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Starbucks faces backlash over stricter conditions for new rewards program
A Starbucks takeout cup inside a cafe in Seoul / Courtesy of Starbucks Korea
By Ko Dong-hwan
Company highlights ‘more diverse benefits’
Starbucks Korea is facing customer criticism over its recently updated Rewards program, which makes earning stars more difficult than before.
Starbucks Rewards allows customers to earn stars by paying with the company’s smartphone app or payment card. The more they spend, the more stars they collect. Once customers reach a certain number of stars, they can exchange them for coupons offering perks like free size upgrades, food, drinks or merchandise.
Under the updated Rewards program, customers now need to spend 3,000 won ($2.17) to earn a star, up from the previous 1,000 won. Many customers were especially angered that Starbucks did not publicly announce the change. Instead, the company emphasized the expanded range of benefits that customers can choose from with their collected stars.
The higher spending requirement has triggered complaints from the program’s more than 14 million users. Under the previous system, customers with a free coupon for a tall-size iced Americano could upgrade to a venti by paying the 1,400 won difference and still earn a star. That reward is no longer available under the new program.
Users of the “One More Coupon,” which Starbucks offers to all Rewards members, have also noted downsides of the new program. The 60 percent discount coupon is issued 30 minutes after a customer purchases a tall or larger size of one of four selected drinks. However, when the coupon is applied, the price of most drinks falls below 3,000 won — meaning customers no longer earn a star.
Reusable tumbler users have also voiced frustration with the updates. Previously, customers could earn an extra “eco star” by bringing their own tumbler. Under the new system, however, those who use a free coupon and spend less than 3,000 won on their drinks no longer receive an eco star — even if they use a tumbler.
“I just found out that you now have to spend at least 3,000 won for a Reward star. Yesterday, I used a mobile coupon and my Starbucks card to order a drink. Since I only spent 2,500 won from my card, they didn’t give me the One More Coupon. It was frustrating because I never saw any prior notification,” a Starbucks customer wrote online.
Starbucks positioned the change as part of a comprehensive revamp of its Rewards program, rather than a mere tweak to the spending requirement for earning stars.
“It is not that we have just changed that minimum value. We have restructured the whole Rewards program,” a Starbucks official said.
“So this new condition should rather be recognized as one aspect of the whole deal. We have analyzed patterns in our customers’ demands and came up with the new program to improve our benefits for them.”
The new Rewards program took effect on June 17, expanding coupon eligibility from Gold members only to include Green members as well. The membership tiers range from Welcome (entry level) to Green (unlocked with five stars) and Gold (unlocked with 25 stars). The program also now offers a wider variety of coupons, including options for size upgrades, free drinks, food and merchandise.