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Starbucks Loyalty Program for Customer Engagement and Loyalty Essay

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Company and Loyalty Program Overview

Loyalty programs are essential in companies’ business strategy to increase customer motivation and engagement. In addition, it is vital to give people specific incentives to maintain a high level of customer attention about the organization. In this way, one can achieve higher sales figures because people will think that they got goods at a better price. The efficiency of such a loyalty program can be tested using the example of Starbucks Rewards.

Program Operations

The program aims to increase customer engagement and encourage their loyalty to increase sales. This is achieved by providing people with a personalized experience. At the same time, the process of clients joining the program is as easy as possible and can take place through registration in a mobile application (Akcam, 2023).

Benefits for the User and Business

Customers receive reward points for every purchase at Starbucks stores that they can later spend on food or drinks. The program works by the ratio of the cost of products, as customers receive more points for more expensive purchases. This way, the program maintains a fair system by not allowing people to feel cheated. The program works primarily through a mobile application that gives users full access to view their current points and calculate what they can get.

In this way, many prizes are formed that users can pick up for free if they have scored enough points. The company may also provide exclusive discounts, customized promotions, and recommendations to improve the customer experience (Kumar et al., 2019). On the other hand, for businesses, the program provides tools to increase customer loyalty and collect data about them to deliver personalized advertising and the possibility of cross-selling.

Conclusion

In conclusion, the Starbucks loyalty program shows how effectively the company can communicate with customers through personalized promotions and offers. They, in turn, can influence what people think about the organization and how much they are willing to spend money on it. Increasing customer loyalty is a mandatory goal for financial gain.

References

Akcam, B. K. (2023). . Journal of Information Technology Teaching Cases, 13(1), 104-110. Web.

Kumar, N., Mittal, S., & Chu, S. E. (2019). Starbucks in China. Asian Management Insights, 7, 35-40. Web.

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IvyPanda. (2024, December 16). Starbucks Loyalty Program for Customer Engagement and Loyalty. https://ivypanda.com/essays/starbucks-loyalty-program-for-customer-engagement-and-loyalty/

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"Starbucks Loyalty Program for Customer Engagement and Loyalty." IvyPanda, 16 Dec. 2024, ivypanda.com/essays/starbucks-loyalty-program-for-customer-engagement-and-loyalty/.

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IvyPanda. (2024) 'Starbucks Loyalty Program for Customer Engagement and Loyalty'. 16 December.

References

IvyPanda. 2024. "Starbucks Loyalty Program for Customer Engagement and Loyalty." December 16, 2024. https://ivypanda.com/essays/starbucks-loyalty-program-for-customer-engagement-and-loyalty/.

1. IvyPanda. "Starbucks Loyalty Program for Customer Engagement and Loyalty." December 16, 2024. https://ivypanda.com/essays/starbucks-loyalty-program-for-customer-engagement-and-loyalty/.


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IvyPanda. "Starbucks Loyalty Program for Customer Engagement and Loyalty." December 16, 2024. https://ivypanda.com/essays/starbucks-loyalty-program-for-customer-engagement-and-loyalty/.

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