Despite devaluing its rewards program for customers by 20% in April, Starbucks Rewards continues to draw in more members by 16.5% year-on-year (YOY) in the latest quarter (1Q/16).
According to First Annapolis , a consulting concern, Starbucks will be launching an open-loop Visa prepaid card with Chase and plans to enhance personalization of marketing loyalty program.
Starbucks says with the reward changes, it laid the foundation for customers to earn Stars Everywhere which accelerates the pace at which customers earn rewards redeemable only at Starbucks.
Over $1.2 billion was loaded on Starbucks cards in the U.S. and Canada in the latest quarter. Total program spend growth was 22% YOY for the quarter.
There are now 19 million users of the Starbucks app in the US. Mobile Order & Pay has a run rate of 8 million orders per month up from 6 million in the prior quarter.
Starbucks noted rewards can now be redeemed in Mobile Order & Pay.
In June, Starbucks will open at Shanghai Disneyland which
is expected to be the highest grossing retail location.
The Company noted EMV/PIN acceptance is not anticipated to adversely affect in-store transactions.
Starbucks now operates in 71 markets across the globe.
Comparable store sales increased 7% in U.S. and 6% globally.
1Q/15: 10.3 million
2Q/15: 10.4 million
3Q/15: 10.2 million
4Q/15: 11.1 million
1Q/16: 12.0 million
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