3 Things About Customer Loyalty You Can Learn From Starbucks

Starbucks cup of coffee in coffeehouseFor its customers, Starbucks is a religion. Each morning they follow the ritual, grabbing their caramel latte, paying for it with their smartphones and wandering through the city with iconic cups in their hands. Sipping coffee became a treat and a natural part of the everyday routine to such an extent that they don’t feel the need to ask: “Why can’t I live without Starbucks? What did they do to make me such a loyal customer?” But we investigate the topic and share with you some insights on great Starbucks practices that you should try to mimic and adapt to your business. The key to their success is real-time personalization across many devices and touch-points.


Turn visitors onto loyal customers. Download free ebook


1. Invest in technology, not in ads

Howard Schulz says that the key to Starbucks’ success was investing in digital technology, not digital ads. Instead of pumping money into yet another banner, Starbucks team focused on customer experience and finding the best tools to improve it – not the other way round. It’s about thinking big and concentrating on purpose: using data collected about customers to build lasting relationships.
You need tools to deliver the best experience, but first you must know what that experience is and what do you want to offer. Invest in software that will help you shape the experience according to your best knowledge on customers. Investing in technology, not in ads, is also a sign of a need to find brand new solutions and new modes of communication. Don’t reduce your marketing to doing more and repeating your actions over and over again, but try to find out how you can deliver your message better instead.

2. Loyalty program must be convenient… and should be mobile

My Starbucks Rewards Program, as the company reported, grew 28 percent year-on-year to 10.4 million members in the US alone in the latest quarter. The clue to its success is to involve mobile channel, basing on deep understanding of how customers use it. As 60% of consumers’ time spent on mobile is spent on mobile devices, finding a good idea to utilize the channel seems vital. People love mobile because it gives them convenience they seek: access to all information needed in a blink of an eye, in any place. Saving time is also a huge advantage: you can compare prices or check product reviews right in the store before you buy. That’s why mobile became a center of Starbucks’ loyalty plan, which allows customers to pay for their drinks with a smartphone and receive discounts or bonuses for their purchases. “Mobile payments now represent a whopping 20% of all in-store sales in the US, more than double the figure from just two years ago, and the coffee house is processing nearly nine million transactions each week”, expert from Business Insider comments.
Starbucks came up with a great idea of innovative loyalty program that doesn’t involve collecting stamps on a piece of paper or looking for a plastic loyalty card each time they come to the store. They followed consumers in their love for apps and created mobile loyalty program tailored to their needs.

3. Teaming up with others

The phrase “Deliver value” is repeated as often as rarely it is put in practice. We stumble upon it in numerous blog posts, ebooks, and articles. So that’s a shame that we prefer to shout it in fellow marketers’ ears instead of practicing. How do you deliver value? Starbucks has some ideas. Apart from all the discounts and benefits of a loyalty program and beyond the unmeasurable emotional benefits of its customer service, it also became a place where you can get much more than coffee. Thanks to a series of partnerships (e.g. with Spotify and Lyft) they can offer their customers many great exclusive deals for other services.

 

To sum up, what Starbucks can teach you how to increase customer loyalty?
1) Use data to build relationships and learn what your audience really wants
2) Create multi-channel experience and focus on mobile
3) Invest in technology to implementing your vision instead of following others and buying more and more ads
4) Deliver real value. Partner up with other companies to create great cross-offers.

SALESmanago is a Customer Engagement Platform for impact-hungry eCommerce marketing teams who want to be lean yet powerful, trusted revenue growth partners for CEOs. Our AI-driven solutions have already been adopted by 2000+ mid-size businesses in 50 countries, as well as many well-known global brands such as Starbucks, Vodafone, Lacoste, KFC, New Balance and Victoria’s Secret.

SALESmanago delivers on its promise of maximizing revenue growth and improving eCommerce KPIs by leveraging three principles: (1) Customer Intimacy to create authentic customer relationships based on Zero and First Party Data; (2) Precision Execution to provide superior Omnichannel customer experience thanks to Hyperpersonalization; and (3) Growth Intelligence merging human and AI-based guidance enabling pragmatic and faster decision making for maximum impact.

More information: www.salesmanago.com

SALESmanago launches powerful personalisation tool to drive eCommerce revenue
SALESmanago launches powerful personalisation tool to drive eCommerce revenue

    Developed to answer marketers’ need for increased personalisation, this new AI-driven tool empowers eCommerce teams with scenarios which create tailored customer experiences News comes as Black Friday eCommerce results highlight that 19% more interaction was created by marketers using personalisation techniques    Krakow/Poland, January 15, 2025:  SALESmanago, Europe’s leading Customer Engagement Platform with […]

SALESmanago partners with PrestaShop to expand AI-driven customer engagement reach to European eCommerce businesses
SALESmanago partners with PrestaShop to expand AI-driven customer engagement reach to European eCommerce businesses

    Channel partnership follows SALESmanago’s recent acquisition of Leadoo, as the company furthers its European Customer Engagement Platform expansion   Krakow/Poland, December 18, 2024: SALESmanago, the SaaS powerhouse with over 3,000 customers, has announced a strategic channel partnership with PrestaShop, one of Europe’s most widely used eCommerce platforms which enables over 300,000 businesses to […]

Case Study: How Subdued Scaled with SALESmanago
Case Study: How Subdued Scaled with SALESmanago

  Subdued’s ROI reached a staggering 2065%, with 50% of sales driven by automation. With automated workflows and customer segmentation in place, Subdued could focus on future expansion, backed by actionable insights from customer data.​   About SubduedSubdued, a brand for independent teenagers, started in Italy in the ’90s and now operates 130 stores globally, […]

Black Friday 2024 Decoded: Key Insights to Boost Your eCommerce Strategy
Black Friday 2024 Decoded: Key Insights to Boost Your eCommerce Strategy

    What separates Winners from Wishers? Yes, it’s data. In the high-stakes arena of eCommerce, Black Friday is no longer just a shopping event—it’s a strategic battlefield where marketing precision determines victory. This year, eCommerce brands have continued to leverage advanced marketing techniques to engage their customers, drive higher conversions, and maximise sales. Here […]

SALESmanago and Leadoo join forces to build Europe’s largest Customer Engagement Platform and drive mid-market eCommerce growth
SALESmanago and Leadoo join forces to build Europe’s largest Customer Engagement Platform and drive mid-market eCommerce growth

    SALESmanago acquires SaaS marketing technology conversion platform Leadoo as part of mission to become Europe’s number one CEP Helsinki-headquartered Leadoo will strengthen SALESmanago’s presence in the UK, Nordics and Benelux, powering eCommerce customer growth with deep insights and personalisation   Krakow/Poland & Helsinki/Finland, November 26th, 2024: SALESmanago, the European SaaS powerhouse with over […]

CMO Role Getting Too Tight? Try Being A Growth Hacker Instead
CMO Role Getting Too Tight? Try Being A Growth Hacker Instead

    by Katrin Lewandowski, Senior Marketing Director at SALESmanago   The year is 2024, and the traditional Chief Marketing Officer (CMO) role is experiencing a transformation. Prominent companies, including brands like UPS and Etsy, have moved to eliminate or repurpose the CMO position—redistributing its responsibilities to roles such as Chief Commercial or Strategy Officers. […]

Skeletons in the eCommerce closet. Which one is your worst nightmare?
Skeletons in the eCommerce closet. Which one is your worst nightmare?

    As Halloween draws near, the urgency to unveil and exorcise the lurking skeletons from eCommerce closets becomes increasingly palpable. Just as the haunted season prompts us to confront our fears, the digital landscape compels businesses to confront the formidable challenges that often remain concealed.   In 2024, the stakes for eCommerce companies have […]

eCommerce Booms and Stagnates
eCommerce Booms and Stagnates

    By Brian Plackis Cheng, CEO at SALESmanago   Commerce is fickle; it stagnates and booms. Customer journeys are non-linear. And these are the things we know for sure. Without actionable customer data and personalised journeys, eCommerce companies are losing customers and prospects, eroding their brand, and sacrificing their competitive edge.    Embracing zero-party […]