That's according to Starbucks Gossip message posts. "Mikey" writes: "Included, as a Gold Card benefit, it seems Starbucks can track your purchases, and will provide their best customers with freebies, such as after buying 10 drinks, get one free, plus lots of free perks, and also giving a free drink of your choice on your birthday. Each specially selected participant will get a test Starbucks Gold card for this trial period which begins during this fall. If successful, Starbucks will roll out this pilot project nationally." Anyone have more details?
July 10, 2008
This pilot test is in Denver, CO and Vancouver, BC.
Posted by: V | July 10, 2008 at 12:05 PM
i think someone said it in that first thread. This could be a great program, but "hand picked" would be a bad way to do it. We don't need bigger egos at Starbucks, on either side of the counter. If implemented right, i think this could work miracles.
Posted by: Nerfebarista | July 10, 2008 at 12:24 PM
i got the invitation a couple days in the email, and signed up immediately! it wasn't too specific about the perks of the card, except for a "free drink on your birthday."
They said the card will arrive in about two weeks... i can't wait!
Posted by: aceofspades | July 10, 2008 at 12:30 PM
i hate this idea... it goes against so many of the things i remember from my training -- why we don't offer buy 10 get 1 free, etc.
oh well, what can you do...
Posted by: flbarista | July 10, 2008 at 12:34 PM
I'd love to check out the gold card. But I'm not in Denver or Vancouver.
Posted by: lattegal | July 10, 2008 at 12:35 PM
Times are changing, and we have to change with them. Plus, it's about the customer who pays our salary and we need to work at giving them what they want and still make money doing it. I think the gold card could be a great asset to our loyal customers.
Posted by: lattegal | July 10, 2008 at 12:38 PM
Yes, Vancouver BC and Denver CO are the two test cities.
Specially selected participants Gold Card holders will also have a special "members only" Starbucks website where they can log-in and express their opinions and comments.
Posted by: Mikey | July 10, 2008 at 12:56 PM
specially selected and hand picked, really mean, name randomly picked from our registered card holders database. Yay! I hope the test goes well so everyone can get these bennies!
Posted by: Nerfebarista | July 10, 2008 at 01:04 PM
Btw, I'm only bitter about this because I have been told, in the past, that I was not allowed to do a Customer of the Week program, because It belittles everyone else that comes in and does not get that recognition. This "hand picked" process goes in the face of everything we stand for, from a customer service perspective. If/when it goes live, will everyone have the chance to sign up, or will this be the "elite club" some of the jerks on this site have been begging for?
Posted by: Nerfebarista | July 10, 2008 at 01:07 PM
This just plays into the 'hoity-toity' marketing the other guys are using against you.
Posted by: truth | July 10, 2008 at 01:14 PM
They seem to be dribbling news out to counter the bad press, which is actually not a bad move from a PR standpoint.
The stock has blown through the $15 support and the next level of support is $12.50. And it seems to be heading there with some momentum.
People are losing a lot of money right now.
Posted by: truth | July 10, 2008 at 01:22 PM
As a customer I love the idea of the gold card.
But I can see how things as the 10 cup get one free can lower Starbucks quality.
However, I do think that the free beverage on your birthday is a great idea.
-----
Off topic: can you guys recommend me a good Starbucks message board/forum? I have quetions but it would be innapropriate to ask it here because this is not a message board. Thanks.
Posted by: STRBKSCSTMR | July 10, 2008 at 01:25 PM
i still think yer full of it truth, don't bother replying, thanks =)
Posted by: Nerfebarista | July 10, 2008 at 01:31 PM
I have a half dozen "preferred customer" cards (Best Buy, Hancock Fabrics, Inkstop, Borders, etc...). And they were free. They don't do anything to boost my ego, and didn't turn me into a self-entitled monster. They just track my purchases and reward me with special store discounts when I spend a certain amount of money. And when I haven't been to the store in a while some of them send me a free coupon to woo me back in. (By the way, it works.) So yeah, I'm even rewarded for being a "bad" customer, but the result is that I ultimately spend more money, stay more focused on their products, which is really all they want in the end.
All my "preferred customer" cards are available to ALL customers, not just the specially selected ones. In fact, they'd like every single person who walks through the door to be a "preferred customer" so it's not really a big deal to my ego. Sbux PR should take a hint.
And I'd respond to a sbux "gold card" much better than I would to the other card that I have to pay for, because I'm staunchly opposed to paying ahead for anything, especially food and beverages. (But hey, I'd respond even better if sbux served Sumatra or Verona in the afternoons... [hint hint])
Posted by: StLouieDrip | July 10, 2008 at 02:03 PM
The numbers don't lie.
2 weeks ago the stock was at $18.47. Today it's at $14.43. That's a 22% decline. AFTER a huge layoff announcement.
Stock prices usually don't react that way. Usually layoffs = stock price jump.
There has to be bigger news still to come.
Posted by: truth | July 10, 2008 at 02:05 PM
At strbkscts, try www.greenapronbook.com. sorry posting from phone so a little choppy.
Posted by: Melody | July 10, 2008 at 02:35 PM
Truth -- This thread isn't about stock price.
Posted by: STARBUCKS GOSSIP WEBMASTER | July 10, 2008 at 02:39 PM
Its much like the Amex black card, its about your rank $ wise, its something to strive for. and something you need to maintain. At least that's what was told to me by the manager.
Posted by: mi | July 10, 2008 at 03:02 PM
Jim- This thread is about rumors of a new program, which I posited was leaked on purpose due to the stock price decline and bad media attention.
These things don't just happen.
Posted by: truth | July 10, 2008 at 03:06 PM
Everything always comes back to stock price, it the only tangible ownership we can have of Starbucks. Sure a couple hundred shares of voting power doesn't sway the the board of directors, but it doesn't mean that individuals are not emotionally connected to Starbucks. The stock is only a reflection of traders in the market thinking that Starbucks future does not hold water. A company's stock does not reflect the company's future, but only what people think its future could be.
When the layoff annoucement hit, the stock rose 7% in after hours. The market doesn't care about promotions or coupons, they care about profits and shareholder value.
Don't worry I'm coming back to topic. A rewards program is a strange way to get business. Remember how Starbucks started doing breakfast sandwiches and the customers loved it, but it destroyed the coffee house image? The rewards program is going to further ruin Starbucks image.
Posted by: James | July 10, 2008 at 03:14 PM
If this thing is an AmEx gold card, it just blows my mind. Who in the heck actually uses AmEx?
You can just imagine how this thing was dreamed up at a conference table in Mermaidville.
Businesses who are 'transforming' and 'returning to their roots' don't launch new non-core programs, do they?
I guess it just reinforces my theory that they are creating a firewall and gonna go really small, really niche, basically a clover and specialty drink business, trying to make it a one-per city destination. As opposed to their competition who is everywhere and growing.
I don't see how it works. Apparently, the market agrees.
Posted by: truth | July 10, 2008 at 03:33 PM
I think the rollout of the gold card on a trial basis is great idea and I just don't see a downside to it. It's free, rewards our faithful customers for repeated visits, which should bring them in to our cafes more often. More visits, results in more sales.
Posted by: tallgrandeventi | July 10, 2008 at 03:46 PM
Truth, I'm not sure what your issue is other than you are one very unhappy man. Do you spend your days peeing in everyone's pool or just Starbucks?
The gold card is not an Amex card, it's a version of the Starbucks Rewards Card.
One per city destination, are you kidding me? A company the size of Starbucks, closes a few stores and all of a sudden you break into your chicken little impersonation. I suppose you haven't noticed other retailers scaling back? Have you bought gas lately? As one who insists they are in touch, you sound pretty out of touch to me. Starbucks is around for the long run and not as a novelity. Jeez.
Posted by: tallgrandeventi | July 10, 2008 at 03:56 PM
This concept comes straight from our customers, it being the #1 most suggested idea on mystarbucksidea.com. I'm pretty pleased at how we're responding to our customers, so I'm surprised that Truth has nothing good to say about this. It kinda proves my point that he will always have a negative bias, about everything we do, even if it will increase profitibility for the company.
Stlouiedrip makes the point exactly. If it gets you back into the store, whereas you otherwise have not visited recently, then it will positively impact our business. Plus, it can be used for real time trend analysis, which we are poorly tracking currently. This is a win-win.
Posted by: P.R.I.D.E. | July 10, 2008 at 04:07 PM
Just got the word, my store is safe!
Posted by: Darleen | July 10, 2008 at 04:33 PM
Congratulations Darleen! If your store weren't safe, I'd be severely upset.
On topic, I think we're just trying out a lot of different ideas... nothing wrong with that. Everyone goes through a trial-and-error stage, right?
I'm satisfied with my job. Things might be a little rough within my store and within the company right now, but if I'm still making people happy every single day, I'm content.
Enthusiastically satisfying all the time,
seventysix [76]
Posted by: seventysix [76] | July 10, 2008 at 04:49 PM
but if I'm still making people happy every single day, I'm content.
Enthusiastically satisfying all the time,
seventysix [76]
This is EXACTLY why I love 76, always the positive bean!
Posted by: Darleen | July 10, 2008 at 05:12 PM
Try not to focus on the buy 10 get one free...that's just part of it, a possible part of it. Not everyone will get rewards like that, it's all based on your buying habits. Two people can have gold cards and be getting totally different rewards.
It's only 'invite only' during the test phase, after that, if it's successful, it might be open to all SBUX Card users.
Posted by: Christin | July 10, 2008 at 05:33 PM
Well, all I can think is that it's about time!
Posted by: Anthony | July 10, 2008 at 05:36 PM
hmmm- I don't think I want my SBUX purchases tracked for fear of actually knowing what I spend there...it would never go in again
Posted by: parker | July 10, 2008 at 05:45 PM
Well, I know that the news article doesn't give much information regarding this "new" card, but I wonder if that means starbucks customers would have to register a NEW card vs. the Starbucks gift/debit card? And what does "best customers" mean? Will Starbucks now give preferential treatment to only certain customers? Sounds more like discrimination to me, and it might alienate/turn off some people. It's also ironic if this promotion rolls out nationally like this, especially since Starbucks prides itself on having a diverse customer base.
Guess we'll see what happens...
Posted by: formershift | July 10, 2008 at 05:51 PM
I have a feeling that there was a selection of customers for the pilot for the sake of controlling the test, however if this were rolled nationally I'm sure it would be available to all customers.
Posted by: P.R.I.D.E. | July 10, 2008 at 06:02 PM
Congrats Darleen! :-)
Posted by: StLouieDrip | July 10, 2008 at 06:16 PM
Man, how would they track this? Total the purchase on all your registered cards? I guess I should have been purchasing my beans at Sbux instead of Caffe Vita in Seattle via mail. Oh well.
Posted by: Glen Feliz Regular | July 10, 2008 at 06:41 PM
I want to address Parker's concern about tracking purchases:
It seems like everywhere you go, people want to track your purchases. That must be part of the reason for all the million little grocery store cards. ??
I would assume that someone at Starbucks has the ability to track the purchasing history of a particular Starbucks card. Starbucks could, hypothetically, figure out who their biggest spenders are - top 10% or top 20%.
I want Starbucks to go back to the feeling of "exclusivity" that it had before the rapid expansion of very late 90s early 2000s. But unless this were offered to all, it would be very alienating to customers who think that they spend "enough" whatever that might be, to get the same rewards as the next guy, but for some reason, they're not getting and "Gold" benefits.
Posted by: Melody | July 10, 2008 at 06:56 PM
This is the text of the email I got.
Dear XXX,
I'd like to personally invite you into Starbucks Gold. It's a new rewards pilot program, and our way of saying thank you to our very best customers.
As a member, you'll receive a personalized Starbucks Gold Card. In addition to all the perks that come as a part of our Starbucks Card Rewards program, the Gold Card entitles you to exclusive coffeehouse rewards, a members-only website and other indulgences, like a treat on your birthday. Gold is a status you rightly deserve and will thoroughly enjoy.
So please accept our invitation and sign up for Starbucks Gold before July 21, 2008. Then let the thanks begin.
Sincerely,
Brad Stevens
vice president, Customer Relationship Management
This is currently a pilot program for selected Denver, Colorado residents only. This invitation is non-transferable and space is limited and available on a first come basis.
Posted by: Chiente | July 10, 2008 at 07:08 PM
Congrats Darleen! :-)
Thank you so much, I think I can let my breath out now. Very tense few days for many of us. I'm still praying for the ones who still do not know their stores fate. It is hard and I wish you all the best of luck.
Posted by: Darleen | July 10, 2008 at 07:35 PM
TRUTH :
Do you know what an amex black card is? Its the best of the best when it comes to cards, its made out of metal and has NO limit. If you want an apache helicopter, and a wig made from Donald Trump's hair, sewn by Bill Gates in a sweatshop in east Egypt, they will make that happen for you. There was a customer at my father's dealership that put $650,000 worth of cars on it, and all they had to do was sign on the dotted line. I also had a woman that had one that always came in bought her drinks, and a new tumbler for them to go in, three or four times a week.
We loved her.
Posted by: Mi | July 10, 2008 at 08:05 PM
For the Gold Card, when a Barista swipes the card into the cash register, your name, your date of birth (without the year) will appear on the till's monitor. Also, your 'regular' drink will also be shown to the barista.
Posted by: Mikey | July 10, 2008 at 08:45 PM
Further to the card, when the Barista swipes the card in the cash register, the registered Gold Cardholder's name and birth day (without the birth year) will appear on the cash register monitor. As well, their favorite drink will also be displayed.
Posted by: Mikey | July 10, 2008 at 08:48 PM
Just confirmed in Condé Nast's "Portfolio" magazine's recent exposé of Howard Schultz. The big wigs are testing out a new "half-drink, half-dessert" concoction that they portend will have wild frappuccino level success and popularity. Anyone have any intel? The article claims California stores will test this before going national.
Anonymous
Posted by: anonymous | July 10, 2008 at 09:28 PM
Anonymous, still sounds like they're talking about the Sorbetto beverage. We've had California partners saying that tney're getting the Sorbetto to launch when they launch the Vivanno, and only Calif is getting the Sorbetto right now.
The sorbetto was briefly in Washington state in just a couple of stores. I tried it and loved it.
Posted by: Melody | July 10, 2008 at 09:37 PM
TRUTH: Love it! Ha-Ha-Ha-Ha ('devil's laughing tone', with pitchfork in hand)
:) Keep it real!
Posted by: Limey | July 10, 2008 at 10:32 PM
CRYOGENICS & SBUX MARKETING DEPARTMENT
All the talk of getting back to the core as part of transformation seems to be just that. No doubt, the tally for in-house and outside agency time spent on developing a gold card is considerable. Unfortunately, shareholders pay for Marketing's amateurish and safe stab to right the ship.
Given such deep pockets, SBUX should consider offering cryogenics as a perk to Marketing head and staffers involved with the card. Let someone else take responsibility for tackling critical customer experience issues head on -- like product quality and store environment.
Posted by: viet coffee | July 10, 2008 at 11:21 PM
Yes, marketing to the "I put a half million worth of autos on my credit card" crowd is sure to be a winning strategy for any company.
This reeks of some jackass powerpoint pitch done by someone who developed an elite program for an airline two decades ago.
That's worked out for the airlines, hasn't it?
Posted by: truth | July 10, 2008 at 11:55 PM
Ha ha this is great. At a time where some of the major grocery chains are getting rid of these things because they simply don't work, Starbucks picks it up and yells success! So, what if I want to be a part of it if I was in Denver? Would I just be plain out of luck? This doesn't encourage new customers at any rate, which is why Starbucks is sinking fast.
The layoffs should have helped, but I have a feeling with Truth that there are more problems than there are at the surface. This "gold" card isn't going to help this company get back to the top.
Posted by: David | July 11, 2008 at 08:17 AM
I understood immediately that a Starbucks Gold Card is just a rewards card...not a credit card. Why is this so hard for people to grasp?
People are whining that Starbucks doesn't care about this or that, but they obviously care about their customers b/c it was the customers who wanted this card! I doubt very seriously that Starbucks thinks this card will 'save' them or raise the stocks alone...but it will increase customer satisfaction!
And it's a test...meaning not everyone has access to it now, but they probably will eventually...if it tests positively. If it doesn't, oh well. Even the rewards card isn't rewarding for everyone...like people who only drink frappuccinos...no benefits there for syrups...or people who don't buy pounds of coffee or use the cafe for Wi-Fi. You can't please everyone.
Isn't running a business all about figuring out the best ways to market your product to the majority of people and bring in more customers? Some things work, some don't. At least now we know Starbucks is listening to their customers' suggestions...
Posted by: Redd | July 11, 2008 at 09:02 AM
We've never had a official program or card thats given every 10th drink to a customer on the house but I know a lot of the stores I've worked for take the opportunity to surprise and delight their regulars by comping their drink every so often (right now recovery). The surprise and delight technique is much more personal.. it says "hey you, I see you every day, let ME do this for you today."
So Im cool with this card and all its benefits, I think they align with the human connection piece our company possesses. However Im wondering- If our stores were truly staffed by people who stood by and honored our mission statement and then took those opportunities to develop enthusiastically satisfied customers would all these new reward programs be really necessary!?
The message I am going to pass onto my partners is this: We dont need a special card and program to recognize our regular customers and reward them for being loyal. You have the power to surprise and delight. Use your time and energy to develop those enthusiastically satisfied customers.
Lets not just sit around waiting for a rewards program/card for a way to say Thank You.
Posted by: meme | July 11, 2008 at 09:55 AM
All these new "programs" to try and fix the company...
Why don't the powers that be figure out that the best way to fix things is to go back to what was successful before?
Like, Starbucks is about COFFEE, folks! Get rid of that wimpy Pike's Place, or offer it if you must BUT still have another choice ALL DAY!
This is how daily customers were able to taste different blends and find their favorites (hint: Yukon is my fave) and then buy pounds of coffee to make at home, etc. Starbucks made its name on the taste and the high caffeine kick. Don't change what worked about the company!
I wonder how the sales of packaged coffee is doing these days in the stores. If people don't get to sample it, how will they know whether they love it enough to buy a pound?
I, for one, sure miss walking in and checking the board for today's flavors...perhaps a new one to try, or check out this year's Xmas blend, etc!
I actually walked out of a Starbucks yesterday WITHOUT BUYING A CUP OF COFFEE at Astor Place because all they offered was Pike's Place and I just can't stand that wanna-be Dunkin' Donuts flavor.
I hope this fall they're not gonna dump the Xmas blend for Pike's Place.
Go back to the boards and FIND OUT WHAT WORKED for Starbucks and do that...again.
Don't try to be Dunkin' Donuts or McDonalds or something else that you're not.
It's the coffee, stupid!!!
Posted by: iloveyukon | July 11, 2008 at 10:10 AM
I agree with Yukon on the focus. I don't see how a status card is helpful. It's like they are saying if you are a top 10% customer, you are special. Everyone else pound sand.
There was a time not too long ago when a 4% price decline merited its own thread. Now, the stock is declining 2-3% EVERY DAY and somehow I bring it up and I'm accused to trolling off topic.
Also, Howard was in the news all week with the NBA threatening to face off against him in his lawsuit with a bunch of oilmen.
What about the numerous reports here that there are another bunch of layoffs coming in the next few weeks?
Posted by: truth | July 11, 2008 at 10:38 AM