Starbucks Card

April 25, 2008 at 1:13 PM · 9 comments

in Convergence,Services

The Setup

For many of you who aren’t aware (yet) of my coffee predilections: I consume coffee. At one point in my life, I would routinely ingest 5-6 of the 10-12 cup capacity pots o’ coffee per day. That may be considered a lot of coffee. These days, my schedule and proximity to coffee-emitting sources generally lets me squeeze in 1-6 cups of coffee, although not always everyday; I frequently go without coffee for several days at a stretch.

Now, some of you may have heard of Starbucks’ recent attempts to break out of its rut and to attract back its original fans. I think the intent is to divest itself of all the “me-too” people that have caused too much sales stagnation, and to bring back customers who were the lifeblood of the company’s coffers that had drifted on to other vendors that offered excellent coffee beverages at reasonable prices.

Like many other original Starbucks patrons, I had found myself wandering into other establishments to acquire coffee, as time and location permitted:

  • McDonald’s
  • Burger King
  • Dunkin’ Donuts
This often occurred during morning commutes, as I was in-transit from one location to another.

The Premise

Starbucks [SBUX] has recently started, alongside its launch of the Pike Place Roast coffee to its outlets, a new program incorporating their Starbucks Card.

Originally, the Starbucks Card online registration system allowed you to register up to three Starbucks Cards that you own, to be able to track and reload them online.

The new changes involve the following three benefits when you order with your registered Starbucks Card:

  1. When you order a bar beverage (latte, mocha, americano, etc.), you have the option to add, for free, a variety of syrups and milks…
  2. When you order a drip coffee, you can have free refills…
  3. When you buy some whole bean coffee, you get a free tall-size drip coffee…

The Action

So, being intrepid, having been bestowed a Starbucks Card by others, and having some free time, I decided to give the new Starbucks Card program a whirl.

Thus far, I’ve tested the New Feature #2 above. This is important to me, given my past buying habits for coffee at various establishments, including the major ones I’ve mentioned above.

In short, it’s fabulous! I’ve tried a few different scenarios:

  • I bought a coffee, drank it, got a refill, drank it, got another refill, drank it, got another refill… all at the same Starbucks without leaving.
  • I bought a coffee at one Starbucks, drank it while driving to another Starbucks, and got a refill at the second Starbucks.
  • I bought a coffee at a Starbucks, left to go see some patients (while drinking my coffee in the meantime), came back to the same Starbucks a couple of hours later, and got a refill.

Repercussions

This has caused the following effects to my lifestyle:

  • I’ve resumed visiting Starbucks on a regular basis again, after a several-years’ hiatus;
  • I’ve curtailed severely my visits to other coffee-serving establishments, except for the ones that also offer solid food substances and free Wi-Fi;
  • I’ve made a few additional purchases at Starbucks, other than just drip coffee, like flavored syrups.
So, based upon my own personal experiences, Starbucks has profited from me dramatically in recent weeks, compared to their past performance over the previous several years, despite giving away a few cups of coffee. As many of you know, the ability to offer “drink as much as you want” is highly similar to the all-you-can-eat buffets that dot the American landscape and which make a considerable profit. Additionally, the use of the Starbucks Card itself reinforces brand recognition (as opposed to merely having folks use cash) and puts money upfront into Starbucks’ coffers– just like many other gift card programs.

Next Steps for Starbucks Card Program

A few new features for the Starbucks Card program that I’m recommending would be:
  • Ability to transfer balances between registered cards
  • Ability to register an unlimited number of registered cards
  • More associated extras/benefits keyed to “limited issue” cards
  • Free Wi-Fi access for Starbucks Card owners

Enjoying that Last Drop

So, while I’m certainly curious to see what else may be coming from Starbucks (if anything), I’ll be enjoying another cup of coffee. And perhaps another one, assuming I’m passing close to a Starbucks. :)

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