comments on its blog (with the exception of harassment/swearing posts).  We do appreciate the open forum here to gripe about the changes, and hopefully Starbucks will listen.  As for no responses from Starbucks in this post, that is very disappointing.  However, sbx_sto has been responding somewhat in another post, "Do not take away the 10% discount for the Gold Card":

mystarbucksidea.force.com/ideaView

Several replies from that partner/employee which seem a little more genuine, I encourage all of you to check it out.  Also, many of the corporate partners came from the stores, and there's a lot of bright people there who still care about the customer experience, so I'm sure there was some corporate fighting against the bean counters over this change.  I still believe my prediction of a Platinum/Gold Plus level getting launched.  We'll see.

purple1
11/17/2009 9:04 AM

Melody- saying they are still in meetings means what? They cannot respond? Have no new answers? Am not really sure what your comment means.


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