Starbucks will introduce web3 rewards programme
Starbucks which is the global coffee store franchise leader plans to introduce a new Web3 rewards programme. This will have new digital collectibles which will draw new consumers and be advantageous to current customers in the company's core retail outlets.
This web3 initiative, includes coffee themed NFTs which will not only serve as digital collectibles but would provide their owners with access to exclusive content and other perks. The reveal will take place during Starbucks' Investor Day on September 13. As part of this new digital Web 3-enabled initiative, the company will build on Starbucks Rewards' engagement model with its powerful spend-to-earn Stars approach while also introducing new strategies for emotionally engaging customers, according to Starbucks founder and now interim CEO Howard Schultz, who was speaking during the company's fiscal Q3 earnings call on Tuesday. Collectibles are seen as a way of extending customer loyalty. In order to assist with the project, the company hired Adam Brotman, the architect of its Mobile Order & Pay system and Starbucks app. In terms of tech inno,vations Mobile Order & Pay has been one of Starbucks’ biggest successes.
The company is considering integrating their digital Starbucks Rewards ecosystem with Starbucks-branded digital collectibles, as both a reward and a community building aspect, the CEO briefly discussed. This will provide an altogether new set of digital network effects, he claimed, that in addition to attracting new clients, this will also enhance their existing clientele at their main retail facilities. There were no details on what Starbucks NFTs would look like, what features they would offer or even what blockchain it would use. There was a hint that the plan was still in the works, indicating it would be multichain or chain-agnostic.
As per reports, beat analyst estimates the company's quarterly results which is a 9% increase in global revenue to $8.2 billion quarter-over-quarter.
Schultz also mentioned on the call that the Web3 move is a part of an effort to attract and retain Starbucks' younger customers. Back in April, when Schultz stated that Starbucks would be joining the NFT business sometime before the end of the year, the company had first revealed its intentions to join the nonfungible token (NFT) bandwagon. A Web3 loyalty programme may not just be introduced by Starbucks in the near future.
Hang, a blockchain startup for business-to-business transactions, earned $16 million in Series A funding last month led by Paradigm. The business wants to assist brands in integrating NFTs into their existing membership and loyalty programmes and transferring them to the blockchain.
CBW - External Analyst