Starbucks Introduces Web3 Rewards Program to Attract New Customers

Starbucks is looking to launch a new Web3 rewards program to attract and retain customers, according to interim CEO Howard Schultz.

Speaking during the firm's fiscal Q3 earnings call on Tuesday, Schultz stated that Starbucks will soon unveil a new Web3 "digital initiative" that will expand the company's loyalty program: "This new Web 3-powered digital initiative will enable us to enhance the existing Starbucks Rewards engagement model with a powerful Spend-Win Stars approach, while also introducing new ways to engage customers emotionally." The CEO kept his cards close to his chest, but briefly mentioned during the call that the company is considering "integrating our digital Starbucks Rewards ecosystem with Starbucks-branded digital collectibles, both as a reward and as a community-building element." The full announcement will be made at Starbucks' Investor Day on September 13. "This will create an entirely new set of digital network effects that will attract new customers and add to existing customers in our core retail stores," he said. The company's quarterly results reportedly beat analyst estimates, with global revenue up 9% from the previous quarter to $8.2 billion. During the call, Schultz also said the Web3 move was part of Starbucks' effort to attract and retain the younger side of its customer base. "We don't want to be in a business where our customer base is aging and we're in a situation where we're less relevant to younger people," Schultz said, adding that the company has "never in our history been as relevant to Gen Z as we are today." The company first announced plans to join the nonfungible token (NFT) bandwagon in April, with Schultz saying "we will be in the NFT business sometime before the end of the calendar year."