Starbucks and Bank of America have initiated a collaborative rewards program as of Thursday, aiming to solidify and expand their relationship with the millions of customers they share. This strategic partnership represents a significant move to intertwine banking and retail loyalty benefits, offering a unique value proposition to consumers.
BofA and Starbucks Unveil Cash-Back Rewards Program Partnership
Under this innovative program, Bank of America’s extensive customer base of 45 million cardholders now has the opportunity to earn 2% cash back on their Starbucks purchases. Cardholders must link their Bank of America accounts with their Starbucks Rewards accounts to avail of this benefit.
Furthermore, the program is designed to reward customers more generously for their loyalty; for every $2 spent at Starbucks, patrons will earn an additional “star.” These stars can then be redeemed for various rewards, including drinks, food, and other merchandise at Starbucks outlets.
Shikha Narula, who leads the consumer and small business rewards sector at Bank of America, emphasised the bank’s ambition to be a part of their customers’ daily transactions, no matter the scale. Bank of America stands as the second-largest lender in the U.S., and this partnership underscores its commitment to enhancing customer engagement and satisfaction through innovative rewards programs.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Starbucks’ loyalty program, launched in 2009, has seen significant growth and success over the years. With approximately 34.3 million members, the program accounts for a substantial portion of Starbucks’ revenue in the U.S., as indicated in the company’s fiscal first-quarter earnings report.
According to Ryan Butz, Starbucks ‘ vice president of loyalty strategy and marketing, the collaboration between Starbucks and Bank of America seeks to offer “new value and new utility” to customers who participate. This partnership builds on Starbucks’ ongoing rewards program with Delta Air Lines.
In November, Starbucks mentioned it would unveil two rewards partnerships, including the Bank of America collaboration and another forthcoming partnership with a yet-to-be-named leading hospitality brand.
