Starbucks and Bank of America Introduce Coffee and Cashback rewards
Starbucks and Bank of America have launched a collaborative rewards program targeted at retaining their shared customer base, the companies announced on Thursday.Â
As part of this initiative, any of Bank of America’s 45 million cardholders who link their accounts with Starbucks Rewards will receive 2% cash back for purchases made at Starbucks locations, as outlined in a joint statement by the companies.
Moreover, for every $2 spent at Starbucks, customers will earn an additional “star” that can be redeemed for drinks, food, and other products.
Shikha Narula, the head of consumer and small business rewards at Bank of America, expressed the desire to be involved in every transaction, regardless of size, emphasizing the bank’s commitment as the second-largest U.S. lender.
Starbucks’ loyalty program, established in 2009, boasts approximately 34.3 million rewards members whose spending significantly contributes to its U.S. revenue, as indicated in the company’s fiscal first-quarter earnings report.
Ryan Butz, Starbucks’ vice president of loyalty strategy and marketing, noted that the collaboration with Bank of America aims to provide added value and utility to participating customers.
This partnership supplements Starbucks’ existing joint program with Delta Air Lines. In November, Starbucks hinted at two upcoming rewards partnerships, one of which materialized as the collaboration with Bank of America, while the other involves a yet-to-be-announced “world-class hospitality company.”
