How has data reshaped digital media?

Loyalty programs have become a normal occurrence in all forms of retail commerce like clothing stores ,grocery stores. Loyalty programs have become so prevalent that most people who frequent an establishment participate in some type of loyalty program weather it be “a rewards member” or a “deals club.’’Basically any membership based program offered by a retailer that gives perks to its members. The barrier to entry can be as simple as signing up or having to pay a fee while entry into some loyalty programs must be earned.

Among loyalty programs one stands out above the rest , and has become an integral part of the business it belongs to. StarBucks Rewards was first launched in April of 2008 as “Starbucks card Rewards”. Later that year the program was extended to an exclusive new tier level for high level customer called the “Gold Card”. One year later the two programs would be merged into “My Starbucks Rewards” which had two official tiers “Welcome Level” and coveted “Gold Level”. Over the next few years Starbucks would continue to refine their loyalty program like adding “Stars” earned through purchases replacing the visit based system for freebies. Eventually in March of 2019 Starbucks had consolidated their rewards program into a single-level , multi tiered rewards model we know today. The biggest change had been the repurposing of the “Stars” into tier rewards that could be used whenever the member wanted.

The Starbucks Rewards program coupled with the phone app has grown to become a pillar of the Starbucks experience. Accounting for most of a 2.65 billion dollar raise in revenue with approximately 1.2 billion dollars loaded onto cards and the mobile app.

So now to ask the question how has data reshaped digital media?

The Starbucks app has leveraged data to create the ultimate loyalty program. Incorporating the best elements from both digital and retail this would not have been possible without data to begin with.

Media Ecology theory first introduced in 1962 by Marshall McLuhan is the study of how media, technology, and communications effects human environments. The theory assumes as it’s core concepts that media informs our actions , organize our experiences and binds us together.

The concept can be seen in how The StarBucks Rewards app affects the experience of a customer from the moment they enter a Starbucks by notifying baristas of the customers drink habits allowing for better service and customer relations. The transactions yield more data that is used to improve further on the metrics stated before.

In the book contagious by Jonah Berger which examines the phenomenon of “Going Viral”. Berger lays out 6 key components which make a product in his words “Contagious”.

One of them “Leveraging Game Mechanics” involves using game mechanics to increase engagement and integration of a product in the lives of customers. Starbucks uses its star system to indicate reward tiers that can be redeemed at any time. 25 stars the lowest reward tier will net you a free milk substitution for any drink the highest tier of 400 stars will get a free piece of premium merchandise. Customers in response to this rewards system began to order food strategically calculating their options before buying , pushing Starbucks to the forefront of their minds allowing greater conversion opportunities.

Berger also describes an element called Triggers which are sensory inputs like smells, sounds, and sights that bring a memory , idea, or thought back to the forefront of our minds.

The Starbucks app contains many triggers to keep customers thinking about the company. Loyalty programs build triggers while purchasing like entering a phone number or telling someone your last name forming habits.The stars add a new layer of triggers since many would check the number of stars they have for different reasons either way like stated before Starbucks is able to keep itself in front of people’s minds.

Data has made this possible for Starbucks and soon for many other brands.

Works cited

Jonah Berger,(2016) Contagious why things catch on

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