Monday, December 04, 2006
A Card in Hand is Worth More Than Two Gifts Under the Tree
I read this blog about the Starbucks card and wanted to throw in my $.02 on the topic. Having given (and received) this card, I know first-hand how easily they can become a staple item in someone’s wallet. But I think this is an example of a good loyalty program. Given that many people make a Starbucks stop a part of their daily routine, and that one in eight visitors use a Starbucks card to pay for their drink, the coffee retailer has a wonderful opportunity to get to know its customers and create tailored marketing campaigns. In this time of holiday gift-giving, I wouldn’t be surprised if Starbucks cards accounted for a large portion of the $24.8 billion in sales projected here for gift cards. As one analyst pointed out, why not give a gift that allows the recipient to choose how its used?