This is the opening paragraph of the letter I received from Chase: "As a loyal Starbucks Card Duetto Visa cardmember, we want to let you know about some important program changes which will affect your account. WHAT'S CHANGING? The credit card partnership between Starbucks and Chase Bank, USA, N.A. has ended. As a result, in April 2010 your Starbucks Duetto credit card account will be replaced with the new Chase Freedom credit card. We know you have come to expect great rewards with Chase and we think you'll enjoy the great features and benefits that come with Chase Freedom."
There is a two-page letter that explains the "decision" and lays out the benefits of the Chase Blueprint program. There is also a flyer, about one-third of a page, with a coffee cup, with the headline "NEW Avoid the interest on everyday spending with Full Pay." It has features of the Chase Blueprint program and a link to the chase.com/blueprint.
I am saddened and disappointed at this decision by Starbucks, but not surprised. I was a heavy, heavy user of the Duetto card for one reason - and one reason only. If you set up an automatic reload from the Duetto *credit* card to your Starbucks card, you got a 3% Duetto dollars reward each month. If you reloaded your Starbucks card any other way and on credit card purchases, you only got 1% Duetto dollars.
With the recent changes to the Starbucks card, it is *clear* that Starbucks considers that it has already "captured" its loyal customers who passionate, committed brand advocates and will continue to come to the stores no matter what rewards are offered.
New marketing initiatives - the Perfect Oatmeal coupon for one, the undrinkable "skinny" drinks for another - are aimed at expanding the customer base beyond the already converted sheep who flock to the High Church of Espresso morning, noon and night and into the fields of wavering faithful who have not yet drunk deeply from the cup of the gospel of Howard Schulz.
I will be canceling the card in April 2010. My Starbucks Gold card with the 10% discount is valid until August 2010 because I didn't register it until August 2009. I predict my Starbucks consumption will drop dramatically in September 2010.
The Consumerist looks like it might have gotten the news first. Laura Northrup has a post.
Starbucks And Chase End Duetto Rewards Credit CardThe Seatle Times Coffee City blog, written by Melissa Allison, also has something, posted at 6:03 p.m. read her post
The Starbucks Duetto Visa card seems like a relic of another time. A time when everyone thought that both coffee-infused sugar bombs and huge amounts of credit card debt were a good idea. Well, Starbucks is still with us, but the Duetto Visa card's run is over. read the complete post at The Consumerist
Starbucks discontinues Duetto Visa card, another blow for some loyalists
At the same time Starbucks is getting rid of its gold card, which cost $25 a year and was used by Starbucks' most loyal customers to get 10 percent discounts, the company is discontinuing its Duetto Visa card too. The Visa program began in 2003 with Bank One -- now part of JPMorgan Chase (like WaMu is). read the complete post at Melissa Allison's Coffee City blog for the Seattle times
6 comments:
I'm completely with you on this. I was a charter Duetto customer in 2003 (!) and it has made me a regular Starbucks customer. The thing is - there are two local coffee shops within 1/2 mile, and a few chain cafes (Panera, Einstein's, Bruegger's) just a few blocks away. It's not as if there aren't choices. Starbucks is taking away one of the major reasons for me to choose their coffee over the others.
Did you ever consider maybe Chase cancelled the partnership with Starbucks?
I heard that the Duetto Visa was also cancelled in Canada as well -- and a different bank was the partner there, so it seems unlikely that Chase was the one who broke it off.
This saddened me as well. When I got that letter I was so upset. My consumption will decrease as well. It was much nicer to earn the rebates. Not to mention, you got a discount when using the card. I have to have my drinks made with soy, and with the card I didn't have to pay the upcharge for flavored syrup or for soy. :(
I have the Canadian, Royal Bank of Canada Starbucks Visa with the same features as you all mention. I am super bummed out as this was a card that helped me pay for my expensive addiction. I think I may have to go to rehab now to get off the STARCRACK or CRACKBUCKS and save myself a few dollars
did you receive the complimentary 6 free (each month) beverage coupon book?! I probably should cut back anyway. Hey at least I'll have 6 more drinks free. I am a glass half full kind of guy. cheers
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