Starbucks announced that it will use blockchain technology to build a digital community and give its customers access to exclusive benefits. On Tuesday, the news was released as part of the company’s quarterly earnings report (3-05-2022).
Known as NFTs, non-fungible tokens are a new type of cryptographic token that allows anyone to claim exclusive ownership of digital assets such as artwork, recordings, and images. They have the ability to update loyalty programs, according to the coffee company, and these digital assets offer appealing use cases apart from being traded “in a highly speculative fashion.”
Starbucks is getting creative with NFTs
Starbucks’ NFTs are probably geared toward the 27 million Americans who are currently members of its Rewards program. Also, the company is looking for “exciting ways to bring communities and experiences to life online.”
It claims to have a “treasure trove” of content for this new environment, including a “deep tradition” of coffee art and creative shop designs. It will permit unique digital collections while also providing its owners with exclusive content encounters and other perks.
Initially, the Web3 experience that the business plans to offer will focus on coffee. According to Starbucks “world-class collaborations with other innovators and like-minded brands” may expand into art, music, and literature in the future.
Officials from Starbucks informed the following the company’s investors. He said that emerging web3 technologies, particularly NFTs, now enable this ambition and allow us to extend and express who Starbucks has always been at its core.
“We’re establishing a digital space and naming it as third place.” To do so, we’ll expand our definition of what it means to be a member of the Starbucks community, incorporating new notions like possession and community-based engagement models that we’re seeing emerge in the web3 area,” he said.
The firm stated that it will expand up to its NFT community on an “environmentally sustainable” web3 platform, which would be more in line with its current sustainability objectives. However, the business did not specify what type of blockchain technology will be used in their NFT collections, just that it would most likely be “multi-chain” or “chain agnostic.”
“Later this year, we hope to launch our first NFT collection, membership, and community focused on coffee art and narrative.” It will have a slew of unique experiences and rewards befitting of a Starbucks genesis NFT collection,” according to the article. The company intends to say this is a great initiative.
While some companies jump into NFTs without giving much thought to how the technology will fit into their overall business strategy, Starbucks appears to be taking a different approach.