I’ve had the new Starbucks Gold card for a few weeks now and alot of people have been asking me what I think about it and how I got in. I figured a blog entry would be good to catch people up and since I have been in charge or a rewards program before, maybe I can add a few tips for Starbucks.

I was invited into the program early, before it was open to the public, and for free. Great! I love being an early adopter, I love Starbucks, and I’m not going to lie, I like being “that guy” who the baristas say “Ohh, this is a Gold Card.”

After using the card for a few weeks I wanted to give some early feedback, and maybe some information for anybody that is thinking about buying one when they become available November 4th. Starbucks, if you want to hire me for these insights, feel free. :)

Previously to being invited to join the Starbucks Gold Card program I had been a registered Starbucks Card holder since they started giving you free syrups and milks and had been using a Starbucks Card for much longer than that. In fact I have been using the Ichiro card that came out over three years ago until I got the new, slick looking, Gold Card. All that being said, yes, I go to Starbucks a good amount.

So what does the Starbucks Gold card get you? So far it has gotten me 10% off my drinks and food. They say there will be other benefits given online over time, but I haven’t seen anything in the past few weeks. You get 10% off of other products as well and a free drink on your birthday.

Over the last few weeks I have probably earned 2 free drinks (based on saving 10% a drink). To make things easy, let’s say I buy a grande Americano everyday (which I don’t, although I do buy Americanos not the expensive drinks). That would cost me apx. $890 over the year, and with the Starbucks Gold card I would save apx. $89, or roughly 36 free grande Americanos. That’s quite the savings if you ask me, and for a free card (or even a $25 card) it is well worth it. Factor in buying for other people, snacks, gifts, and you could be making back 10X your investment fairly quickly. Sounds great, it is…but is it could easily be better.

Here are the knocks I have with the card;

1. You don’t get refills, even though it is a registered card.
2. You don’t get free Soy or Syrups, even if you have registered the card.

I guess those are the only two knocks that I have on the Gold card, but trying to be an elite or somewhat exclusive program they should take care of these benefits that they already offer to other “registered” card holders.

What does this mean on your bottom line? If you buy Soy drinks of any size, get coffee refills, or buy tall or short drinks with syrups the registered card, as opposed to the Gold Card, is actually is a better deal.  For me, being an Americano drinker who likes refills it has actually led to me having to carry two Starbucks cards. To save money on the Americano I use the Gold Card, then when it’s time for my refill I use the registered card. You can call me cheap if you’d like, but if you know me you know it comes down to the principal of the program and the benefits.

Why doesn’t Starbucks just let the registered Gold Card members get free syrups, milk upgrades, and of course the refills?  Obviously the Gold Card members are loyal and with the special invites going out Starbucks wants these card carriers them feel valued.  Not taking care off these small details will hurt the overall experience for those who buy the Gold Card and make them question if they should join, or if joining was the right choice.

Overall I love the program, but would love these small changes made.  Not only to save me the hassle and the money but to also make me, as a Gold Card member, feel just that much more exclusive than I was as a regular “registered” Starbucks Card holder.

Brad Steven’s giving Starbucks Ideas a sneak peek

Then this coming Thursday is the beginning of March Madness.  The best sporting event of the year that typically does not have Oregon State in it.  With the tournament comes office pools and many many brackets being filled out, distributed, and talked about with almost every person you know.  I have what I think is my final bracket, but with UCLA having two potential game changing injuries, I may have to change it again tomorrow.

As there is a rumor that Starbucks may be unveiling a customer loyalty program tomorrow it got me thinking as to what this program can, will, and should look like.  A free drink every ten drinks?  Doesn’t seem like it’s worth it.  A bonus for auto-filling your Starbucks Card?  Potentially.  More personalized emails, offers, recommendations, etc.  Hopefully.  However, with my regular Starbucks having the occasional trivia games with free drinks (or high-fives), it hit me. 

Starbucks should unveil a nation wide NCAA bracket challenge.  Everyone is getting into it, even John McCain has his bracket, that you can sign up for and win McCain shwag (Sounds exciting).  

Think about it.  Starbucks makes a brackets that you can fill out online, or fill out in person at your local Starbucks.  They then tie each bracket to a registered Starbucks Card holder.  Starbucks is then able to put updates on their chalk boards each morning as to who the leaders at that particular Starbucks are and where they rank in the state or nation (if they are close to the top).  This creates a HUGE connection in the store, between the baristas and customers and even among the customers.  Starbucks offers, a weeks worth (1 a day) of whatever the customers most frequently ordered drink is (as it’s tied to their Starbucks Card) if they win the individual store bracket, maybe a month if they win the state, and a year if they win the whole thing.  A year worth of coffee at say $4 is still only apx $1500.  Not much to create the type of buzz and community that this would bring with it.This would bring people back to either the store or the website, create a bond between a large group of people, and in my opinion would drive up loyalty which in turn drives up sales.  They can then parlay this into other trivia games, fantasy sports leagues, random drawings, etc.

Now THAT is a good customer loyalty program for Starbucks if you ask me.  What do you think?  Am I to wrapped up in these two events?  Is it to crazy of an idea?