Starbucks announced plans to switch up its North American loyalty program in a bid to keep growing its membership.
Ahead of its annual shareholders meeting Wednesday, Starbucks announced plans to switch up its North American loyalty program in a bid to keep growing its membership as it continues rolling out delivery.
Other restaurant companies also have been investing in their app-based rewards programs to grow consumer loyalty. CEO Kevin Johnson first teased that changes would be coming to Starbucks Rewards during the company's first-quarter earnings call. The number of rewards members increased 14 percent compared to the same time last year during that quarter. The decade-old program counts more than 16.3 million people as active members, who account for about 40 percent of Starbucks' transactions.
But it has been more successful convincing customers to use its mobile app, which lets them skip the long line by ordering and paying ahead ahead of time. The app also builds awareness for the program by pushing non-members to join and gives the company more access to customer data, which can help them fine-tune promotions and new products.
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