That’s the news part of the event. We know that Starbucks sells comfort of third place to its customers instead of a tangible product, the coffee. From this point of view, there is a conflict between their value proposition and promotion. Since this loyalty card gives 10% bonus points from your purchases, it is something tangible that is not related with comfort of third place.

On the other hand, Turkish customers like selling promotions like discounts and free products. Those bonus points can create a new customer segment which consist of promotion seekers. In addition to tangible benefits of the card, it has a good design which represent image of Ankara. We hope that Starbucks launch it in Istanbul also.

As a customer, this card didn’t change my purchases decisions. Since Starbucks is placed its branch in our faculty’s basement floor, I am still making purchases frequently. Being in a university campus is more effective than loyalty card for me, because I am addicted to their products’ tastes and comfort of the place.

If we look at company side, they have really huge benefit from those loyalty card in terms of market research. You can have this card without any registration forms or other application. They gave it in cash out area. However, you should sign up and register online to use card for discount and free purchases. When you sign up to their site, they would be able to easily track your purchases according to hours, days, place or your demographic features. It would be precious database for company.

Briefly, I liked the new promotion campaing of company with loyalty card, I still have questions since their main benefit is being third place. They did it silently, they created good WOMM between friends and without a doubt they are collecting very precious data about their loyal customers and their purchasing behaviors!

P.S: I took my free coffee last week =))