Starbucks’ Loyalty Program Continues to Click With Consumers

Navigator Edition: April 2014
By: Allison Brenner

Starbucks hosted its second quarter earnings call on April 24, 2014 and the executive team once again reiterated the company’s commitment to the mobile / digital space and specifically its Starbucks Card product. While Starbucks is “just beginning to leverage [its] vast My Starbucks Rewards member base,” the stored-value loyalty program, which is integrated into the retailer’s mobile app, continues to grow. For example, load volume on all forms of the Starbucks Card approached nearly $4 billion last year. In just the first two quarters of 2014, load volume (including new activations and reloads) already exceeds $2.3 billion.

Figure 1: By the Numbers: My Starbucks Rewards Program


Source: Starbucks’ FY 2Q 2014 quarterly earnings call, company press releases, investor relations materials.

Starbucks also made investments in its iPhone app this quarter including digital tipping, “Shake to Pay,” and digital receipts which have helped drive more than 5 million mobile transactions per week in its North American stores.

During the earnings call, Starbucks noted that third parties such as retailers and technology companies have approached the coffee giant on licensing its technology and mobile platform, or even using a white-label product based on its successful loyalty program. Starbucks plans to take a disciplined approach to consider how to leverage its mobile / loyalty platform and plans to disclose more in the “months and quarters ahead.”

For more information, please contact Allison Brenner, specializing in Credit Card Issuing,

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