Back in February, Starbucks was under fire for changing up their loyalty program. They claimed the changes were made after listening to their customers, but the reaction many customers had was less than ideal.
This week Dunkin Donuts made a pitch to encourage new members of their loyalty program. Some speculate they are taking a hit at Starubucks with this new promotion.
In and of itself, the promotion isn’t much to think about. However, whether intention or not, the code to enter (STARS) is in line with Starbucks loyalty program, considering the tag line is “More stars. More things to love.”
In comparing the two programs, it looks like Dukin Donuts is offering a sweeter deal, likely in response to Starbucks newsworthy changes and the resulting backlash the company received. Another component to the more generous seeming program likely stems from the fact that Dunkin Donuts is typically less expensive than Starbucks, so they have to make an offering to allow customers to earn points and be worthwhile enough to join. Below are some of the differences between the two programs:
Dunkin: 5 points for every dollar spent
Starbucks: 2 points for every dollar spent
Dunkin: 200 points to a free coffee
Starbucks: 125 points to a free menu item
Dunkin: no member levels, continue earning as you buy
Starbucks: two member levels depending on purchase history/frequency
Coffee lovers seem to be loyal to their preferred brand, but it’ll be interesting to see if Starbucks customers migrate to Dunkin Donuts or stay loyal to Starbucks. If nothing else, this appears to be a dig at Starbucks for changing their loyalty program, which of course will gain additional visibility and online discussion. This is always good for a brand, so kudos to Dunkin for taking a swing!