Saw an ad this week for a new Starbucks Gold card. It promised me 10% off most purchases, some free drinks, complimentary birthday drinks, etc.
What it didn’t tell me is that I lose out on some of the benefits of the regular Starbucks card. No more free syrups or free refills. Most important, the ad never mentioned that the annual cost of the Gold card was $25.00. Full details here.
Perhaps their best customers, which I am not, will think it is worth it. And it may be. But I don’t like the fact that I had to struggle to find out that there was a cost involved. Barnes & Noble, which also offers membership discounts, (which you can use, for example, to purchase my book, All You Need Is A Good Idea!) is very upfront that there is a $25.00 annual charge.
Now, this lack of complete, relevant disclosure from Starbucks will not keep me up at night (caffeine joke). Though it is compounded by the fact that you only get some of the benefits after you “unlock” the card by registering it. It is not as bothersome, for example, as filling out pages of information online, only to find out at the end that there is a "catch" that completely changes the terms of the offer (shipping charges are prohibitive, no returns).
You owe it to your customers to be as transparent as possible, as early as possible. Especially when you don’t have to.
Seem like a good idea?
UPDATE: Here is the exact copy from the ad I saw: "10% off your Starbucks purchases, plus all sorts of members-only perks with online registeration." Nary a hint, suggestion, or implication that there is a cost of any kind involved.
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