What is the Starbucks and Delta partnership?
Starbucks and Delta: A Dream Team for Soaring High: A Partnership
Starbucks and Delta Airlines Flight formed a strategic alliance in 2019 to improve the customer experience by linking their loyalty programs and providing customers with unique and exclusive/rewarding products, services, and discounts. Thus, owners of Delta’s SkyMiles program and Starbucks Reward program can earn points across these brands while traveling or frequenting Starbucks outlets and gain special access to certain privileges.
The war was a significant factor in the creation of the partnership between the two countries as well as the formation of strategic alliances and cooperation.
Delta and Starbucks are two multinational corporations which have common goals and objectives, thus providing their customers with high-quality products and services. Both companies have a vast customer base with frequent travelers; Delta flies 150 million passengers per year, while Starbucks records 90 million customer transactions per week.
In 2019, Delta was interested in finding the brand partners that their customers already had a relationship with so that they could still offer something unique to the flying public. Starbucks wanted to know whether there was another approach they could take to better reward their consumers who were members of the Starbucks Rewards program. These were justified based on the premise that Delta and Starbucks had mutual interests in the customer experience.
When Delta and Starbucks discussed joining their programs and assets, there was an understanding that it would provide more benefits, more convenience, and more joy for the members. Therefore, came the idea of an innovative partnership that would turn into the current successful and popular strategy game.
What the Partnership Entails
Through the program, consumers who hold Delta SkyMiles credit cards can earn one mile for every dollar spent on purchases at Starbucks outlets using their Delta co-branded American Express cards. Also, for Starbucks Rewards members, one Star is given for every $1 spent on the Delta Airlines website and applications, with purchases of services such as flight tickets, upgrades, preferred seating, Delta Sky Club memberships, and other related items.
They are also able to enter member-only deals. For instance, Starbucks has a special promotion for SkyMiles where customers are allowed to earn double stars on specific purchases at least two or three times a year. Members also have the opportunity of attaining free coffee, miles, or even upgrading their Starbucks’ Rewards membership at certain intervals.
To get the above benefits, a member has to connect their Starbucks Rewards and Delta SkyMiles either on the account at Delta. com or using the Starbucks or Delta apps. This allows both accounts of the loyalty programs to interact, allowing members to earn and redeem rewards.
Starbucks and Delta have also taken customer service a notch higher by introducing new products in airport settings. Delta has launched the first Starbucks Evenings location in domestic airport lounges and people can have an excellent cup of coffee, wine, and beer along with some snacks in the evening. Also, Starbucks cafes are located in over 100 outlets in Delta hub airports, including Reserve bars that offer unique, high-end brand coffee products.
Ongoing Innovation
Another area that serves as a focal point of the Starbucks-Delta cooperation is the development of innovations that would be helpful for loyal members. For instance, Delta has recently incorporated Starbucks order and delivery services or meals on the plane. In Delta’s Fly Delta app, passengers can order their favorite food and beverages from Starbucks, McDonalds, and films from the brands and have them delivered to their seats on the planes.
Starbucks and Delta also keep getting the right offers and promotions relevant to their loyalty program subscribers. Previous promotions include bonus miles on airport Lyft rides, free coffee and pastry for connecting accounts, and discounted coffee for Delta tickets booked with miles. It means that no matter how much one goes through the app, there will be always something new to discover.
The two brands state that this is just the start of making improvements to travelers’ experience throughout their journey. As many of the planes are filled with passengers who are likely Starbucks customers as well, both companies understand the sheer value in continuing to grow their memberships and brands.
Benefits for Each Brand
The unique Starbucks-Delta collaboration carries advantages for each brand and their loyalty program members, including The unique Starbucks-Delta collaboration carries advantages for each brand and their loyalty program members, including:
For Starbucks:
It also reached out to Delta’s most valuable travelers, those who often fly, to bring more people into the Starbucks Rewards program.
The case involves more app downloads and purchases by Delta Flyers, both as a pre-, during, and post-flight activity.
The flexibility to advertise Starbucks stores in airports with travelers that have little or no other choice but to patronize Delta.
For Delta:
Depending on the perks that Starbucks itself prefers, passengers will remain loyal to the company.
The Integrated Starbucks offers to improve Delta’s world-class airport lounge environment.
To enhance the brand equity of Delta Airlines' image in terms of being customer-centric and innovative.
For Members:
Provided an opportunity to earn rewards on two of the largest loyalty programs
Possibility of getting to know the most unique individual offers and bonuses
An easy connection between an account for commuting and an account for buying coffee
Key Takeaways
Starbucks and Delta’s loyalty programs showed how it is possible to obtain great value from a strategic partnership and integration. Both airlines have linked their accounts to offer unique airport and in-flight services and products, daily, weekly, or monthly news and special offers, and privileges to the members of the Frequent Flyer Program in parallel.
Such cooperation is a good example of how two customer-oriented companies can continue to innovate and satisfy their valued members even in a sphere that is rather marginal to their primary services. With such strong reward propositions, the partnership is also able to acquire new loyal members as well.
As Starbucks and Delta go further on symbiotic innovation, they are setting new rules about value, convenience, and experience for their branded loyalty programs. The sky is the limit for this high-flying strategic alliance aimed at helping customers feel special for the entire duration of their journey or even before and after that.
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