Starbucks just teased Web3 updates to its rewards program
Starbucks announced it is planning some changes to its popular rewards program during a third-quarter earnings call on Tuesday.
‘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,’ Schultz said during the call.
The ‘new Web 3 enabled initiative’ will help Starbucks find new ways to engage with customers and expand the ‘digital third place community,’ he added. The digital third place community approach refers to a community space between home and work.
As part of the initiative, new rewards that can be redeemed with stars will be introduced such as exclusive, one-of-a-kind experiences and Starbucks-branded digital collectibles.
On the other hand, Schultz mentioned the importance of catering to the younger generation of consumers by ‘staying relevant to younger people’, adding that Starbucks “has never been more relevant in our history than we are.” Today is for Gen Z.’
‘To me, that group is so powerful, and the attachment rate that we have and the loyalty is just building up,’ he explained.
Starbucks plans to unveil the new digital initiative during its 2022 Investor Day in Seattle on September 13, 2022.
The coffee company first experimented with blockchain technology in 2018, when it launched its ‘bean-to-cup’ traceability to log data and share real-time information during the coffee beans production cycle and support farmers by connecting them to coffee drinkers.
Today, Starbucks boasts one of the most popular rewards programs in the fast food industry. With a total of 27.4 million members as of the end of the quarter and a year-over-year increase of 13%. Rewards members were responsible for over half of Starbucks' sales last quarter.
The company also reported a revenue of US$ 8.15 billion and adjusted earnings per share of 84 cents.