What’s brewing?
The biggest coffee chain in the world is stepping into the web3 space. Starbucks will unviel its web3 initative, inclusive of coffee-themed NFTs during their Investors Day event next month.
Earlier this year, the company announced its plans to enter the web3 space with their NFTs not only serving as digital collectables but provides owners with exclusive access to perks and content.
“Emerging technologies associated with Web3, and specifically NFTs, now enable this aspiration and allow us to extend who Starbucks has always been at our core,” Starbucks Chief Marketing Officer Brady Brewer said.
While large corperations are jumping onto the NFT bandwagon, Starbuck’s approach is skewed towards usitlizing NFTs as an extension of customer loyalty programmes. They are even building this on an “environmental sustainable” web3 platform.
The current customers of starucks earn Stars with purchases of drinks online or in physical stores, which can be exchanged for rewards – free drinks. What better way to enhance their already rhobust rewards system by incorperating NFTs.
Starbucks earnings beat Wall Street Estimates. Their better than expected results reported a revenue of $8.15 billion versus $8.11 expected, and earnings per share of 84 cents adjusted versus 75 cents expected.
This revenue was mainly driven by their large Gen-Z demand for their cold brew and espresso, the web3 based loyalty program could server 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,” said by interim CEO, Howard Schultz.
Though the details aren’t yet make public yet, the approach sounds enticing and potentially a game changer, especially when everyone in the space is looking for areas in crypto with real life value accural.
When this comes into fruition, I believe this is one avenue in bringing people to “care about NFTs”. The product offerings within web3 suddenly becomes a sensible choice, probably the right one for the expansion of the company in the coming years.
What it means for crypto?
What the space needs is execution, and theres no other better use case than what Starbucks can offer. The perfect targeted demographic, the perfect existing loyalty programme to tap on, what they now need is a perfect plan.
Adoption news are always positive contributors to the web3 space but it come with an tall order in execution. With so much going on in crypto, often times the news will fizzle away. And we can’t blame them, the web3 space is still a new one and even these large web2 companies are still finding their footing.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief
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