Starbucks is reportedly gearing up to roll out a new personalized rewards program, designed to give customers better incentives based on their preferences.
The popular coffee chain aims to boost its incentives by offering customers what they want, based on what Starbucks already knows about them. With the personalized rewards program, each customer will get unique Starbucks offers via email and the Starbucks app, taking Starbucks Rewards to the next level.
Starbucks Personalized Rewards
Many Starbucks customers have their own coffee-related habits, frequently hitting a coffee shop around the same time each day and ordering the same thing over and over. If they use the app, Starbucks knows what its customers get and when they get it.
With that information, Starbucks can determine what each customer likes most and when they typically buy it so it can anticipate and offer rewards accordingly.
"Starbucks has delivered personalized offers to customers directly on the front screen of the mobile app," Starbucks said earlier this week, detailing its five-year growth plan.
"By early 2017, the company expects to complete the rollout of suggested selling and recommendations (suggesting items for pairing or additions to a customer's order) during Mobile Order and Pay checkout, which the company believes will further fuel engagement and growth."
Food At Starbucks
Moreover, starting early next year, the Starbucks app will reportedly prompt customers to add food items to their orders, Starbucks chief technology officer Gerri Martin-Flickinger tells Business Insider.
To further sweeten the deal, Starbucks may also offer extra reward points when buying pastry items. The company also plans to expand its food offerings to include more options.
Using Customer Data For Personalized Rewards
The Starbucks app collects a good amount of data each time customers use it. Starbucks basically knows how often customers visit Starbucks, what time of day they prefer, and where they live.
Leveraging customers' account information, listed preferences, purchase history and even local weather, Starbucks can improve its rewards program by offering what customers are most likely to want. On a hot day, for instance, Starbucks could tailor its rewards to offer your favorite frappuccino.
The new personalized rewards program started rolling out a couple of weeks ago on mobile and it's reportedly proving successful already, prompting customers to visit Starbucks more frequently and spend more.
These personalized incentives will expand beyond the mobile Starbucks app. The company aims to offer this personalized experience on all screens in the future, which could mean anything from a smartwatch display to a drive-thru window.
