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Analyst: Starbucks Misses The Mark With Customer Rewards Program

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Starbucks digital rewards program now has 13 million members. But according to RBC Capital Markets analyst David Palmer, the coffee house juggernaut could be making a big mistake when it comes to how it on-boards new members to the program. In an interview with Business Insider, Palmer said, “They have a closed system where you have to preload a card and link that card to your Starbucks app to start a digital relationship where you can then do mobile order and pay," effectively entering into a debit-card relationship with Starbucks--which not everyone likes. While the company is able to make money on the cash float from customer deposits, if Starbucks’ wants to catch up to Panera Bread — which has the largest restaurant loyalty program with 27 million members — Palmer says it’s going to have to change something. Still, Starbucks could get a boost later this year when it launches the first ever rewards debit card in a partnership with Chase. http://markets.businessinsider.com/ne... http://www.wochit.com This video was produced by YT Wochit Business using http://wochit.com

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