As CEO of Starbucks, Howard Schultz always touts the iconic brand’s customer experience.
During Starbucks’ recent 24th Annual Meeting of Shareholders, with more than 2,800 partners, shareholders, invited guests, and board members in attendance, Schultz discussed the company’s record financial results and introduced the company’s next level of social impact initiatives.
“There are very few consumer brands in the world–products or experiences–that have created both an undeniable customer attachment to the brand while also seeing universal acceptance,” said Schultz. “And, we take none of that for granted. We have to earn it every day. In addition to earning our customers’ trust and respect, we also cannot be a bystander at a time in our nation’s history when government gridlock, economic disparity, and partisan polarization continue to stunt our progress. In our view, the private sector must contribute more as an economic and social force in partnership with all other sectors.”
By bringing the Starbucks Experience to customers outside its retail stores in a brand accretive way, Starbucks Channel Development continues to demonstrate industry leading growth with $1.7 billion in revenue in fiscal year 2015 and a 17.4% growth in operating income.
At the core of Starbucks digital ecosystem is loyalty, specifically, the My Starbucks Rewards loyalty program.
Last month, Starbucks unveiled changes to its loyalty program, which created a level playing field for Starbucks customers to earn to stars for every dollar spent. Despite some negative customer feedback regarding changes made to the loyalty program, since then more than 500,000 customers have signed up for Starbucks Rewards. What’s more, total active members of Starbucks Rewards are now reaching more than 12 million members in the U.S., up 1 million over the past quarter. The new program will go into effect on April 12.
Starbucks also entered into a payments agreement to accept Chase Pay. Starbucks expanded this partnership with the announcement of a new product called the Starbucks Rewards Prepaid Card from Chase.
Available by the end of this year, the Starbucks Rewards Prepaid Card is a reloadable prepaid card that allows customers to earn stars for all card purchases made virtually anywhere that Visa is accepted. Customers will be able to apply for the Starbucks Rewards Prepaid Card through the Starbucks Mobile App or Starbucks.com. This new model is the beginning of Starbucks opening up its digital ecosystem as well as extending its payment platform.