Sunday, April 7, 2013

Starbucks Loyalty Program Adds Negative Consequences

blogs.starbucks.com

I recently blogged about the subtle changes that Starbucks had made to its Gold Card reward program, noting how the company had quietly eliminated many of the program's perks.

Things just keep getting worse for the Starbucks marketing team. The company has decided to incorporate negative consequences into its loyalty program. That's right, the Seattle coffee giant has now found a way to thump customers who, for whatever reason, have reduced the frequency of their treks for java.

I just received an email from Starbucks notifying me that my card status was sent "back to Green for now" and that the company had reset my accumulated points "to zero." It is punitive enough to take away somebody's privileges but it is excessively harsh to negate all the points someone had accrued in order to earn rewards.

This is an eye-opening experience that doesn't require an ounce of caffeine!

The best loyalty programs reward loyalty, making people feel a sense of accomplish when they reach a certain level. Negative reinforcement is an ill-advised direction to take with a loyalty program. I was always taught that negativity breeds more negativity ... or in this case animosity.

Given an abundance of options, and even the healthy choice of avoiding fatty specialty beverages, people already have an incentive to ditch Starbucks. The company seems intent on giving people yet another reason to seek a coffee alternative.