Starbucks Expands Loyalty Program to Teavana and Grocery Stores


Starbucks will soon allow loyal customers to earn Star rewards at Teavana and at the grocery store in an effort to double its Starbucks Card membership,

Starting in May, when customers purchase packaged coffee at their local grocery store, they'll also earn My Starbucks Rewards Stars. Moreover, the company will integrate My Starbucks Rewards loyalty program with emerging Starbucks brands. Specifically, beginning next month, more than 300 Teavana stores will be ready to accept Starbucks card payments. Stars can be redeemed at Starbucks retail stores; customers will be able to continue earning stars for purchases at Starbucks stores.

Currently, Adam Brotman, chief digital officer, reported that Starbucks generates more than 3 million U.S. mobile payment transactions per week. These transactions account for about 10% of the company's total U.S. revenue. With these new loyalty features, he expects the number of loyalty customers to double in fiscal 2013 -- altogether that would amount to 9 million loyalty members.

Starbucks launched this cross-channel, multibrand loyalty program in following the company's Blueprint for Profitable Growth strategy. Moreover, these moves come after seeing increasing user traction on its mobile app. The company reports that mobile users have embraced the Starbucks mobile app because it enables them to track their loyalty status in an creative and interactive way.

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