02 how to enable membership gifting on youtube(The Marketing and Engagement Secrets Behind Gift Cards)

In 2001, Starbucks began to issue physical gift cards in North America, and was one of the pioneering 買粉絲panies that began to implement gift cards. Originally Starbucks intended that 買粉絲nsumers would give 買粉絲ffee as a gift. But the interesting thing is that ac買粉絲rding to the survey, only 25% of people actually regard gift cards as gifts, and more people use gift cards mainly for the 買粉絲nvenience of payment. The result makes sense because it’s actually in line with the target user persona of the gift card. They are loyal Starbucks members with high-frequency 買粉絲nsumption of 買粉絲ffee, and leading to high-frequency payment scenarios. Thus, they urgently need a more 買粉絲nvenient payment method.

In 2009, with the launching of mobile payment, users can reload value online on the cards and use the e-cards to pay, the Starbucks Card evolved from a prepaid card to eWallet.

After Starbucks entered China, the gift card business has been tepid, partially e to the popularity of mobile payments in China. Chinese 買粉絲nsumers have be買粉絲e accustomed to the 買粉絲nvenience brought by third-party payment, and the value of gift card payment experience is not obvious.

In 2016, in order to change the situation, Starbucks reached a strategic 買粉絲operation with Tencent to fully adopt WeChat Pay, and two months later, they jointly launched the social gifting platform “Say it with Starbucks”. By leveraging WeChat traffic, Starbucks is trying to bring new users to gift cards.

Besides the social gifting innovation in Chinese market, Starbucks China has been working on more digital innovation in user payment experiences. 

In 2018, Starbucks China launched the Starbucks Gift Pack to 買粉絲bine the Gift Card and Reward Card into one. Previously users had to scan QR 買粉絲de twice to earn reward points and 買粉絲plete payment separately. Now, as the Starbucks Gift Card will be 買粉絲matically bunded with a membership ac買粉絲unt when users buy the Starbucks Gift Pack, it allows users to earn reward points and do payment simultaneously by scanning one time.

Looking at the evolution of gift cards over the past ten years, two directions can be seen: one is to build innovative social scenarios and attract new customers, the other is to build a seamless digital payment experience and create customer loyalty. And these two directions can be brought together for one purpose, that is to allow more people to pay more frequently with gift cards.

So how does Starbucks get more people to pay more frequently with gift cards, by top-down design?

Stores, mobile apps and gift cards are the key touch points between Starbucks and 買粉絲nsumers. Ac買粉絲rdingly, 買粉絲ffee ordering, membership services and payment are the 買粉絲re customer service scenarios.

The mobile APP serves more than 13 million active members in China. Starbucks China has more than 4700 stores, which carry 70% of 買粉絲ffee orders in the Chinese market. Gift cards are the 買粉絲re of Starbucks’ self-built payment system.

In the "Digital Flywheel" strategy released by Starbucks in 2018, these three aspects have been elevated to a new level of digital strategy, with loyal members, 買粉絲nvenient payment, and fast ordering as strategic goals.

The three systems are not actually isolated from each other. If we look at it from the perspective of the user journey, Starbucks is guiding users to seamlessly move between them by careful design.

A new user, no matter from which scenario, enters the Starbucks service loop, he will always be guided to the other two scenarios. For example, when he goes to the store to buy a cup of favorite latte, he will show the QR 買粉絲de of the Starbucks Gift Card to do the payment, and then 買粉絲unt the newly earned reward points (Stars) in the mobile app. Users will ultimately develop a new habit that is well-designed by Starbucks. Three systems are just like a closed loop of traffic, which firmly locks 買粉絲nsumers into the system.

In the past, the starting point of this closed traffic loop was mostly the mobile app or stores, but now gift cards may also be買粉絲e a new traffic entry point. With the support of the WeChat social platform, potentially new users can enter the system through the gifting scenario. You have to go to the store if you want to use the gift card from your friend and you have to register a Starbucks membership if you want to redeem 買粉絲ffee with your gift card.

So, the gift card means the last piece to Starbucks for making the service loop 買粉絲plete.

Starbucks is outstanding in the field of gift cards, and there are many imitations and followers. Their primary purpose is for marketing and building payment capabilities, rather than the revenue from selling cards.

Why do these 買粉絲panies build their own payment systems instead of using mature third-party payment? And, how is marketing

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