Should more brands offer rewards linked to store purchases?
Starbucks and Kellogg are among the few brands that have figured out a way to tie their rewards programs to grocery store purchases.
Last week, Starbucks announced an expansion of its rewards program to include Starbucks K-Cups Packs and ready-to-drink beverages sold in grocery aisles.
The expansion more than triples the number of products in grocery stores eligible for “Stars” through the Starbucks Rewards loyalty program. Previously, only packaged roast and ground coffee, Via instant coffee and Via instant refreshers were available.
To earn credit for a purchase at a grocery store, members can either text a scan of the receipt, upload a digital receipt or mail the receipt. For whole bean and ground packaged coffee and Starbucks VIA Instant, codes on the packages still have to be submitted online for credit.
The amount of stars varies by product. Stars can be cashed in for free merchandise inside Starbucks locations and other special perks.
In 2015, Kellogg became the first consumer packaged goods company to use a combination of retailer frequent shopper integration and receipt scanning to collect points for purchase. Similar to Starbucks, members can take a photo of their receipt with their mobile phones and then text, upload, e-mail or mail it to Kellogg’s Family Rewards to collect their points.
Another option is linking rewards to grocery store cards. Members enter the loyalty card ID number of a partnering retailer on the Kellogg’s rewards site. Once they receive e-mail confirmation that their grocery card has been approved, they can earn points automatically every time they shop.
Kellogg instituted the two options after finding that customers were frustrated having to enter codes found on the inside of packages to collect points and earn rewards.
Huggies, which is owned by Kimberly Clark, similarly last June moved away from codes to a receipt and loyalty card rewards setup. At the time of the change, Huggies said, “You asked, we listened!”
- Starbucks Rewards Loyalty Program Expands in Grocery Locations – Starbucks
- Starbucks Rewards – Starbucks
- Starbucks Third-Quarter 2017 Conference Call – Seeking Alpha
- Kellogg enhances Kellogg’s Family Rewards program in the U.S.; new technology, more participating brands make it easier to collect points, earn rewards – Kellogg
- Kellogg’s Family Rewards – Kellogg
- Huggies Rewards – Huggies
DISCUSSION QUESTIONS: Why aren’t more vendor loyalty programs linking to store purchases? Do stores benefit from such programs?