Image source: NFT News Pro
According to CEO Howard Schultz, Starbucks will make some changes to its rewards program, one of the company’s most innovative ways to build customer loyalty.
Howard Schultz recently announced that Web3 would become an integral part of the company.
“We have been working on a very exciting new digital initiative that builds on our existing industry-leading digital platform in innovative new ways,” said Schultz.
“All centered around coffee and – most importantly – loyalty.”
The disclosure came Tuesday during Starbucks’ third quarter 2022 earnings call.
Previous reward experience
The plans may not be too much for Starbucks Rewards members to talk about the program and possible changes.
The latest major changes to the program were made in 2019, encouraging customers to voice their complaints on social media.
The change means Starbucks will change its star rating for free food and drinks.
Since then, the rewards program has attracted more than 10 million members – the changes affect several people.
Providing a unique experience
According to Schultz, Starbucks will unveil the new digital initiative on September 13 during the annual Seattle Investor Day.
The initiative allows Starbucks to build on its current rewards program
Additionally, this insightful model introduces new ways to emotionally engage customers by broadening the third-party digital community approach and offering a wider range of rewards.
Schultz shared that the rewards will include unique experiences and digital collectibles as reward and community structure elements.
“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 explained.
Employees aren’t very optimistic about the coffee company’s relationship with Web3 initiatives.
During a presentation on NFTS in May, an employee named Mark spoke out against the NFT’s environmental impact plan.
“Blockchain, whether it’s proof of stake or proof of work, is not planet positive,” he said.
“It is going to destroy the planet… and it makes me, as a technologist, and I’m not the only one, very worried about that – that this company would go in that direction.”
“I don’t want to feel this way about Starbucks.”
Mark also pointed out that while NFTs are advertised as inclusive for humans, they are more exclusive.
Starbucks and Blockchain
This won’t be the first time Starbucks has dived into the blockchain scene, as they launched a bean-to-cup traceability project four years ago.
The project aims to support small farmers.
Whether customers, employees and investors will embrace the Web3 initiative remains to be seen, but Howard Schultz has implemented it as part of a larger planned transformation for Starbucks.
“We are looking forward to fully showcasing the power and the opportunity of our reinvention plan,” he said.