Starbucks Korea has reported that since the launch of its subscription service ‘Buddy Pass,’ customers have significantly increased spending and visit frequency at stores. The analysis over the past two months indicates that subscribers are receiving benefits valued at more than double the subscription cost.
The Buddy Pass, launched on October 1st, offers a 30% discount coupon on handcrafted beverages available after 2 PM, among other benefits. Originally planned as a temporary program ending in December, it has now become a regular offering.
Customers using the Buddy Pass showed, on average in November, a 61% increase in purchase amounts and a 72% increase in the number of transactions compared to September, before subscribing.
The monetary value of benefits received by subscription users was estimated at an average of 23,300 KRW per month, nearly three times the subscription fee of 7,900 KRW, which was recently reduced from 9,900 KRW. Frequent visitors can enjoy benefits worth up to 64,800 KRW, equivalent to eight times the subscription fee.
Baek Ji-Woong, Starbucks Korea’s planning manager, stated that the Buddy Pass has led to customers purchasing more and visiting more often, and the company aims to enhance the service experience as its user base continues to grow.