Changing Your Loyalty Program? Be Prepared for a Potentially Brutal Impact on Your Brand

Starbucks saw a 50% plunge in consumer perception

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A lesson for brands thinking about overhauling their loyalty programs to save some money or boost sales: You could be doing more harm than good.

The most recent brand to prove this point is Starbucks, which just saw a dramatic drop in consumer perception after overhauling its rewards platform.

On Feb. 22, Starbucks announced that, starting in April, it would change its loyalty program from rewarding customers based on number of visits to instead rewarding the amount of money spent.

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