CUSTOMER RELATIONSHIP

MANAGEMENT
ASSIGNMENT

SUBMISSION DATE :

SUBMITTED TO : Dr. Pramod Goyal

Done by:
Sumesh Lal
20182MBA0152
MBA 4th SEMESTER
Presidency University
Starbucks offers one of the most sought-after loyalty programs ‘Starbucks Rewards’ program
that offers freebies and discounts to members giving them plenty of reasons to choose Starbucks
over other players. ‘Starbucks Rewards’ program represents a significant portion of the coffee
chain’s recent fiscal growth. Starbucks has reported an increased revenue of $2.65 billion,
attributing their rewards program for most of the increase. Over the last two years, membership
has grown more than 25%, loyal customers use Starbucks’ membership program (16 million
members) for about 40% of sales at the company’s US stores.  Revenue rose 4.6% to $6.31
billion during the quarter from the previous year.

Starbucks has enabled customers to check their gift card balance, points, and mobile orders via
phone, website, in-store, or on their user-friendly app. Real time correspondence of different
channels eliminates the possibility of a lapse in communication. This omni channel capability is
attractive to customers, encouraging engagement at many levels. Customers earn birthday
rewards, free in-store refills and double-star days- these are limited-time promotions during
which members earn twice the points for purchases made.

Mobile app makes online ordering and payment easy. The mobile ordering system acts as a
digital marketing tool, allowing customers to see new items much in advance of launch. The
Starbucks app provides users an inviting and innovative personalized experience, just like the
coffee chain itself. The convenience of using an app acts as a powerful driver of loyalty. The
simple layout of the app makes it appealing to users.

Here’s how My Starbucks Rewards works: Earn 1 Star every time you spend INR 300 with your
registered Starbucks Card at any of their stores in India. The more Stars you earn, the greater the
rewards you receive. Get started by registering a Starbucks Card. As you collect Stars, you move
up to bigger benefits. There are three reward levels.
 1. Green

5 Stars puts you in the Green level, you can earn following benefits;

 Enjoy something Special on your Birthday

We’d like to make your birthday month special by treating you to a tall drink of your
choice.

 Free beverage customization

Enjoy a free beverage customization on any beverage of your choice.

 Free tall hot drink on purchase of 250g whole bean coffee

Enjoy a free tall hot drink on purchase of 250g whole bean coffee.

 Free size upgrades for featured beverages

Enjoy free size upgrades for featured beverages during the first 2 weeks of its launch.

2. Gold

Collect 25 Stars within 12 months and you’re at the Gold level. Once you reach Gold, keep those
benefits for another 12 months by earning another 25 Stars. At Gold, you can earn:

 Enjoy something Special on your Birthday

We’d like to make your birthday month special by treating you to a tall drink of your
choice.

 Free beverage customizations

Enjoy two free beverage customizations on any beverage of your choice.

 Free tall hot drink on purchase of 250g whole bean coffee

Enjoy a free tall hot drink on purchase of 250g whole bean coffee.

 Free size upgrades for featured beverages

 Enjoy free size upgrades for featured beverages during the first 2 weeks of its launch.

 Free Drink for every 10 Stars

We’ll treat you to a tall drink every time you earn 10 Stars.