Global coffee store franchise giant Starbucks will soon launch a new Web3 rewards program to attract and retain customers, according to its interim CEO Howard Schultz.
interim CEO Howard Schultz said, “This will create an entirely new set of digital network effects that will attract new customers and be accretive to existing customers in our core retail stores.”
While speaking in the firm’s fiscal Q3 earnings call on Tuesday, Schultz declared that Starbucks will soon reveal a new Web3 “digital initiative” that will inflate upon the company’s loyalty program:
“This new digital Web 3-enabled initiative will allow us to build on the current Starbucks Rewards engagement model with its powerful spend-to-earn Stars approach while also introducing new methods of emotionally engaging customers.”
Though the CEO kept his cards close to his chest, he briefly stated during the call that the firm is looking at “integrating our digital Starbucks Rewards ecosystem with Starbucks-branded digital collectibles as both a reward and a community building element.” The full reveal will happen during Starbucks’ Investor Day on Sept. 13.
“This will create an entirely new set of digital network effects that will attract new customers and be accretive to existing customers in our core retail stores,” he claimed.
The company’s quarterly results reportedly beat analyst forecasts, with a 9% quarter-over-quarter bump in global revenue to a record $8.2 billion.
Schultz also said during the call, that the Web3 move is part of a push to attract and retain the younger side of Starbucks’ customer base.
Starbucks primarily declared plans to jump on the nonfungible token (NFT) bandwagon back in April, as Schultz distinguished that “sometime before the end of the calendar year, we are going to be in the NFT business.”
Starbucks is possibly not the major brand to launch a Web3 loyalty program in the near future.
Last month business-to-business blockchain startup Hang raised $16 million in Series A funding led by Paradigm and trying to help brands transition their current membership and loyalty programs over to the blockchain and incorporate NFTs.
The firm is reported to have beer manufacturer Budweiser, sports media outlet Bleacher Report and popular music festival groups Bonnaroo and Superfly as some of its early clients.
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