Starbucks (NYSE:SBUX) announced a partnership with Spotify that allows Spotify's subscribers to get reward points that can be redeemed at a local Starbucks.
Spotify is paying Starbucks for the right to give out Starbucks reward points to its subscribers, reported Market Watch. In addition, consumers can link their Spotify and Starbucks accounts and then suggest songs to include in the music playlists of their local Starbucks.
According to Starbucks CEO Howard Schultz, the deal is the first of many similar rewards partnerships to come. It's part of Shcultz's plan to fuel growth in the way of technology. Using loyalty points is central to expanding a steady base of loyal customers, but loyalty points also generate revenue from other companies willing to pay to use the rewards.
The coffee chain recently introduced its first loyalty program, along with expanded options for its mobile order and pay program, which launched in Portland a few months ago.
-See this Market Watch story
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