Delta, Starbucks team up with loyalty program partnership for free coffee, miles

Delta, Starbucks team up with loyalty program partnership for free coffee, miles

Arm holding a Starbucks cup with a Delta airplane in backgroundArm holding a Starbucks cup with a Delta airplane in backgroundStarbucks and Delta are offering loyalty members a way to link their accounts. Photo courtesy of Starbucks and Delta Air LinesStarbucks and Delta Air Lines have joined forces to make their rewards programs more rewarding.Why it matters: Free coffee and miles. Delta SkyMiles and Starbucks Rewards members can get more value with added benefits by linking their loyalty accounts together, the companies said Wednesday.

  • Dangling more rewards can also help lure new loyalty members and build stronger allegiance for the brands.

The big picture: The PwC Customer Loyalty Survey 2022 found getting good value was the top reason people patronize a business for 53% of the 4,036 consumers surveyed. Thirty percent also said they liked the benefits, rewards and privileges of “a preferred company’s loyalty program.”Meanwhile, companies have started working together to make their programs more attractive in the last year.

  • Sephora purchases at Kohl’s earn members reward points at both retailers, similar to a Target-Ulta partnership for beauty purchases.
  • Dick’s Sporting Goods and Nike also have teamed up with their loyalty programs for Nike purchases.
  • Delta also offers members the ability to earn miles outside of flights with American Express, Lyft, Airbnb and Ticketmaster.

Starbucks Rewards and Delta SkyMiles benefitsWhat’s happening: U.S. customers who are enrolled in both Delta SkyMiles and Starbucks Rewards loyalty programs can link their accounts starting Oct. 12 by visiting deltastarbucks.com or starbucksdelta.com.

  • After the accounts are linked, members earn one mile per $1 spent on eligible purchases at Starbucks.
  • On days enrolled members have a scheduled Delta flight they will earn double Starbucks stars on eligible purchases at participating stores.
  • The benefits are open to new and existing members of both programs.

Between the lines: Members who link their accounts by Dec. 31, 2022 will earn 500 miles and 150 Stars after a qualifying purchase.Flashback: During its investor day event in September, Starbucks announced Reward Together, a new program allowing its rewards members to link their accounts with other brands’ loyalty programs to earn more points and get new benefits.What’s next: Delta is the program’s first U.S. partner but more loyalty partnerships are expected.

  • Starbucks is also launching the web3-enabled Starbucks Odyssey later this year but rewards members and employees can join a waitlist for a limited time.

Delta SkyMiles changesDelta announced other changes to SkyMiles last week and for the first time since 2015 said it is increasing select status-earn qualifications for 2024 Medallion status beginning Jan. 1, 2023.

  • Gold Medallion status increases from $6,000 to $8,000.
  • Platinum from $9,000 to $12,000 and Diamond from $15,000 to $20,000.

What they’re saying: “Diamond Medallion and Platinum Medallion Members who qualify for 2024 Medallion Status will be able to select from an expanded slate of premium Choice Benefits beginning February 1, 2023.”

  • Diamond and Platinum SkyMiles Members will be able to select 4,000 Starbucks Stars as one of their annual Choice Benefits in 2024, Delta and Starbucks said Wednesday.

Dunkin’ Rewards launches nationwideSeparately, Dunkin’ launched its new loyalty program Dunkin’ Rewards nationwide replacing its longtime program DD Perks.Details: With the new program, members earn 10 points for every $1 spent compared to 5 points with DD Perks.

  • Through Oct. 31, members can earn freebies with select purchases, the company announced.

Yes, but: Members will need to collect more points to redeem a free drink reward, which will range from 400 points for tea to 900 points for frozen drinks or signature lattes up from 200 points with DD Perks.More from Axios: .

Premium lifestyle app Times Prime celebrates its birthday and there is a return gift for everyone

Premium lifestyle app Times Prime celebrates its birthday and there is a return gift for everyone

New Delhi [India], September 16 (ANI/NewsVoir): As Times Prime, India’s only premium lifestyle memberships app by Times Internet celebrates its anniversary this month, it is offering all members an assured gift from top brands like MyGlamm, Chaayos, Punjab Grill, Zoff and PVR.All members of the Times Prime App can pick from a wide range of assured gifts like complimentary desserts at Chaayos and Punjab Grill, lipsticks from MyGlamm, and gifts from Zoff between Sep 15-30. Commenting on the benefits on its anniversary, Harshita Singh, Business Head of Times Prime, said, “Times Prime always strives to provide a superlative lifestyle experience for its members, and today as we celebrate our anniversary, we are delighted to share with them a host of exciting offers that can be availed on the Times Prime app till 30th of September. We are not stopping here, we have several leading entertainment, restaurant, and lifestyle brands in the pipeline that will soon be available on the Times Prime app and are going to further elevate the membership experience. So I invite everyone to become a part of these celebrations and explore new ways of enjoying Times Prime Benefits.”Raghav Verma – Co-Founder, Chaayos congratulated Times prime and said, “We are excited to be a part of the Times Prime Anniversary celebrations and congratulate the brand on its journey which Chaayos has been an integral part of. To celebrate the occasion, we are also offering a complimentary dessert to all Times Prime members at Chaayos and look forward to offering more such unmatched benefits to Times Prime members and Chaayos patrons.”Sukhleen Aneja, CEO, Good Brands Co, The Good Glamm Group said “Congratulations Times Prime on another year of success. It’s been an absolute pleasure working with the team. We are glad to be a part of Times Prime’s growth journey and to be able to provide specially curated benefits to its members on MyGlamm products. In celebration of their anniversary, we at MyGlamm have curated a special gift for all Times Prime members and look forward to many such milestones together.”As a part of their birthday month celebrations, Times prime will also be launching a new category with special benefits at some of the top restaurants across India. This will be in addition to a host of benefits across various categories like OTT brands, Coffee houses, kids’ brand benefits, food joints, news subscriptions, fashion & amp; lifestyle, travel, and other essentials as well as curated Members only events that are already available via the Times Prime App.Some of the brands under this massive umbrella of lifestyle elevation include Myntra Kids, Starbucks, Disney+ Hotstar, SonyLIV, Discovery+, ET Money Genius, Google One, Cultfit, Uber, Urban Company and many more.This story has been provided by NewsVoir. ANI will not be responsible in any way for the content in this article. (ANI/NewsVoir)DISCLAIMER(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

 

Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor

.

At Starbucks, Third Place Is No Longer Gold

At Starbucks, Third Place Is No Longer Gold

“New Starbucks Opens In Restroom Of Existing Starbucks” was a brilliant satirical headline back in 1998 when the coffee chain already seemed ubiquitous. As of a month ago, the day that Howard Schultz returned for his third stint as chief executive officer, it had nearly 10 times as many shops in North America.

When Mr. Schultz revealed that store count along with the chain’s unspectacular fiscal-second-quarter results, the chain’s shares were down by more than 40% from their all-time high last summer. Cost and wage pressures along with a bitterly contested unionization drive at home, and a recent sales collapse in China, the chain’s second-largest market, all weighed on sentiment. But this past Wednesday, the first trading session following the release, the shares surged by nearly 10% in their best day since a sharp rebound in March 2020 following the Covid-19 market panic. That came despite the fact that the company suspended financial guidance for this year.

The jump was a vote of confidence in Mr. Schultz’s plans. His strategic shift also has plenty of pitfalls, though. One bold move was to halt the company’s multibillion-dollar share buyback program at a time when the stock was in the doldrums. Since recently departed Chief Executive Kevin Johnson took over in 2017, the chain has repurchased about a quarter of its shares outstanding. That move was responsible for most of its earnings-per-share growth over that time, including projections for 2022. Mr. Schultz said on the company’s call that, while buybacks deliver a good return, the company could do better reinvesting the cash.

He spelled out some sensible-sounding efficiency investments that also risk damaging the chain’s brand cachet. They include installing drive-throughs in 90% of new locations and machinery that will allow baristas to handle increasingly complex customer orders more quickly. Starbucks is less and less the “third place” between the office and home for customers to socialize, relax or mooch off free Wi-Fi while nursing a Caramel Macchiato.

If customers are just picking up a paper cup of foamy brown water possibly made by a machine, why pay what analyst Lauren Silberman of Credit Suisse says is a 43.5% premium on average compared with similar beverages at quick-service restaurant peers like McDonald’s? The environment at a Starbucks is more inviting and upscale, but only 30% of customers now consume their purchases on premises. In a sign of its fading brand value and ubiquity, a similar beverage at Starbucks is about 11%-12% cheaper than at other specialty coffee shops.

What isn’t cheaper is running a Starbucks these days. In the most recent quarter the chain said that product and distribution costs rose by 23.8% and store operating expenses by 17.4% year-over-year, even as net revenues rose by just 14.5%. There are more price increases on tap. In the U.S., more than half of Starbucks’ sales gain was a function of higher ticket sizes—largely a result of price increases—as opposed to more foot traffic.

If costs are the problem, drive-throughs are almost certainly cheaper to operate, though Starbucks didn’t respond to questions as to how much cheaper. Investors should consider what Starbucks management reportedly feared when it first invested in drive-throughs—that it was a bad look for the chain. After all, part of its appeal is being a more refined place with prices to match, compared with, say, Dunkin’.

It will be a delicate balance—especially if high inflation pinches consumer pocketbooks to the point that people think twice about affordable luxuries like expensive takeout coffee. Automation and more-efficient store formats could help keep Starbucks cheap enough to retain its loyal customers. Or they could cheapen the experience, sending some to competitors.

This story has been published from a wire agency feed without modifications to the text

Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

.