Starbucks Revamps Loyalty Program to Boost Customer Visits

• The three-tier system will reward top customers who visit up to 200 times yearly differently than occasional visitors, with reserve tier members (2,500+ stars annually) earning 1.7 points per dollar versus 1.2 for gold tier (500+ stars)
• Starbucks eliminated its two-tiered system in 2019 to engage new members, but now believes the flat structure failed to appropriately reward the company's most loyal customers
• The company reported its first quarterly traffic growth from both Rewards members and non-members in nearly four years, signaling early momentum in its broader turnaround efforts

Starbucks Revamps Loyalty Program Summary

Key Development:

Starbucks is reintroducing a tiered loyalty program structure to its Starbucks Rewards system, effective March 10, as part of its broader turnaround strategy. The announcement was made at the company's investor day following positive quarterly earnings results.

Program Structure:

The new system features three tiers based on "stars" (points) earned over 12 months:

• Green Tier (under 500 stars): Birthday rewards, early menu access, personalized offers; stars expire after six months
• Gold Tier (500+ stars): No expiration on points, 1.2 stars earned per dollar spent
• Reserve Tier (2,500+ stars): Exclusive merchandise and events access, 1.7 stars per dollar spent

Additional perks include a new $2 discount option for 60 stars and "Free Mod Mondays" offering complimentary drink modifications monthly.

Strategic Context:

Starbucks eliminated its two-tier system in 2019 to encourage new member engagement but found it failed to adequately reward top customers. Chief Brand Officer Tressie Lieberman noted the company's best customers visit 200 times annually but were treated identically to once-yearly visitors.

Market Significance:

The loyalty program is critical to Starbucks' business, accounting for 60% of fiscal 2025 revenue. The company reported its first traffic growth from both Rewards members and non-members in nearly four years in its latest quarterly results, signaling early turnaround momentum under CEO Brian Niccol.

The revamp aims to balance rewarding frequent customers while maintaining profit margins and attracting occasional visitors, addressing both segments Niccol identifies as essential for sustained growth.