Tuesday, February 20, 2024

Starbucks is Banking on Interactive Participatory Marketing


Starbucks, the world’s largest coffee chain, has recently announced a new loyalty partnership with Bank of America, one of the leading financial institutions in the U.S. The partnership aims to offer millions of Bank of America cardholders and Starbucks Rewards members the opportunity to earn more benefits by linking their accounts. This is an example of interactive participatory marketing, a strategy that involves engaging customers in co-creating value and enhancing their experience with a brand driving new electricity into both brands according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Interactive participatory marketing is based on the premise that customers are not passive recipients of marketing messages, but active participants who seek meaningful interactions with brands that reflect their values, preferences, and lifestyles. By inviting customers to join a community, share feedback, customize products, or access exclusive rewards, brands can foster loyalty, trust, and advocacy among their customers.

Starbucks and Bank of America are leveraging interactive participatory marketing to create a win-win situation for both parties. For Starbucks, the partnership allows them to tap into a large customer base of Bank of America cardholders, who can now earn cash back and Stars (the currency of Starbucks Rewards) on their purchases at Starbucks. This can increase the frequency and amount of spending at Starbucks, as well as the retention and satisfaction of Starbucks Rewards members. For Bank of America, the partnership enables them to offer their clients a unique value proposition that combines financial and lifestyle rewards. This can enhance their competitive advantage, customer loyalty, and cross-selling opportunities.

The partnership also benefits the customers, who can enjoy more rewards and convenience by linking their accounts. Customers can earn 2% cash back from Bank of America and one Star per $2 spent at Starbucks, on top of the rewards or card benefits they already earn. They can also unlock their benefits through qualifying Starbucks in-app purchases with their linked Bank of America debit or credit card, such as reloading a digital Starbucks gift card, ordering ahead, or paying in the app at the register. The Stars earned can be redeemed for free drinks, food, merchandise, and whole bean coffee at Starbucks.

By offering customers more ways to earn and redeem rewards, Starbucks and Bank of America are creating a positive feedback loop that encourages customers to engage more with both brands. This can lead to higher customer lifetime value, word-of-mouth, and brand equity for both partners. Interactive participatory marketing is a powerful tool that can help brands differentiate themselves in a crowded and competitive market, and create lasting relationships with their customers. Starbucks and Bank of America are showing how this strategy can drive sales and growth for both parties.

Are you looking for new customers? Do you want to keep your current customers while building new electricity? According to Johnson, “Brand relevance is in part driven with innovation in new food products in combination with new avenues of distribution all of which are the platform for the new electricity.” 

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply and includes such things as fresh foods, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing. Don’t limit your ideations to just a new menu item. Think local, grow with others that are successful around you.

All retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food that is portable, fresh, with differentiation that is familiar not different. 

Foodservice Solutions® team is here to help you drive top line sales and bottom-line profits. Are you looking a customer ahead? Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may the clue you need to propel your continued success.

No comments:

Post a Comment