Starbucks’ recent rewards program update should have been a brand win, with more ways to earn, clearer tiers, and friendlier currency rules. Instead, it triggered a wave of frustration from many members who believed they’d been “demoted” when they saw their status listed as green. Many longtime customers assumed they were still gold, not realizing that Starbucks had sunset that tier back in 2019. By reopening a communication channel that had been quiet for several years, the brand unintentionally sparked a sense of loss before customers ever reached the positive changes.
Despite the uproar, Starbucks moved its program in a direction strongly supported by Forrester’s loyalty research: more diversified engagement, more recognition, and more flexibility. The following program improvements provide a foundational structure and flexibility for future growth:
- Earning opportunities that go beyond the transaction. In Forrester’s Retail Topic Insights 2 Survey, 2025, 76% of consumers say they like to engage with loyalty programs even when they aren’t making a purchase. The new Starbucks structure reflects this shift: Members can earn through gamified engagements, using a personal reusable cup, bonus opportunities, and card reloads, all activities that deepen relationship value beyond the purchase. This aligns with Forrester’s guidance that a well‑balanced program must mix transactional and nontransactional benefits to build long‑term loyalty.
- New tiering that recognizes emotional loyalty. The introduction of green, gold, and reserve tiers reinstates a clear path for recognition and feeling of exclusivity. Forrester’s research shows that members respond to experiences that feel exclusive, personal, and earned. Among US online adults who belong to loyalty programs, well over half agree that getting special treatment is important to them. Published benefits and visible milestones give customers something to aspire to where status is both functional and emotional.
- Updated star rules that increase perceived value and reduce friction. One of the most customer‑friendly changes, and one of the least noticed, is the update to reward currency expiration. Stars now behave more like airline points: Gold and reserve members avoid expiration entirely, and even green members can keep their currency active through basic engagement. This small structural shift changes how customers perceive the value of their rewards: earned, bankable, and worth building toward.
What Loyalty Marketers Can Learn From Starbucks
Loyalty programs are a never-ending pursuit to improve the customer experience and maximize the value of the relationship over time. To this end, it’s best practice to enhance, optimize, and sometimes completely replace a loyalty program if it’s not driving the right behaviors and outcomes. To avoid missteps and confusion, loyalty leaders should focus on these best practices:
- Overcommunicate change. Mitigate perception risks before any program update by auditing member expectations, preparing transparent explanations, and creating a communication plan that reinforces value at every step. Program improvements must be framed through the lenses that customers care about: benefits, recognition, identity, and exclusivity. Once you communicate program updates, don’t assume comprehension: Integrate content across touchpoints that educates members about program benefits and mechanics as they engage.
- Balance transactional and nontransactional rewards. If a small percentage of your program activity comes from nontransactional engagement, it’s time to rebalance program benefits. Members want ways to participate that aren’t tied to spend, with relevant challenges, feedback opportunities, experiential benefits, and recognition moments. These deepen loyalty in ways that discounts alone never will.
- Design tiers for aspiration, not confusion. If your program uses tiers to segment members, statuses should feel achievable, understandable, and motivating. Published benefits, clear milestones, and visible progress ensure that members know where they stand. When tier logic or benefits are unclear, members tend to default to suspicion, not excitement.
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