The rise of non-fungible tokens has been steadily increasing over the last year. Brands are frequently tying them to digital perks, merchandise, and exclusive experiences for their customers who want more out there in terms of what they can get with just an online purchase.
The company has announced that it will be launching a new loyalty program this September. The update is meant to attract more customers and offer them free drinks or merchandise as well if their account progresses enough levels within the chain's existing rewards system.
"With its powerful spend-to-earn stars approach, this new digital web3-enabled initiative will enable us to expand on the current Starbucks Rewards engagement strategy while also bringing in new methods of emotionally engaging with customers, broadening our digital third place community, and providing a broader set of rewards," Starbucks interim CEO Howard Schultz said during the call.
The announcement of this new program has created waves within the marketing industry. Starbucks' loyalty card is an extremely successful part of its business, with over half its sales coming from customers who participate in rewards programs - it could be stepping into a more virtual world and blockchain-based future by tying these two things together.
"NFTs could make logical sense for loyalty programs as another way to interact with customers," said Pedro Rodriguez, Horizon Media's senior vice president of transformation and growth and head of its Chapter and Verse division. "With the depreciation of cookies, access to the first data in other ways will be critical."
Last December, Applebee’s launched an exciting new promotion that is centered around digital images. For one year of purchases at the chain, you unlock all future ones with your unique code from this special item. Taco Bell and Domino’s may be considering ways to tie NFTs into their loyalty programs, though so far, they have used promotions for generating donations.
Heavy betting on NFTs could be an effective marketing strategy for businesses because it helps market their product or service, attracting younger consumers who are not yet part of Starbucks' rewards program. If this idea proves successful, other marketers looking at engaging Gen Z should consider following suit using similar tactics.
Brands could rid themselves of costly balance-sheet liabilities by liquidating goods in an effort to satisfy consumer demand.
It is hard to know what the future holds for Starbucks. In a recent survey by Forrester, only 72% of consumers had never heard of an NFT and had no interest in purchasing or owning one.
The brave new world of technology is one in which brands must always be on and available. As such, they run the risk of being left behind by their competitors who are faster than them when it comes down to adopting new platforms or incorporating trends into products early on before others do so as well - even though consumer comfort may come slower due primarily because people don't know what's coming next!