Starbucks Corporation (SBUX) has come up with more lucrative options for its fans holding ‘My Starbucks Reward’ cards, from Oct 15, 2013.
The existing ‘My Starbucks Reward’ members will receive a 15% discount coupon with their birthday emails in addition to the free food or beverage that they currently get. In addition, members who already have free birthday reward points can now also choose ‘Evolution Fresh’ juices in addition to a bottled Starbucks beverage from participating stores.
Moreover, members who have earned 5 stars will be promoted to the Green Level and those with 30 stars to the Gold level.
Starbucks now allows its members to redeem their reward points at Teavana stores across the U.S. and Canada.
Those who want to register for the loyalty programs can do so by registering for a Starbucks Card at its official website, or by downloading the Starbucks mobile application. The new members will be greeted with a food and drink treat on their birthday at participating Starbucks stores.
The added benefits of the loyalty card are expected to stimulate sales in the coming quarter.
Starbucks holds a leadership position in digital, card, loyalty and mobile capabilities. The company effectively uses social/digital media to drive customer awareness and thereby, improve traffic flow. A large number of its customers are opting for Starbucks Card as their preferred mode of payment which bodes well for the company’s future growth. Starbucks loyalty cards are gaining popularity and at present, nearly one-third of all the U.S. transactions are made by My Starbucks Rewards loyalty members.
The company is adding around 80,000 new loyalty members every week. Moreover, nearly 10% of all transactions in the U.S. stores are made through phone. The company is also witnessing increasing usage of My Starbucks Rewards in countries outside the U.S. like China, Korea and Canada.
Further, the company is trying to broaden the reach of its loyalty program and mobile platform to its CPG business and emerging brands. Starbucks aims to almost double My Starbucks Rewards membership through these initiatives.
Other Stocks to Consider
Starbucks currently holds a Zacks Rank #2 (Buy). Other stocks in the retail restaurants worth considering are Red Robin Gourmet Burgers Inc. (RRGB), Domino’s Pizza Inc. (DPZ) and Dunkin’ Brand’s Group Inc. (DNKN). While Red Robin holds a Zacks Rank #1 (Strong Buy), Domino’s and Dunkin’ Brands hold a Zacks Rank #2.
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