Starbucks to Unveil Web3-Based Rewards Program
Starbucks will unveil its web3 initiative, which includes coffee-themed NFTs, at next month’s Investor Day event. The company earlier this year announced plans to enter the web3 space, noting its NFTs wouldn’t just serve as digital collectibles, but would provide their owners with access to exclusive content and other perks. At the time, Starbucks provided little detail as to what its debut set of NFTs would look like, specific features it would provide, or even what blockchain it was building on. Overall, the coffee retailer believes digital collectibles could create an accretive business.
Total Retail's Take: Like many other retailers and brands, Starbucks is experimenting with how web3 fits into its future plans. The growth of web3 will likely be a slow build, considering that as of six months ago more than half of consumers (54 percent) had never even heard of the term "web3," let alone what it entails. As such, Starbucks is willing to be an early adopter of web3, likely believing the overwhelming success of its mobile app will lead customers to trust engaging with the retailer in this new channel. Furthermore, by integrating NFTs with the company's loyalty program, Starbucks is incentivizing consistent usage of web3. While other retailers and brands watch from the sidelines, Starbucks is committing to NFTs and web3. Whether that's the right decision remains to be seen.