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Starbucks The Biggest Unregulated in the United States of America

๐—ฌ๐—ฒ๐˜€ ๐˜†๐—ผ๐˜‚ ๐—ต๐—ฎ๐˜ƒ๐—ฒ ๐—ฟ๐—ฒ๐—ฎ๐—ฑ ๐—ถ๐˜ ๐—ฟ๐—ถ๐—ด๐—ต๐˜, #๐—ฆ๐˜๐—ฎ๐—ฟ๐—ฏ๐˜‚๐—ฐ๐—ธ๐˜€ ๐˜„๐—ต๐—ถ๐—ฐ๐—ต ๐—ถ๐˜€ ๐˜„๐—ผ๐—ฟ๐—น๐—ฑโ€™๐˜€ ๐—บ๐—ผ๐˜€๐˜ ๐˜๐—ฟ๐˜‚๐˜€๐˜๐—ฒ๐—ฑ ๐—ฎ๐—ป๐—ฑ ๐—น๐—ฎ๐—ฟ๐—ด๐—ฒ๐˜€๐˜ ๐—ฐ๐—ผ๐—ณ๐—ณ๐—ฒ๐—ฒ ๐—ฏ๐—ฟ๐—ฎ๐—ป๐—ฑ๐˜€ ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐˜„๐—ผ๐—ฟ๐—น๐—ฑ ๐—ถ๐˜€ ๐—ฎ๐—น๐˜€๐—ผ ๐˜๐—ต๐—ฒ ๐—ฏ๐—ถ๐—ด๐—ด๐—ฒ๐˜€๐˜ #๐—ฏ๐—ฎ๐—ป๐—ธ ๐—ถ๐—ป ๐—จ๐—ฆ๐—”, ๐—ฎ๐—ป โ€˜๐—จ๐—ก๐—ฅ๐—˜๐—š๐—จ๐—Ÿ๐—”๐—ง๐—˜๐——โ€™ ๐—ฏ๐—ฎ๐—ป๐—ธ ๐˜„๐—ต๐—ถ๐—ฐ๐—ต ๐—ต๐—ผ๐—น๐—ฑ๐˜€ ๐—บ๐—ผ๐—ฟ๐—ฒ #๐—ฐ๐—ฎ๐˜€๐—ต ๐—ฟ๐—ฒ๐˜€๐—ฒ๐—ฟ๐˜ƒ๐—ฒ๐˜€ ๐˜๐—ต๐—ฎ๐—ป ๐Ÿด๐Ÿฑ% ๐—ผ๐—ณ ๐—ฎ๐—น๐—น ๐—จ.๐—ฆ. ๐—ฏ๐—ฎ๐—ป๐—ธ ๐—ฟ๐—ฒ๐˜€๐—ฒ๐—ฟ๐˜ƒ๐—ฒ๐˜€ ๐—ฎ๐—ป๐—ฑ ๐˜๐—ต๐—ฎ๐˜ ๐˜๐—ผ๐—ผ ๐—ฎ๐˜ ๐˜‡๐—ฒ๐—ฟ๐—ผ ๐—ฝ๐—ฒ๐—ฟ๐—ฐ๐—ฒ๐—ป๐˜ ๐—ถ๐—ป๐˜๐—ฒ๐—ฟ๐—ฒ๐˜€๐˜.

Interested to know more, how Starbucks popularized the use of pre-paid cards by integrating with its customer loyalty program and became the biggest UNREGULATED BANK in USA.

๐™‡๐™š๐™ฉโ€™๐™จ ๐™™๐™š๐™˜๐™ค๐™™๐™š ๐™ฉ๐™๐™ž๐™จ ๐™›๐™ค๐™ง ๐™ฎ๐™ค๐™ช ๐™–๐™จ ๐™ฎ๐™ค๐™ช ๐™ง๐™š๐™–๐™™ ๐™ฉ๐™๐™ž๐™จ ๐™ฅ๐™ค๐™จ๐™ฉ.

With the exponential growth in digital transactions Starbucks customers have also been increasingly opting to pay with their Starbucks pre-paid account instead of cash or credit cards over the years as they find it has the best loyalty program.

The customers receive additional discounts or rewards after making payments through Starbucks accounts. Many retail and restaurant chains across the Globe have followed the Starbucks rewards program as a model for their customer loyalty programs as well.

Starbucks launched its first reloadable cards on November 14, 2001 and since then Starbucksโ€™ loyalty programs are well-loved by its large customer base.

Do you know why?

Because the Starbucks loyalty program offers ease of use and anyone can be a part of the scheme smoothly. The structure of these loyalty programs is quite simple and extremely appealing that many customers get attracted to them, making them No. 1.

Starbucks now has 24 million members with $1.6 #billion cash reserves in deposits which is more than 85% of all U.S. banks cash reserves put together in itโ€™s unregulated bank. Interestingly, it does not even pay interest on the balances held on its app or with gift cards. Starbucks enjoys interest-free liabilities from its loyal customers. Moreover, itโ€™s also worth your attention that most of the loyalty programsโ€™ money (gift cards) is never fully redeemed by the customers.

There are millions of Starbucks gift cards given and received every year, which can attract new customers and make existing customersโ€™ lives easier. Card themes range from birthdays, Diwali, Christmas to Motherโ€™s Day and Teachersโ€™ appreciation. Amazon, Walmart, and Starbucksโ€™ websites all sell them, and they are a popular gift for people you donโ€™t know very well.

Research indicates recipients rarely use the full amount , nearly 40% of 18-29-year-olds lose their gift cards before they can spend them, and around 25% of 30-64-year-olds do the same, the card issuer gets interest-free money.

As per the data available Starbucks gift cards (value $164.5 million) never got redeemed in 2020. In essence Starbucks received that money as a gift.

Now this is the power of well-structured loyalty programs like Starbucks.