The Starbucks Gold Level Rewards Card [A Review]
Starbucks Gold Card (Introduced Summer, 2008)
While stopping by my most often visited Starbucks store last week in San Francisco, the barista recognized me as “The gold card guy” and “the guy who is in the Christmas Blend fan club” and asked if I’ll have the usual (Grande Christmas Blend). She then checked to see if I had heard of the new Starbucks Gold Level Rewards. I had not but I was a Gold Card member and wanted to hear more. Half way into this pitch she was stumbling over the explanation and just told me to go to the website to read all about it because she still wasn’t sure what it meant but she did assure me all Gold Card holders would be “upgraded” for free.
What’s Starbucks Gold? Well, it’s a program that started at the end of Summer, 2008 as a $25 a year membership that gives you benefits for being a loyal customer (despite the fact you’re paying for those benefits). Starbucks Gold has the following benefits:
- 10% off most purchases in participating U.S. Starbucks stores (the main benefit)
- A free drink when you purchase your membership in-store (one time savings)
- Option to pay however you’d like (cash, credit card, etc.) (as opposed to being forced to pay?)
- A free beverage on your birthday (birthdays ftw, one time savings)
- Exclusive offers and discounts throughout the year (umm, yeah, whatever)
- Free Wi-Fi access for up to 2 hours each day in participating Starbucks stores (good, but the free Starbucks stored value card gives you the same thing)
After 1.5 years as a member, I never once received an “exclusive discount or offer” despite visiting 4+ days a week. Whatever, I guess. I did use those 2 hours of free wi-fi at least twice a week for meetings and times when I just wanted to get out of the house and work with a cup of coffee at my side. It’s a nice benefit. I’d have to spend $250 a year on Starbucks in order to validate this $25 purchase at 10% discounts on most things in the story. I spend $250 every 3 months ($1,000 a year) so it’s a great deal since I’m getting $100 back every year w/ 10% off. So yeah, overall, the program was pretty cool. In fact, when my membership was supposed to lapse in mid-August, Starbucks sent me a letter notifying me that they were going to extend Gold Memberships for free through January 5th, 2010 (a free 6 months) and I didn’t know why but now I do.
Starbucks’ New Rewards Program:
Starbucks has introduced the most confusing program ever that is equivalent to the rewards programs that frequent fliers deal with from those pesky airlines. This page on Starbucks.com does a decent job explaining how the program works. I’ve embedded the “easy to understand” graphic below that’s not very easy to understand.
Welcome Letter to Gold Level Rewards
So, based on this, any Starbucks “Gift card” or “card” holder that can store a balance is just a normal customer that has money to spend. Once they visit Starbucks.com and register their card, they get a free beverage on their birthday (as long as they keep a balance on their card). This is a small thank you for allowing Starbucks to email you marketing materials and know your age which is also good data to have on their customer who was previously anonymous.
My Gold Level Rewards Card
That icon “5 star” that you see is a representation of “transactions”. Every transaction in a United States Starbucks Operated store counts as one star. There’s no expiration on those starts accruing so if you go 5 times in a day or 5 times in a year, you’ll still get those points. Once you get 5 transactions, the benefits of free wi-fi, free coffee refills (brewed only, Clover Brew is excluded) and other benefits are now yours. Remember, you must use that registered card in those transactions to qualify which means you’ll need to have money on that card.
This is great for the occasional person that visits Starbucks. They get some great benefits like the ability to add soy to their latte for free or get a refill on that grande coffee and use the Wi-Fi for 2 hours without ever paying. It’s nice and you only have to use that Starbucks card 5 times and register it to get those benefits. I’m all about Starbucks opening up this previously $25 a year program to all customers.
Introducing Starbucks Gold Level Rewards:
Free Drink every 15 Transactions sent to you via US Mail
What’s this talk of “gold level rewards”? Well, once you accrue 30 transactions on your Starbucks Card, you are now a “Gold Level” member and you’ll get a free drink for every 15 transactions. Remember, these can be the purchase of coffee, tea, cookies and even ground coffee by the pound. I don’t think it counts on the purchase of coffee appliances (espresso machines and other misc. things they sell in stores). You also get a “personalized gold card” in the mail that makes you look fancy and special every time you go in the store. All of the “green level” benefits roll over to this new card.
There are always finer details so I went to their Rewards FAQ to find out more:
What is a star and how do I earn one?
You can earn stars and receive in-store benefits simply by paying for a transaction with any Starbucks Card registered to your account (at participating Starbucks stores in the U.S.) You will be able to track your stars online by logging into your account.
What is the main benefit at the Gold Level?
The ability to earn free drinks based on visits is a key benefit of the Gold Level. People told us they wanted to be recognized and rewarded for their frequent visits to Starbucks and they also wanted free drinks. The personalized, exclusive card is another way to provide recognition for the people who visit us the most. Finally, the ability to receive all the benefits previously available only in Starbucks Card Rewards was a key improvement to the program based directly on customer feedback. (Current Starbucks Gold members did not receive those benefits.)
How will I receive my free drinks?
We will send you postcards that you can bring into stores to redeem for your free drinks. This is also the way the current birthday beverage benefit is fulfilled.
Why is the program changing?
Starbucks Card Rewards and Starbucks Gold were both very popular with customers and exceeded our expectations. However, we are always looking for ways to improve our programs. With My Starbucks Rewards we have incorporated many of the specific suggestions we received from customers and our Partners. The new program will:
- Be free at all levels – no membership fee, enabling more customers to participate
- Be one simple program that is easy to understand and use
- Provide tiered rewards – i.e. once you achieve Gold Level, you will still continue to enjoy the benefits offered at the Welcome and Green Levels
- Recognize and reward our best customers based on frequent, personalized rewards including free drinks
Is there a fee to join the new program?
No. There is no membership fee at any level of the new program. All you have to do is register your loaded Starbucks Card and you will be entered into the program and qualify to receive a free drink on your birthday.
My Gold Level Rewards Card
So, there you have it. Let’s discuss these a bit. I already covered the “stars” but it seems that every single transaction in the store counts but I’m pretty sure, as before, it doesn’t count on coffee roasters, grinders and other “appliances.” The main benefit is that you get free drinks simply by registering your card, hitting 30 transactions and then every 15 transactions, you’ll get a free drink! How do you get this free drink? Well, you will be mailed a coupon which will cost Starbucks money to mail it and waste thousands of trees just so you have this physical coupon that you can use in the store and can be immediately tossed in the trash by a barista.
Their reason for changing the program is complete bullshit. What Starbucks is effectively doing is canceling the $25 a year program and instead asking that you pay for 15 items (transactions) and they’ll mail you a coupon for a free beverage and they’re hoping US Mail will lose it or you’ll lose the coupon and thus they’ll never have to actually give you that free beverage.
My Gold Level Rewards Card
The only benefit I can see is that any Starbucks card on your account counts. So you and your wife use two separate cards that auto-reload every month and in one week, you can both use Starbucks once a day and accrue a free beverage each week. You’re still spending a shit load of money on Starbucks where the 10% discount would be worth much more.
A few loyal customers and employees gave their thoughts on my favorite blog, StarbucksGossip.com
Eric Writes:
SatX Writes:
Rodentius Writes:
And finally, someone writes:
So, overall it seems that the whole thing stinks. Everyone is unhappy across the board and really it’s those that are the most loyal customers. I’m also disappointing in this new and would rather pay and get 10% off every transaction in the store. My $4 latte saw .40 cents off at the register instead of getting that free drink every 15 transactions. It only encourages me to get 15 small coffees and then splurge for a $4.60 venti mocha frappuccino when I get that coupon in the mail. What do you think fo the new program?
If you have feedback about the new program, tell Starbucks directly! http://mystarbucksidea.force.com/