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{"id":15848,"date":"2023-01-20T22:23:30","date_gmt":"2023-01-20T22:23:30","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/01\/20\/starbucks-to-unveil-its-web3-based-rewards-program-next-month\/"},"modified":"2023-01-20T22:23:31","modified_gmt":"2023-01-20T22:23:31","slug":"starbucks-to-unveil-its-web3-based-rewards-program-next-month","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/01\/20\/starbucks-to-unveil-its-web3-based-rewards-program-next-month\/","title":{"rendered":"Starbucks to unveil its web3-based rewards program next month"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2022\/08\/03\/starbucks-to-unveil-its-web3-based-rewards-program-next-month\/<\/a><\/br>
\nStarbucks to unveil its web3-based rewards program next month<\/br>
\n2023-01-20 22:23:30<\/br><\/p>\n

\n

Starbucks will unveil its web3 initiative, which includes coffee-themed NFTs, at next month\u2019s Investor Day event. The company earlier this year announced its plans to enter the web3 space<\/a>, noting its NFTs wouldn\u2019t just serve as digital collectibles, but would provide their owners with access to exclusive content and other perks.<\/p>\n

At the time, Starbucks was light on details as to what its debut set of NFTs would look like, specific features they\u2019d provide or even what blockchain it was building on. It said the plan was likely to be multichain or chain-agnostic, hinting at plans that weren\u2019t yet finalized.<\/p>\n

Overall, the coffee retailer kept its web3 news fairly high level, explaining simply that it believed digital collectibles could create an accretive business adjust to its stores and that more would be revealed later in 2022.<\/p>\n

While some companies jumped on the NFT bandwagon without much thought as to how their investments would fit in with their larger business goals, Starbucks seems to be attempting a different approach. It sees the collectibles as an extension of customer loyalty. The company brought in Adam Brotman, the architect of its Mobile Order & Pay system and the Starbucks app, to help serve as a special advisor on the project.<\/p>\n

Mobile Order & Pay has been one of Starbucks\u2019 biggest successes, in terms of tech innovations. The company was one of the first to introduce the concept of a digital wallet, even before Apple Pay became ubiquitous. And as broader mobile payment adoption has grown, Starbucks mobile ordering has, too. In the past quarter \u2014 Starbucks\u2019 fiscal Q3 \u2014 mobile orders, delivery and drive-through combined drove 72% of Starbucks\u2019 U.S. revenue. In addition, the mobile ordering sales mix grew to a record high of 47%, up 13% year-over-year, following COVID-driven changes in consumer behavior, the company said.<\/p>\n

Starbucks founder and now\u00a0interim CEO<\/a> Howard Schultz, who returned to the company in April, teased its forthcoming web3 initiative during this week\u2019s earnings call with investors.<\/p>\n

\u201cWe 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,\u201d Schultz said.<\/p>\n

The company had previously announced its plans<\/a> to host its 2022 Investor Day in Seattle on September 13, 2022.<\/p>\n

Schultz continued, \u201cwe 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\u2019t get anywhere else, integrating our digital Starbucks Rewards ecosystem with Starbucks-branded digital collectibles as both a reward and a community building element.<\/p>\n

\u201cThis 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,\u201d he added.<\/p>\n

Though the details aren\u2019t yet fleshed out, the approach here sounds potentially interesting \u2014 at least compared with some other corporate NFT projects (an admittedly low bar). The company hadn\u2019t before clarified that the NFTs would be tied directly to Starbucks Rewards.<\/p>\n

Currently, customers earn Stars with purchases in the app or at Starbucks stores<\/a>, which can then translate into tangible rewards \u2014 like free drinks. It appears that the new NFTs will now be incorporated into part of this loyalty program, somehow. If customers were to \u201cearn\u201d the collectibles through everyday purchases, perhaps, that could potentially onboard more people to the web3 ecosystem. This is one of the challenges the space faces today, where purchases of digital art and collectibles often come at high costs and with sizable fees. What\u2019s more, the digital program could give customers a reason to care about NFTs, if the rewards and so-called \u201cone-of-a-kind\u201d experiences ended up being something actually worth earning. (Of course, that remains to be seen.)<\/p>\n

There is some indication that consumers are interested in easier ways to enter the web3 space, however. For example, the crypto rewards app Sweatcoin has become a breakout hit thanks to how it rewards users with \u201cSweatcoins\u201d for every 1,000 steps they walk. The app this past quarter was No. 4 by global downloads and No. 6 by monthly active users on data.ai\u2019s list of \u201cTop Breakout Apps\u201d<\/a> \u2014 meaning, those that saw the largest absolute growth in downloads in the quarter. There\u2019s also now a good handful of games offering play-to-earn models<\/a>, which aim to tie a fun activity like gaming to cryptocurrencies or NFTs. These have seen more mixed success as some gamers are opposed to the idea.<\/p>\n

During the call, Schultz also stressed the value of catering to the younger consumer. Though his comments were more of a reflection of Gen Z\u2019s demand for Starbucks\u2019 cold drinks and iced shaken espresso \u2014 which drove sales in the quarter \u2014 a web3-based loyalty program could serve as another way to attract younger consumers to the brand.<\/p>\n

\u201cWe don\u2019t want to be in a business where our customer base is aging and we have a less relevant situation with younger people,\u201d Schultz said, before touting that the company has \u201cnever been, in our history, more relevant than we are today to Gen Z.\u201d<\/p>\n

\u201cTo me, that cohort is so powerful, and the attachment rate that we have with them and the loyalty is just building,\u201d he added.<\/p>\n

Starbucks posted strong earnings in the quarter<\/a>, beating Wall Street\u2019s expectations despite the economic challenges. The company reported revenue of $8.15 billion versus $8.11 expected, and earnings per share of 84 cents adjusted versus 75 cents expected.<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Tech, Technology<\/br>
\n<\/br>
\nSource:
https:\/\/techcrunch.com\/2022\/08\/03\/starbucks-to-unveil-its-web3-based-rewards-program-next-month\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2022\/08\/03\/starbucks-to-unveil-its-web3-based-rewards-program-next-month\/ Starbucks to unveil its web3-based rewards program next month 2023-01-20 22:23:30 Starbucks will unveil its web3 initiative, which includes coffee-themed NFTs, at next month\u2019s Investor Day event. The company earlier this year announced its plans to enter the web3 space, noting its NFTs wouldn\u2019t just serve as digital collectibles, but would provide their owners […]<\/p>\n","protected":false},"author":1,"featured_media":15849,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17,8],"tags":[],"class_list":["post-15848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","category-technology"],"yoast_head":"\nStarbucks to unveil its web3-based rewards program next month - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2023\/01\/20\/starbucks-to-unveil-its-web3-based-rewards-program-next-month\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Starbucks to unveil its web3-based rewards program next month - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source:https:\/\/techcrunch.com\/2022\/08\/03\/starbucks-to-unveil-its-web3-based-rewards-program-next-month\/ Starbucks to unveil its web3-based rewards program next month 2023-01-20 22:23:30 Starbucks will unveil its web3 initiative, which includes coffee-themed NFTs, at next month\u2019s Investor Day event. 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