Global coffee franchise giant Starbucks wants to launch a new Web3 rewards program to attract and retain customers, according to its interim CEO Howard Schultz.
Speaking during the company’s third-quarter earnings conference call on Tuesday, Schultz famous that Starbucks will soon unveil a new Web3 “digital initiative” that will expand on the company’s loyalty program:
“This new digital Web 3-enabled initiative will allow us to leverage our current Starbucks Rewards loyalty model with our powerful Stars-for-earn Stars approach, while introducing new methods of emotional customer engagement.”
The CEO kept his cards close to his chest, but briefly mentioned during the call that the company is looking at “integrating our Starbucks Rewards digital ecosystem with Starbucks-branded digital collectibles as a reward and as a community-building element.” . Full disclosure is set at happen during the Starbucks Investor Day on September 13.
“This will create a whole new set of digital network effects that will attract new customers and attract existing customers to our core retail stores,” he said.
— Jay (@BitBoyJay) August 4, 2022
According to information, the company’s quarterly results Rhythm analysts estimate, with a 9% quarter-over-quarter increase in worldwide revenue to $8.2 billion.
During the call, Schultz also said the Web3 move is part of a push to attract and retain the younger side of Starbucks’ customer base.
“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,” he said, adding that the company “has never, in our history, been more relevant than us. today in Gen Z.”
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Starbucks first announced plans to jump on the nonfungible token (NFT) bandwagon in April, as Schultz noted that “sometime before the end of the calendar year, we’ll be in the NFT business.”
Related: Canadian taco franchise uses NFT for customer loyalty program
Starbucks may not be the only big 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. The company is looking to help brands migrate their current membership and loyalty programs to the blockchain and integrate NFTs.
The company is reported to have beer maker Budweiser, sports media outlet Bleacher Report and popular music festivals Bonnaroo and Superfly as some of its early clients.