Sipping Coffee in the Clouds

Sipping Coffee in the Clouds

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  • Starbucks (SBUX, $86.86) customers can now earn more than just “stars” for their purchases. Beginning Wednesday, the coffee chain is partnering with Delta Air Lines (DAL, $29.22) and awarding 1 mile for every $1 spent at Starbucks in an alliance between “two of America’s most highly regarded loyalty programs,” the companies said in a press release.
  • Delta already lets its SkyMiles members earn miles with Airbnb, Lyft, and Instacart, as well as through its co-branded cards with American Express as the airline and others have expanded the ways customers can accrue points beyond flying.
  • The brands have two of the country’s most popular loyalty programs. Starbucks has more than 27 million US members and Delta has around 100 million global members. Expanding Starbucks Rewards is a goal for the company because it gives the chain access to customers’ data and ordering habits, which in turn helps the company target members with deals.

Why it matters

During a time when travel took a dive, loyalty programs are being used as a way to entice people to start exploring again. Companies have started working together to make their programs more attractive in the last year. Sephora purchases at Kohl’s earn members reward points at both retailers, similar to a Target-Ulta partnership for beauty purchases. Brands hope that by dangling more rewards, it can also help lure new loyal members and build stronger allegiance for them.

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