Starbucks introduced a Reward Loyalty Program in which customers collect stars to get exciting rewards. This program drives 40% of Starbucks total sales. By adapting the gamification method, Starbucks added a reward loyalty program to their already established app. This move drastically increased sales and digital traffic. They brought mobile payment, customer loyalty, and content partnership in one powerful app. Customers started registering for My Reward via their app. They are given stars (points) in exchange for their interaction in the app or purchase made. Question: Beside the customer retention and higher sales, what will be the advantage of Starbucks in the implementation of this rewards system?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
icon
Related questions
Question
Starbucks introduced a Reward Loyalty Program in which customers collect stars to get exciting rewards. This program drives 40% of Starbucks total sales. By adapting the gamification method, Starbucks added a reward loyalty program to their already established app. This move drastically increased sales and digital traffic. They brought mobile payment, customer loyalty, and content partnership in one powerful app. Customers started registering for My Reward via their app. They are given stars (points) in exchange for their interaction in the app or purchase made. Question: Beside the customer retention and higher sales, what will be the advantage of Starbucks in the implementation of this rewards system? NOTE: please answer asap! Thank you
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Product and Service classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles Of Marketing
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
Marketing
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
MKTG 12:STUDENT ED.-TEXT
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:
9781337407595
Author:
Lamb
Publisher:
Cengage
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning