Public Relations & Social Marketing Insight
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Public Relations & Social Marketing Insight
Social marketing, PR insight & thought leadership - from The PR Coach
Curated by Jeff Domansky
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Starbucks Roastery coming to Chicago's Magnificent Mile in 2019

Starbucks Roastery coming to Chicago's Magnificent Mile in 2019 | Public Relations & Social Marketing Insight | Scoop.it

Starbucks plans to open a four-level Roastery flagship on Michigan Avenue, its largest space yet for the high-end concept that the coffee giant is rolling out throughout the world.


At 43,000 square feet, Chicago's is the largest among six Roastery emporiums that Starbucks has announced. The size will eclipse a planned 30,000-square-foot space in China, which had been the largest one announced to date.


It will be the third Roastery in the United States, following one that opened in Starbucks' hometown of Seattle in December 2014 and another expected to open in New York in 2018. Roastery stores are set to open in Shanghai this year and in Milan and Tokyo in 2018, the company said....

Jeff Domansky's insight:

Four storey coffee Roastery dream for Starbucks lovers. Mmmmmm.

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The Problem With Starbucks' New Loyalty Program | PYMNTS.com

The Problem With Starbucks' New Loyalty Program | PYMNTS.com | Public Relations & Social Marketing Insight | Scoop.it

So why fix something that not only isn’t broken, but which has been the most significant driver of Starbucks’ top and bottom-line growth, according to their CEO (see one of numerous Howard Schultz quotes here)? Because some clever users figured out a way to optimize their spending to get over rewarded.

Starbucks does sell some items priced at around $1, so a user could have spent as little as $30 over 30 visits to achieve Gold status. After reaching that Gold status, that user would be entitled to any of the most expensive drinks on the menu, like a venti Frappuccino, for free — after only 12 more visits totaling a spend of only $12. So in response, the brilliant change Starbucks made to the loyalty program was to make it spend-based. And they also increased the stars-gathered requirement for a free item to about a bazillion stars.

This is broken on so many levels, but there are already enough rants out there about the new loyalty program. What really bugs me is how they missed a few simple points:...

Jeff Domansky's insight:

Good look at how Starbucks broke its leading loyalty program and angered tens of thousands of loyal customers.

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