Delta’s Promotion With Starbucks Is Such a Hit It Generated 1 Million Linked Accounts in 16 Days

In October, Delta Air Lines and Starbucks announced a partnership that allowed SkyMiles members to link their account with their Starbucks Rewards account and earn additional benefits in both programs.

Click here to read the story at inc.com.

Discussion Questions:

1. What is brand loyalty?
2. Why is brand loyalty important to brands like Delta and Starbucks?
3. How do you think rewards programs help to build brand loyalty?
4. Why do you think Delta chose to partner with Starbucks?
5. Based on information from this news story, was the partnership a success? How so?
6. Delta will soon offer free WiFi for SkyMiles members. They generate millions annually from sales of WiFi. Why would they offer it for free?
7. What is competition?
8. What is competitive advantage?
9. How might free WiFi provide Delta with a way for differentiating the airline from competing airlines?
10. How might free WiFi represent a positioning strategy for Delta?
11. What else could Starbucks do to incentivize consumers to sign up for their loyalty program?
12. What else could Delta do to incentivize consumers to sign up for the SkyMiles program?