SHOP TALK: Rewarding loyalty
Consider this: 40% of Starbucks transactions in the US come from a Starbucks card
There’s some psychology behind loyalty programmes, you know. When a person gets rewarded, special pathways in the brain are activated. This in turn (through reinforcement) makes one seek out more rewarding stimuli. They, loyalty programmes, that is, foster the ultimate bond, albeit a marketing one. In return for pledging allegiance to you (the brand), I (the consumer) get something. This behavioural support snags you (brand) both sales — through repeat purchasing — and, less tangibly, data. Now, last week I went to the launch of the “Starbucks Rewards” programme in SA. One of the most frequent questions that Taste Holdings boss Carlo Gonzaga has received since launching the global coffee brand in the country last year, hasn’t been around capital allocation or shareholder value but when the group will launch the membership scheme locally. Taste is the local licence holder of the brand. If you were wondering — the most frequently asked questions were whether or not it would sell Pumpk...
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