Starbucks' expansive loyalty program exposed its shortcomings
Starbucks Overhauls Rewards Program to Recognize Loyal Customers
Starbucks is set to revamp its Rewards program in 2026, aiming to provide more exclusive benefits for its most loyal and engaged customers. The changes, announced by CEO Brian Niccol, mark a shift away from a "one-size-fits-all" approach that many felt had turned the program into a mere vehicle for discounts and promotions.
The new strategy is designed to reposition Starbucks as a premium brand while offering greater recognition for top loyalty members. Recent changes, effective since June 24, 2025, include eliminating the 25-star bonus for bringing a reusable cup and instead offering double stars on the entire order. This change benefits larger orders but requires a higher spend to earn the same number of stars as before for a single beverage.
Niccol explained these changes as part of a broader strategy to enhance Starbucks' premium positioning and to address declining sales by encouraging customers to spend more per visit. He also noted that the changes aim to grow loyalty, brand love, and engagement.
The Rewards program changes have already shown some positive results. In the last quarter, occasional customers returned to the brand, causing a 4% decline in transactions. However, this decline may be rooted in discounted business, as non-discounted Rewards traffic increased last quarter.
Starbucks Rewards program currently boasts approximately 34 million active members, and about 60% of the company's business is driven by Rewards program members. In the past, Starbucks tried to increase sales by pushing more discounts through the app and encouraging customers to join the program. However, this approach has been criticized for devaluing the program and worsening same-store sales and overall traffic.
The company's board replaced its CEO and overhauled management due to the sales decline. Under Niccol's leadership, Starbucks is focusing on tailoring the Rewards program to recognize loyalty and engagement. The mobile app, with its established ability to make visits to the chain habitual, will play a key role in this new approach.
More specific details about the full overhaul of Starbucks Rewards are expected to be revealed in early 2026. The changes are intended to build brand love and to better honor loyal, high-spending customers by offering more exclusive benefits. By recognizing the engagement of customers, Starbucks aims to reposition itself as a premium brand and to grow its loyal customer base.
- The overhaul of Starbucks Rewards program in 2026 includes a focus on finance, as the changes aim to attract and reward high-spending customers.
- With the shift towards offering more exclusive benefits to its most loyal customers, Starbucks is using technology in its mobile app to enhance the business of investing in customer engagement, thereby repositioning itself as a premium brand.
