Starbucks will launch a web3-based rewards program in the next month 2022
Starbucks will unveil its web3 project, which includes coffee-themed NFTs, at the "investor day" event next month in Seattle on September 13, 2022.
Starbucks, according to CEO Howard Schultz, has ambitious intentions to enter Web3.
According to the CEO of the well-known coffee business, Web3 will play an essential part in the future of the Starbucks rewards program.
The corporation has kept a very low level of web3 news, just stating that it believes digital collectibles may build a backlog that adapts to its stores and that additional information would be published later in 2022.
Starbucks will launch its web3-based rewards program next month
Earlier this year, the business revealed its ambitions to join the web3 area, emphasizing that its NFTs will not only act as digital holdings but will also provide its owners access to a variety of benefits.
Starbucks was hiding information at the time about what its initial set
of NFTs would look like, what precise features they would offer, and even
what blockchain they were building on.
She stated that the idea is likely to be multi-chained, implying that Starbucks is attempting to take a different approach. Unlike other firms who hopped on the NFT bandwagon without giving much attention to how their investments fit into their overall corporate ambitions.
"We have been working on a very exciting new digital initiative that builds on our existing industry-leading digital platform in innovative new ways all centered around coffee and most importantly, loyalty, that we will reveal at Investor Day," Schultz added.
"We believe this new digital initiative that supports Web 3 will allow us to build on Starbucks' existing sharing model by offering new ways to engage customers emotionally, expand our third-place digital community, and offer a wider range of rewards, including unique experiences you can't get anywhere else," Schultz continued.
Although the specifics have yet to be revealed, users now earn stars through in-app or Starbucks purchases, which can subsequently be converted into actual benefits like free drinks.
It appears that the new NFTs will be included in this loyalty scheme in some way.
Customers who "win" collectibles via everyday purchases may be more likely to join the web3 ecosystem.
In terms of technical innovation, one of Starbucks' biggest successes has been ordering and mobile payment.
As a special consultant on the project, the business hired Adam Brotman, a mobile order, payment system engineer, and Starbucks app developer.
Even before Apple Pay became popular, the corporation was one of the first to promote the notion of a digital wallet. Starbucks' mobile demand has surged as mobile payment acceptance has expanded more generally.
According to the firm, mobile orders, delivery, and driving combined for 72 percent of Starbucks' sales in the United States last quarter, the third quarter of its fiscal year.
During the earnings call, Schultz underlined the need of connecting to the younger customer, citing Generation Z's demand for Starbucks' cool beverages and vibrating iced espresso as a reason for the quarter's sales gain.
"We don’t want to be in a business where our customer base is aging and we have a less relevant situation with younger people," Schultz said, adding that the firm "never been, in our history, more relevant than we are today to Gen Z."
"This segment is really powerful for me," he noted, suggesting that the web3-based loyalty program might serve as another avenue to draw younger people to the business.
Starbucks will extend its "digital third-place community" with this project, according to Schultz. The third place is a sociological concept that refers to the social space that exists between home and work. Moving to Web3 also allows Starbucks to provide a broader selection of rewards to customers.
These prizes include "unique experiences" and Starbucks memorabilia with both a monetary value and a community component. "This generates an entirely new set of digital network effects that attract new clients," Schultz explained.
Some people are not proud
Starbucks' new partnership with Web3 has not been met with universal approval. There appears to be significant doubt regarding the company's intention to collaborate with NFTs, particularly among its workers. During a May presentation that included a portion regarding NFTs, an employee who identified himself as a technician raised reservations about the company's ambitions.
"Blockchain technology, whether based on proof of stake or proof of work, is not good for the environment. It will damage the earth, and as a technician, I am concerned that this firm is heading in this way. I don't want to have that attitude about Starbucks "said a corporate employee.
However, Starbucks appears to be unconcerned with the employee's emotional appeal and is on high alert in terms of Web3 uptake.