To attract new customers and strengthen the loyalty of existing patrons beyond its coffeehouses, Starbucks Corp. is teaming up with ride-sharing service Lyft Inc. Under the agreement, customers who use Lyft’s mobile app will earn loyalty “stars,” redeemable for food and drinks at Starbucks outlets. Lyft drivers can also receive loyalty stars through the partnership. They even have the option to earn immediately a gold status, which normally takes several months to achieve, in the coffee giant’s loyalty program. They can also receive loyalty stars via tips from riders.
“Our digital loyalty ecosystem will strengthen Lyft’s ability to attract and retain customers in a highly profitable way, while at the same time accelerating the incrementality of redemption of rewards,” Adam Brotman, chief digital officer of Starbucks, said in a statement. Starbucks didn’t disclose the details of the multiyear agreement with Lyft, which is expected to commence later this year.
The pairing is the newest addition to Starbucks’ lineup of corporate partnerships that focus on its customer loyalty program. Earlier this year, it forged a partnership with streaming music company Spotify. Starbuck customers can earn loyalty stars by signing up for Spotify Premium, which can also give them a chance to influence in-store playlists. Another recently announced arrangement is with The New York Times. Currently, Starbucks patrons get free access to 15 NYT articles when using the company’s mobile app. By 2016, however, Starbucks mobile app users can access top news of the day and more timely articles for free.
Also central to Starbucks’ recent wave of tie-ups is its mobile system. The Seattle-based coffeehouse chain is keen on beefing up its digital strategy and is working on making it easier for customers to order and pay for their purchases using their smartphones and other mobile devices. Chief executive Howard Schultz revealed that 20 percent of Starbucks purchases worldwide were made using a mobile device.
“Our digital loyalty ecosystem will strengthen Lyft’s ability to attract and retain customers in a highly profitable way, while at the same time accelerating the incrementality of redemption of rewards,” Adam Brotman, chief digital officer of Starbucks, said in a statement. Starbucks didn’t disclose the details of the multiyear agreement with Lyft, which is expected to commence later this year.
The pairing is the newest addition to Starbucks’ lineup of corporate partnerships that focus on its customer loyalty program. Earlier this year, it forged a partnership with streaming music company Spotify. Starbuck customers can earn loyalty stars by signing up for Spotify Premium, which can also give them a chance to influence in-store playlists. Another recently announced arrangement is with The New York Times. Currently, Starbucks patrons get free access to 15 NYT articles when using the company’s mobile app. By 2016, however, Starbucks mobile app users can access top news of the day and more timely articles for free.
Also central to Starbucks’ recent wave of tie-ups is its mobile system. The Seattle-based coffeehouse chain is keen on beefing up its digital strategy and is working on making it easier for customers to order and pay for their purchases using their smartphones and other mobile devices. Chief executive Howard Schultz revealed that 20 percent of Starbucks purchases worldwide were made using a mobile device.
This is a good strategy.
ReplyDeleteGreat partnership for Lyft. They need more brand awareness and recognition.
ReplyDeleteStarbucks did a very good way to push their digital platforms.
ReplyDeleteThis is awesome!
ReplyDeleteLove both of these companies.
ReplyDeleteTake a Lyft and earn a free cup of coffee? Why not! :) This will surely attract new customers for both companies.
ReplyDelete