Starbucks will unveil its initiative, which includes coffee-themed NFTs, at its Investor Day event next month. Earlier this year, the company announced its plans to enter the web3 space. At the time, Starbucks shed light on the details of the features of the first NFT set. Starbucks has announced that it believes its web3 digital collections can create an increased business environment in its stores, with more to come in 2022.
@Starbucks will reveal its #Web3 project next month, which includes coffee-themed NFTs. The company announced aspirations to enter the web3 industry earlier this year, stating that #NFTs would provide owners with exclusive content and other incentives.
While some companies are jumping on the NFT majority without giving it much thought, Starbucks seems to be trying a different approach. Starbucks sees its collectibles as an extension of customer loyalty. The company brought in Adam Brotman to help serve as a special consultant on the project. Mobile Ordering and Payment has been one of Starbucks’ greatest achievements in technology innovation.
As broader mobile payment adoption has grown, so has Starbucks mobile ordering. Last quarter – accounted for 72% of Starbucks’ US revenue in Starbucks’ third fiscal quarter. In addition, the company said its mobile order sales mix rose 13% year-on-year to a record 47% following COVID-induced changes in consumer behavior. Starbucks founder and now interim CEO Howard Schultz, spoke with investors about the upcoming web3 startup during this week’s earnings call.
“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 said.
The company previously announced that it plans to hold its 2022 Investor Day on September 13, 2022 in Seattle.
Schultz continued, “we believe this new digital web3-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, expanding our digital third place community, and offering a broader set of rewards, including one-of-a-kind experiences that you can’t get anywhere else, integrating our digital Starbucks Rewards ecosystem with Starbucks-branded digital collectibles as both a reward and a community building element.
“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 added.
While the details are yet to be fully revealed, the approach here sounds interesting as its potential. The company had not previously disclosed that the NFTs would be directly linked to Starbucks Rewards. Customers currently earn Stars, which can be turned into tangible rewards like free drinks by shopping. If customers were to “earn” collections through daily purchases, perhaps this would potentially include more people in the web3 ecosystem. This is one of the challenges facing the field today, as digital art and collectibles purchases often create high costs. What’s more, the digital program can give customers a reason to care about NFTs if the rewards and so-called “one-of-a-kind” experiences are truly worth earning.
For example, crypto rewards app Sweatcoin has become a groundbreaking success, rewarding users with “Sweatcoins” for every 1,000 steps they walk. . There are also a handful of games that offer win-by-play models that aim to connect a fun activity like gaming to cryptocurrencies or NFTs. A web3-based loyalty program could serve as another way to attract younger consumers to the brand.
“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, before touting that the company has “never been, in our history, more relevant than we are today to Gen Z.”
“To me, that cohort is so powerful, and the attachment rate that we have with them and the loyalty is just building,” he added.
Starbucks has made strong earnings despite economic difficulties. The company reported revenue of $8.15 billion versus expected $8.11, adjusted earnings per share of 84 cents versus expected 75 cents.