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Product case study
Case study of star bucks loyalty rewards program
From beans to stars: Analyzing recent changes in the rewards structure
Executive Summary
Starbucks is one of the most successful coffee companies in the world, and a big part of its success is due to its loyalty program. I was interested in conducting a case study by collecting and analyzing recent changes to its Reward Program along with User Reviews, and Engagement Data to identify Growth Opportunities.
Duration
3 weeks (July 1 — July 22, 2023)
Goal
For outlining the goal of this project, I utilized 3 attributes that reflect the principles of a product north star by breaking a business problem into the component parts that need to be analyzed to identify the root cause of the problem and develop a solution.
Introduction
Starbucks is an American multinational coffee company and coffeehouse chain. Starbucks’ first store was inaugurated in 1971 at the Seattle Pike Place Market. As of 2023, it is the largest coffeehouse chain in the world, with over 33,000 stores in 80 countries. The Starbucks Loyalty Rewards program was launched in 2009 on Dec 26th, and it has grown to over 30+ million active members to date.
What is a Reward Program?
Reward programs are designed to build loyalty, as they provide a form of rebate to regulars. They also are seen by consumers as a good way to save money, particularly when inflation is high.
They are also meant to lock customers into a particular company. In the case of Starbucks, the rewards program reduces the likelihood that its customers will buy coffee from competitors like Dunkin, Costa Coffee, Tim Hortons, or Peet’s Coffee.
Even though airline rewards programs have been around for years, rewards programs among large restaurant chains are relatively new. Sandwich chain Subway, for example, didn’t start one until 2018. Fast-food company McDonald’s only launched its loyalty program in 2021.
