Why Starbucks sends free-drink postcards through the old-fashioned postal service

Why can't the coffee chain simply put the free drink on the Starbucks card we carry around in our wallets? That's what one "huge Starbucks fan" asks. He posted on the New York Times website:

“It confounds me why Starbucks couldn’t just ‘credit’ the Starbucks card — which it tracks online anyway — with a free drink credit, or with money, or with anything electronic. You would think they are counting on some percentage of the rewards cards to be lost in the mail, lost in the house, set aside because too bulky to carry, and finally to expire.”

A Starbucks spokeswoman says the data integration required to redeem "digitally delivered" rewards isn’t available at all Starbucks locations today. || Read "Starbucks uses snail-mail rewards, too"

Comments

[spencer]

Geesh. People complain about getting a free drink. Some people are just a little too self centered when they want a free product served to them in a manner that they want. It's a free drink folks. Yeah, some get stolen by the mailman but not often enough to be a problem.

[Doppio con karma]

Can you imagine the rage that might ensue if a customer "wasted" a freebie on their typical drink thanks to a pre-loaded card?

[Jim Romenesko]

Starbucks free-drink postcards .... Netflix DVDs... your mail carrier has so many things to choose from to steal!

[Dave]

@Jim Romenesko
Don't forget about the tax documents, endorsed checks, and that nice new package from Apple, Inc... ;)

[Melody]

@Jim - C'mon! You're a journalist! If you like http://www.starbucksmelody.com so much that you're going to 'lift' images from it, then you should properly fully credit the site in the main text of content, including a clickable link.

Anyone can click on the link in my name and see the old article I wrote where you got your image. Glad to see that you too like browsing my content!

*grrrr*

[(former)Dmanagerla]

Obviously, they hope it doesn't get redeemed. Most people lose their coupons...

[Judy]

I'm with Dmanagerla on this one. Wonder how long it took the actuaries to figure out that enough people wouldn't redeem the coupons to justify the printing and postage expense?

[Jim Romenesko]

Melody: Don't flatter yourself. I didn't get the image from your site -- haven't visited it in months; sorry -- I got it from Google Images and had no idea where it came from. Oh, and the last time I stopped by StarbucksMelody.com, I noticed you had just launched a new Weekend Open Thread, that had a conversation-starter and invited people "to discuss anything else Starbucks-related."

Gee, I wonder where you got *that* idea?

[Melody]

Jim - Don't play naive.

[Coffee Soldier]

Well said Doppio Con Karma....god forbid the customers who 15 tall lattes accidentally used their 16th free beverage and got another tall latte rather then a Venti 9 shot extra coffee carmel drizzle coated around the cup carmel frappuccino if the register automatically did it for them! Then there would be a real mass revolt!

I do wish customers got credit for 3 drinks at a time though if they purchased 3 drinks in a transactions all these customers holding up the lines to have their multi beverage order run up individually is very annoying!

[Jim Romenesko]

Melody - Naive? Get a clue.

[Valkyrie]

Saying that all you did was Google an image and that therefore it must be okay to use it / you are not accountable for its unfair use is quite possibly the dumbest thing I've heard in a while.

[Jim Romenesko]

Valkyrie -- That image of four Starbucks postcards was truly a work of art and should not have been reposted. Shame on me!

[Saffoula]

I like the postcards. I give them away when I don't use them. I look forward to getting something that is not a bill in the mail. Call me old school.

[brian]

it is stupid that you have to do multiple receipts to get your gold credits, obviously both that and the mailed free coupon are so that people will get less points and some % will never use the free coupons.

it would be most interesting to see what people actually use their free coupons for, if they normally get a medium coffee do they use the free coupon for just the same thing, or if theyd get a more expensive drink. i would be a higher % than ud think just gets their normal drink, even though that would be fairly stupid.

[Red cup]

Jim I back you 100%, melody is acting like she created the image. Why are you here melody if your site is so great? Oh yeah your trying to get visitors to your lonely site.

[frapatte]

Looking at the original image, it actually does look like Melody created the image. Please, continue about how Melody is the one to be knocked here, red cup.

[javagirl666]

Who cares?

[Red cup]

melody its always trolling on here begging for visitors to her site, while jim allows it, then she has the audicity to call him out in a thread instead og emailing him about an image that I guess has been removed, seems ungrateful and narscistic to me.

[Red cup]

Is* of*

[spencer]

Jim and Melody: Play nice. Both are sites that I usually enjoy.
Is it just the name or is Red Cup the former Green Cup.

[Justin]

I am not ashamed to say whenever I use a coupon I get a fancier drink instead of my normal iced coffee. No sin there. It's also built in control from drinking too many of the fancy sugary drinks.

I would never dream to ask the barista to ring up each item differently - that WOULD be a sin.

[Red cup]

Nope I've had my heated disagreements with green cup therefore I must give him credit for the name how ironic.

[Jeff]

Like Saffoula, I enjoy seeing a black and gold postcard in my mailbox when I get home from work.

But if we can now send "e-certificates" to friends and family and they can print them out, why can't Starbucks just send us an e-certificate for a free drink?

[java nut]

As anyone who does mass e-mailings of any kind (as in legitimate, opt-in lists) the percentage of "no longer active" e-mails, even on a monthly basis, is quite large. Too many people don't think to update their e-mail addresses and so would not get their coupons. I'm another vote for snail mail, btw.

[promotedtocustomer]

Just goes to show people NEED something to complain about. "So what if it's free? I have to carry this bulky piece of cardstock to Starbucks. I could get a paper cut!" I can't believe it's even discussion. Total DUH.

[waltie]

My electric bill, gas bill, internet bill, etc, give me the option to go paperless, getting all of my notices and bills online. It would be nice if Starbucks gave people this option too. It could easily work as a part of the iPhone app. When you earn that free drink (either after fifteen purchases, on your birthday, whatever), it could appear as a separate page you can open and scan whenever you choose, until it goes away after being used or expires.

[tivoboy]

I would wager that similar to other physical cards, 30-50% of the cards are NEVER redeemed. There should be some local laws, like in CA to protect the owner but it probably isn't re-inforced

[ANon]

Their systems are not currently capable to handle that kind of transaction. Thats why, Im sure they much rather save on the postage costs

[buxy]

More likely it's because the card system and registers aren't setup to prompt baristas with a 'does customer want to redeem their free drink', and they want the customer to have intention behind their free drink... most people are going to want something fancier than their tall drip, so the card gives customers choice on when and what to use it in...or to gift it to a friend or whatever they want to do with their free drink card.
Emails wouldn't work, they can be forwarded or reprinted over and over again.
I'm sure starbucks doesn't care how many are redeemed as the drinks being redeemed probably cost as much as the postage for these coupons, and probably encourage other customers to buy more. (2 more visits and I get my gre drink I should stop in, oh my drink is free why don't I buy this $5 fruit plate)
all customer rewards programs are all about creating value for the customers as customers provide more and more business anywhere you go

[spencer]

Some people get the fancier, larger drink but at least half in my area do not. If they always get a tall coffee; they are still going to get a tall coffee.

[baristamclane]

I do like the fexibility of being able to redeem the coupon at my leasure, instead of on my 16th drink. Granted, I usually use them instead to bribe friends into doing favors (like pet sitting).

[frapatte]

You make a good point, buxy. Sbux is probably counting on people giving away at least some of their free drink coupons to friends or family, hence raising the potential for new customers.

[brian]

for the person that said they'd never 'dream' of having a worker ring up 2 or more different orders, obviously starbucks knows some people think its some sort of imposition to have a worker do 2 or more receipts and therefore wont ask, not to mention what percentage of people realize you have to do separate receipts to get multiple gold points. probably not a very high percentage, especially for the first probably month or more that u have the gold card, since u really wouldnt know unless u specifically checked the starbucks card website and ur order history to see that u werent getting as many pts as u thought u were. and i doubt if anywhere on the starbucks website they say about having to do 1 receipt per point other than in the fine print.

[Wannabe]

How about Starbucks "commitment" to be green. Doing this electonically will reduce paper, alot of it...and thick fancy paper to boot!

[green_cup]

Are folks really complaining about getting something for free?

Really?

PS: Hello Redcup!

[Chloe]

i prefer it this way. or a receipt that prints. i'm a former partner - i typically get iced coffee or drip coffee now because of my budget, but when i get a freebie card it's my chance to indulge when i'm having a particularly bad or stressful day. i can hang onto it until JUST when i need it. no complaints here!

[Jazzhands]

Even if the cards ARE expired, do any baristas actually check the expiration date? The code hasn't changed since the cards started coming. I know I don't check the date on the card to make sure it's not expired. If the code changed, and the old one no longer worked, that'd make it a bigger issue.
Also, very few people in my store want things rung up separately, even when we've offered it. And we have, especially when they're purchasing a bunch of drinks at once. I think they figure the time they save by ringing all together is worth more to them than the possible faster free drink.
The only person who requests separate transactions comes in at night, and gets two drinks. And if there does happen to be a line, he'll wait until it dies down to get his drinks.

[Alexander]

Don't we mail the cards because it's a little more personal than an automatic transaction that would happen due to wires and NOT partners within the company?

Aren't we all about customer service? Going that extra step? Suprise and delight? Being legendary?

Oy vey.

[RememberTheOldDays?]

Does anyone check the expiration dates? You'd better damn well believe I do. I'll give you a week or so flex to "just say yes" but if you're bringing me in coupons from January believe me I'll say "sorry, this is expired".

Nothin' wrong with that, if they weren't supposed to expire they wouldn't have expiration dates.

I think the company doesn't do it electronically, as someone mentioned, in hopes of cutting down on the redemption rate. I'm sure they factor in how many more drinks would be redeemed if they didn't need to remember this post card that was sent via "snail mail".

On the other hand...maybe they're just trying to do their part to keep the USPS in business?

[Lee]

A lot of my customers are complaining that they aren't getting their free drink postcards. I think that Starbucks should just find a way to add it to your account that will automatically tell the baristas that you have a free drink award and also E mail the customer or send them a postcard letting them know they have earned a free drink. I heard that the cards are getting intercepted. I think if they have to send a postcard then have it so that it's only redeemable when they use the gold card associated with the free drink. But then again that could be a very expensive IT venture and maybe not worth the cost

[Hal Ross]

I appreciate the awards. That's another reason they get my business. As far as I'm concerned, they can notify me any way they want !

[nicole white]

As a customer I completely stopped using my gold card (or any sbux card) because i stopped getting my free drink postcards. It totally sucks! Out of 5 free drink postcards I only received 1. And I do think someone in my postal area stole it. I ok with getting the coupon in the mail... but can't they at least put them in unmarked envelopes?

[Wheatgirl]

I, too, am getting my cards stolen. They never make it to my house. Feel bad calling up Starbucks telling them I'm not getting my cards...wish they'd just put the money on my gold card. Now two of us are getting free drinks...the mailman and me.

[Stan]

@remembertheolddays

don't do that, I got a nice talking to from my manager, then the DM, and then the RM after a customer complained to seattle that i turned down an expired by two years coupon.
my argument was exactly the same, and i think that's the only thing that saved my job, "why put an expiration on it, if i have to take it anyway?"

[Regular customer]

It's hypocritical of SBUX to be constantly behind on sending the coupons, not sending any unless a customer calls, lying that they must have been "lost in the mail" or "stolen" when in fact they weren't sent at all (according to one svc. rep on the phone to me) then refuse to allow use because of an obscure expiration date.

Furthermore, only one barista ever mentioned to me, "this expired but this one time I'll let you..." (and this was one it took me almost a year to get!) all the others either never mentioned it or made clear they cared yes.

[tricked]

I enjoyed reading the comment that it probably takes people a month or so to recognize that buying two drinks at once is one transaction=1 star = 1/15 of a free drink, and that if you ask that the register person to ring up two separate purchases for two drinks you get 2 stars. I have *never* seen anyone in line in front of me do the multiple transaction thing with their gold card, and it just sloooowly became clear to me that I wasn't getting the free coupon every 15 drinks. Duh. Color me stupid. And yes, how could this not be obvious to SBUX that most people wouldn't grasp the fine print. Seems intentionally deceptive (one person's opinion).

[Amanda Plants]

If you think it's complaining for ask for the free drink to be added to our card you are not very bright. The fact is simple; we be we receive the free drink postcard!!! I'm sure the postal workers are enjoying free drinks. Why else would I never receive the free drink postcard? For 6 months I have bought 2 drinks a day; I have only received 2 cards. You do the math...