Global coffee shop franchise giant Starbucks is looking to launch a new Web3 rewards program to attract and retain customers, according to its interim CEO Howard Schultz.
Speaking period During the company’s third-quarter earnings call on Aug. 2, Schultz noted that Starbucks will soon announce a new Web3 “digital initiative” that will expand the company’s loyalty program:
“This new initiative to support digital Web 3 will allow us to build on the current Starbucks rewards engagement model, leveraging its powerful spend earning Stars method, while introducing new ways to emotionally engage customers.”
The CEO kept his business card on his chest, but briefly mentioned on the call that the company was considering “combining our digital Starbucks rewards ecosystem with Starbucks-branded digital collectibles as rewards and community building. element.” Complete reveal Scheduled to take place during Starbucks Investor Day on September 13.
“This will create a whole new set of digital network effects that will attract new customers and increase existing customers in our core retail stores,” he said.
— Jay (@BitBoyJay) August 4, 2022
According to reports, the company’s quarterly results beat Analysts estimate that global revenue rose 9% sequentially to a record $8.2 billion.
During the call, Schultz also said that Web3’s move was aimed at attracting and retaining the younger side of Starbucks’ customer base.
“We don’t want to be in a business with an aging customer base and less relevance to younger people,” he said, adding that the company “has never been more important to Gen Z today in our history.”
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Starbucks initially announced its plans to jump on the NFT bandwagon in April, and as Schultz noted, “sometime before the end of the calendar year, we’ll be in the NFT business.”
related: Canadian taco franchise uses NFTs for customer loyalty program
Starbucks may not be the only major brand launching a Web3 loyalty program in the near future.
Last month, B2B blockchain startup Hang raised $16 million in a series A round led by Paradigm.The company is look at Help brands move their current membership and loyalty programs to blockchain and integrate NFTs.
Early clients of the company reportedly include brewer Budweiser, sports media Bleacher Report and pop music festival groups Bonnaroo and Superfly.