Starbucks co-branded with Chase Bank and introduced a Prepaid Visa Debit Card that transforms Starbucks’s loyalty program to a whole new level. The loyalty program enables the coffee drinkers to collect points for every payment they make with the card at the Starbucks store throughout the United States. Starbucks is not the only store where the Chase Bank customers can shop. The cardholders can shop at any stores, physical or online stores, where Visa has their services.
Whoever applies for this card program will be upgraded to the Gold Star Status of Starbucks loyalty card. The cardholders will be given VIP privileges. They would receive special rewards on their birthday, get refilled drink for free and skip the line in the stores. On top of that, they could potentially get double stars on chosen days every month.
This Starbucks’s loyalty program does create trilateral benefits among the issuing bank, co-branded company and the customers. Through providing prepaid card payment solutions for Starbucks to implement its new loyalty program, Chase Bank can further attract Starbucks advocators to apply for the cards and further increase the sales. In Starbucks’s perspectives, it can utilize this payment solutions platform to conduct its marketing strategies, keep track on consumer’s spending and analyze consumer behavior and shopping patterns.
The benefits for Chase Bank from this program
The benefits for Starbucks from this program
The benefits for card users from this program
Starbucks is one of the biggest coffee retailers in the world. This loyalty program is first practiced in the United States. If this loyalty program does help Starbucks to attract more potential clients and further enhance their sales, they can also launch this loyalty programs elsewhere in the world. Their dominant status in coffee retailing industry will be further strengthened and they can further broaden its market shares. As for prepaid card industry, this kinds of business models, the co-branded business partnership between a commercial bank and coffee retailers, could potentially be widely practiced and become a norm.