The Starbucks way: Interaction is key for customer loyalty programs

Consumers like rewards—and attention. In its new app, Starbucks offers more engagement opportunities, something that one digital marketer says is essential to customer retention.

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In this age of interaction, consumers are leaning toward highly personalized loyalty programs.

On Tuesday, Starbucks’ brand managers released a revamped rewards program and app to meet that emerging demand. The coffee chain’s rewards program boasts 17 million members worldwide.

Customer loyalty programs boil down to interactive branding tactics, says Geoff Smith, the chief marketing officer of the digital marketing platform CrowdTwist. The push away from “traditional loyalty programs” is necessary for brand managers who want to retain their customers.

Here’s more on how Smith sees loyalty programs evolving:

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