In April 2016, Starbucks made a change to their popular Rewards Program. While lots of businesses have rewards programs, this one is different in execution. Watching it unfold over the past 9 months, the Starbucks program is nothing short of spectacular, from a marketing point of view.
It’s innovative, it’s completely opt-in, it’s (fairly) soft-touch, it rewards their best customers, and it seeks to know those customers at an individual level. But the thing that’s amazing is that it does this all at scale, using a data-driven approach.
Using data to do better targeting is expected of today’s marketers. But what Starbucks is doing takes it to the next step – they are using data to know their customers’ preferences and habits, and using them to create a feedback loop that amplifies buying behavior. It serves as a great lesson for anyone in marketing today. Let’s have an in-depth look.