Starbucks Rewards

Starbucks makes money by getting people to load cash onto their app to earn “Stars” for free drinks. They give customers a fast way to pay and the fun of “earning” their morning coffee. They won by making their app the easiest way to skip the line and order ahead. Their secret is that they actually hold billions of dollars of their customers’ money like a giant, interest-free bank. They use Data and Capital Leverage to run a Referral/Loyalty model through a mobile app.