“And Spotify has a new pool of 10 million potential subscribers to target. “Loyalty programs and music platforms are likely to be more intertwined,” said Djamel Agaoua, CEO of MobPartner, San Francisco, CA. “Through its partnership with Spotify, Starbucks has given its customers a way to engage with its brand even when customers are not drinking their favorite cup of specialty joe. This feature will mark the first time that Starbucks has enabled its points to be available outside of its stores. Customers who purchase Spotify’s streaming packages will also be eligible to earn more rewards points, which can be redeemed for free beverages. The playlists will be available through both the Starbucks and Spotify apps. “If the fit makes sense to add music, i.e., to improve your Uber ride or your time in a coffee shop, it makes a lot of sense.”Īctive participation The Starbucks and Spotify partnership will encourage active participation among members of My Starbucks Rewards, who will be able to create their own in-store playlists for Starbucks stores and continue listening to them even after they have left the premises. “Because music is universally loved, it is a powerful medium to try to harness on your behalf. “From Uber to now Starbucks, you can see brands embracing technology to improve upon user experience,” said Ben Hordell, partner at digital advertising agency DXagency, Edgewater, NJ. Although ride-sharing application Uber also maintains a Spotify partnership, the Starbucks announcement suggests the wide potential for other food and beverage brands to leverage music-based cross-partnerships to offer consumers more incentives to be active loyalty program members.
Spotify’s streaming will now be integrated with the beverage brand’s popular mobile loyalty program, My Starbucks Rewards, which boasts 10 million users, and will enable customers to curate playlists for Starbucks stores. Starbucks’ partnership with streaming service Spotify points to the untapped potential of combining food and beverage marketers’ mobile loyalty programs with music, as younger demographics put smartphones at the center of their content consumption and may be swayed to join programs with cross-partnership perks.
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