The Secret Starbucks Ingredient

I used to go to Starbucks almost every day back when I was still studying for my undergraduate degree. Aside from the fact that there's a Starbucks branch conveniently located a few minutes away from where I lived, the relaxing coffee shop vibe of Starbucks made it the ideal hangout place for university students like me. While I'm admittedly unfamiliar with Starbucks' image in Hong Kong or in any other country except my own, back in the Philippines, Starbucks is generally perceived to be an iconic coffee chain offering good quality service and, well, good coffee.

Different Starbucks card designs in the Philippines.

Aside from being a well-known brand worldwide, part of what made Starbucks the success that it is back in my home country was the Starbucks Card - a stored value card customers could use to pay for any Starbucks product or merchandise. Back when it was first introduced in the Philippines, customers were given certain rewards (such as free drinks, for instance) upon accumulating enough stars for every purchase of a Starbucks beverage or food item. In order to encourage customers to register online, cardholders were given complimentary drinks upon registration. In addition, once registered, customers could easily track their "points," view their transaction history, reload online and even protect their balance if they lose their cards. Registered customers are also given exclusive, personalized offers every now and then either via email or SMS. All in all, the benefits of being a cardholder, as advertised by Starbucks, definitely outweigh the cons (if there are any, at all). You need not pay any annual or monthly membership fee and the one-time payment for the card is automatically transferred as a balance to your account.

The Starbucks Card app on Facebook.

In my opinion, what makes this marketing tactic highly successful is the brand's integration of its loyalty card program with the power of social media and technology. Aside from having a physical rewards card, cardholders are given additional Starbucks Rewards features via the brand's Starbucks Card app, which is available on Facebook's platform and is also downloadable on the IOS and Android App Stores. By encouraging customers to download such apps for extra rewards and features, Starbucks could also monitor consumer behavior and track trends in its customers' preferences. Aside from this, Starbucks also regularly holds social media promotions every now and then, asking customers to share certain hashtags which would enable them to receive freebies from the coffee chain. By going all out on its rewards program and its advertising campaigns, Starbucks is able to successfully retain customer loyalty, while maintaining its edge among its newer competitors.