Salesforce, Inc. (CRM) Earnings Call Transcript & Summary

Hello, and good morning, everyone. I hope all of you can hear me, and I hope all of you are doing well. I'm really glad to be hosting this session with you for the next 1 hour today. I have along with me, Deepa Krishnan, who leads marketing for Tata Starbucks India. She and I will be having a chat a little later on in this webinar. And before that, I will be presenting to you the findings of Salesforce's state of marketing report. And of course, I will tell you a little bit more about the methodology that we followed in -- coming up with this report. This is the 8th edition of this report. So we've been doing this for 8 years and running. And there are definitely a lot of great insights and trends that we have unearthed by talking to over 6,000 marketers from across the world, including India. And we've also learnt and leaned a lot of insights from the marketing communications that our customers use in reaching out to their end consumers over the last year or so. So there's a lot to unpack in this webinar. And therefore, I would again extend all of you a warm welcome. I really want to thank you for being here and spending this 1 hour with us. And as you can see on the screen, there is a Q&A window. Please feel free to post your questions. We will definitely allocate some time towards the end of this webinar to answer as many questions as we can. And of course, we'll consolidate those questions. And in case we run out of time, we'll be more than happy to connect with you offline and discuss with you further your queries and asks. So without further ado, let me dive into the presentation. As always, I just want to begin with the safe harbor statement. Just to remind everybody that if you are making purchasing decisions about Salesforce, please ensure that you are making those decisions based on generally available release capabilities and functionality that is commercially available. Thank you. Now as I was mentioning a little while ago, this is the 8th edition of the state of marketing report that we are releasing worldwide. And this slide just quickly talks about the criteria that we've used, the industries that we've covered, you can look at the demographics. So we've tried to make this as diverse as possible, and we've obviously tried to make the sample set as big as we can so that it really gives you a very holistic perspective of the way the marketing function is evolving and the way it is shaping up as we see through the lens of our customers. I won't go into a lot of the details on this slide, but you can clearly see that a great amount of a number of industries have been covered, companies big and small, are there in the mix, different business models, B2C, B2B. As you can all appreciate, there are different flavors of marketing that one needs to look into if you're a B2B company versus a B2C. We've talked to stakeholders across the entire organization hierarchy. And almost 35 countries around the world were covered in the survey. So we think this is a good sort of a data set for us to start looking at what insights can be derived and what kind of takeaways are there for us, marketers in the field. Now the first and foremost, that we see here is, there is a lot of change in the post-COVID world. And therefore, marketers are really focused on driving value, right, and I think this is probably not really anything new, but we do see a lot of emphasis on making sure that their -- marketers are even more convinced today than they have ever been before, that the work that they put in delivers a lot more value than what it did even probably a year ago. And when you look at the chart on the right-hand side, they're investing in lots of different areas, investing in their own marketing teams, which are now distributed how do they collaborate a lot more effectively. They're looking at targeting newer customer segments to realize growth. There is a lot of investment in digital-first technologies and experiences. We all live in pretty much a digital world. There is a concept of the hybrid workplace coming back into the picture. But when you look at how consumers interact with brands, a lot of that is moving to digital platforms. And therefore, marketers are responding to that. And you'll see a lot of other investments as well, but these were the top 3 that I just wanted to point out just to set the stage. Now as a summary, what we see is that marketers everywhere globally, and this is quite consistent in the data that we've seen around the world is that marketers are faced with new priorities as well as challenges on the other hand as well. Now in response to that, marketing -- marketers are investing in newer channels -- because at the end of the day, marketers are really led by evolving consumer trends, so to speak. And therefore, in order to engage with those customers, they have to invest in new channels, and that's something that we are seeing very clearly across the board. And the third big topic that we hear from marketers every single day, is that while there is an expectation from consumers to deliver highly personalized experiences, consumers want to be recognized as an individual and not just as a number or somebody who holds a loyalty ID card. But do you recognize me as an individual who has unique preferences. But the challenge in order to deliver that kind of hyper-personalization is that I need to know a lot more about the consumer. And therefore, I seek a lot of information. And unless and until I'm going to make that value exchange very clear, consumers are very hesitant to part with their information. So there is a fine line and there is -- this is really a tight rope on a balancing act that marketers have to really juggle with. And we'll see a little more of this later on in the presentation. There are also tactical changes coming up in the world of third-party cookies. Third-party cookies are going to be deprecated in probably in a year's time. It is already long overdue and delayed. And we definitely see marketers noticing this and wanting to have a real strategy around how are they going to do this without the convenience of having third-party cookies. To round out the summary, it's always about being data-driven. There is mountains of data that is available, which is good, but it is also about focusing on the real metrics, the KPIs that make a difference to their organizations and to their consumers. And keeping that as a north star is becoming ever more important. And last but not the least is that we've clearly seen that marketers who lead with values are seeing better results, and they are really outperforming those that do not make their values transparent and those values that are not aligned with their consumer segments are companies that are sort of already lagging behind. So that's a quick summary of what we found. So let's dig in and go deeper. The priorities and challenges is an interesting one. We see marketers investing in a lot of new technologies and tools. They're also experimenting with a lot of strategies as we saw earlier. So this is really a big focus, but what you also see very interestingly on the right-hand side is that just simply investing in tools and technologies in itself is not going to give you the results that you expect. Effective use of those technologies is the second step, and we see many organizations struggling with that. They have a plethora of tools and sometimes they don't necessarily talk to each other. And therefore, making sense of this very diverse marketing or Martek landscape is becoming an increasingly bigger problem for a lot of organizations. And the second point I wanted to highlight in terms of the challenges is that every organization, I think, is now looking at becoming a lot more efficient, reducing costs, doing more with less. Marketers are increasingly being questioned about the value that they are bringing back from the marketing investments and therefore, return on investment at the attribution of where those marketing dollars are being spent and what return am I getting in exchange for that is becoming a very important question. I talked about how marketers continue to be faced with the challenge of balancing personalization and privacy earlier on. And that directly leads to -- if I'm asking for some information from consumers, I need to be able to establish trust and credibility. And I need to make it very transparent to those consumers, how I intend to use that data to benefit those very consumers who are actually giving me that information. And therefore, leading with values and things like that are becoming absolutely important. Now let's look at some of the new channels that have emerged, especially on the digital platform, television and OTT has become really a big driver in terms of where consumers are spending a lot of their time and the marketers are responding to that. They are spending a lot of money on these channels. And a close second to that is to spend a lot of money on creating digital content. Many companies that I talk to have a very clear content-led strategy to attract customers and to entice them and to establish stickiness when they visit their digital properties such as mobile apps and social media platforms and whatnot. And the other thing, which is closely related is video, right? You again see lots of formats of video, you see pre-produced video, we see live streaming, especially in the world of e-commerce, live streaming of video or live shopping is becoming an increasingly popular trend across the world. There are lots of platforms even in India that we see emerging in this area. So there's lots going on in terms of where marketers are fine-tuning or redefining their tactics to engage with their customers better. Now with respect to personalization and privacy, what you see is, of course, the number of data sources have really burgeoned, right? And if you see on the left-hand side, on an average, we see almost 18 different sources of data that an enterprise can tap into. That number is slightly lesser for India, as you'll see in a later on chart. But nevertheless, the number of data sources have really gone up. And that can be both a good thing and a bad thing, right? I mean if you really want to deliver hyperpersonalized experiences, you need the power of data and the data is available. But the problem or the challenge on the flip side is that making sense of the data. The data doesn't necessarily exist in a nice format that is instantly consumable, especially for marketers and business users. These silos of data exist in various parts of the organization. And sometimes you have to go outside the 4 walls of your organization to get that data. And therefore, unifying that data, harmonizing the data and preparing the data to be in a form where intimately you can segment it and execute relevant marketing campaigns is also a challenge that marketers are faced with. And how much of data can you ask of consumers? And are you really making it transparent to those consumers? How you intend to use that data for their own benefit is something that many companies have done a good job. But I think there is a lot more work to be done in that area. Just moving on to the next challenge or rather a big trend or a topic that we see with many marketers is the move towards the deprecation of third-party cookies. Cookies, as you know, is something that many organizations rely on. When you come to my website, I have the ability to drop a third-party cookie on the browser. And then I use that information to continue to keep track of you as you navigate through the web to various other third-party websites and so on and so forth. And that ability is something that is going to be taken away in probably less than a year's time. And therefore, marketers need to be in compliance with the new rules. They need to abide by the regulations that are being put in place. And therefore, they need to start working on strategies to address this future. And one of the things that we see that comes up with a lot of discussions is having a true first-party data, right, which is really nothing but permission-based. I'm asking for consent from the consumer to share data willingly. And as I said a moment ago, it's about really establishing that value exchange. And when consumers are clear about what they are getting in return, we've also seen that they are willing to part with sometimes very personal information such as their demographics, where they live, their preferences, their likes, dislikes and so on and so forth. And it is really up to organizations to use that data effectively to deliver something that is useful to those consumers. So this is something that we see picking up a lot of momentum. We know that customers are rather enterprises, also want to tackle the third-party data today, but I think there is a general consensus that they need to start moving towards a first-party world because we've also proven with many organizations around the world that ultimately, a 0 party or a first-party data is the one that really establishes true advocacy with their consumer base. And that is something that has immense value to organizations of all sizes and shapes. And this is a clear trend that we see in the world of marketing. Now the next big takeaway for us from this survey has been the fact that metrics are becoming ever more important, right? And we all have heard and talked about data-driven organizations. And there is a good and a bad. The good, of course, is that like we saw previously, there is enormous number of data sources available for us to tap into. We have first-party data. We have second-party data. We have aggregated anonymous cohort level data. We have information coming from point-of-sale transactions, from loyalty, from affiliate marketing websites. So there is a lot of information available. But the challenge, of course, is how do you put that together in a way that makes sense. And you've got to be able to do it almost on a real-time basis so that you are able to proactively address what the data is telling you and take cost correction or take corrective action based on what the insights are telling you. One of the things -- and this is something that we feel that there has not been a lot of progress since we did this survey last year. The needle has really not moved much, because what we find is that while everybody agrees that attribution is important and measuring these metrics are important. Many marketers basically end up doing it manually where they take results and outcomes from various sources and they manually stitch it together, they create dashboards on their own, which we believe leads to a lot of inefficiencies. And I think there is a lot more potential for marketers to look at niche technologies and solutions that are available to address this particular problem. The other trend that we see, especially post-COVID, is that I think it's safe to say that we are definitely in a hybrid work environment. Like, for example, I'm actually sitting in the Salesforce office in Bangalore, but we are having this conversation on our digital platforms such as this one. And that is true of my team, a lot of the marketing teams that we've talked to. They have remote workers. Some of them are based in headquarters, some of them are not. They have to work with their counterparts who may be spread across Asia Pacific or even have colleagues in other parts of the world. And therefore, to keep that marketing engine chugging along and going, many organizations have resorted to lots of technology-based tools such as video conferencing, chat-based apps, instant messaging apps, enterprise social platforms and so forth to ensure that collaboration is effective, and they get the job done without really dropping ultimately the goals that the marketing team is supposed to deliver on the outcomes as opposed to. This has again become important. And in fact, there is a an interesting data point that I can share with you about Salesforce's own experience. Some of you may be familiar with the #TeamEarth campaign that we did, I think, around the 2022 Winter Olympics. And where we really highlighted a lot of the Salesforce products and things like that. But later on, we had a rethink about some of these campaigns. And we felt that, look, if we really need to convey the values-based approach that we have been advocating, wouldn't it be better if we showcase those values through the lens of our customers who are actually using our platform and they are delivering great experiences to their end consumers and are realizing tangible, measurable outcomes and benefits. Wouldn't that be a great way to do it? And in fact, in the last 6 months, I have been personally involved with my own team working with our customers to unearth a lot of this ROI that they are seeing by using the Salesforce platform. And our marketing campaign involves actually highlighting those successes that our customers have seen. And we've seen tremendous growth in social conversations. These are social media-friendly content that gets generated with the consent of the customer. The customer gets highlighted. Metrics are highlighted. And we've seen a tremendous amount of growth in awareness and interest and conversion ratios ultimately. And then I think this has a lot of lessons, not only for us, but I think from a customer standpoint, it would -- it could be advisable for marketers to really go back to their values, look at how they are aligned to their customers and consumers and drive campaigns based on that. A quick snapshot before I wrap this presentation up. We've talked about a lot of these things a little while ago. And this is a chart which specifically highlights some of the priorities and challenges that we've seen, how Indian marketers are addressing the challenge around data privacy. And you'll see that a lot of what we find in India is quite consistent with what we've seen around the world. Definitely, they're investing in a lot of new technologies and tools, but there is always a struggle and a challenge in terms of effective use of those tools and technologies. The number of data sources have gone up, as you can see in the middle of the chart in India, we have about 12. And I -- and we think that this number is only going to grow and become bigger to be more in line with what we've seen already around the world. And measuring attribution given that you have plenty of channels to invest in, the challenge then becomes really how do you optimize that spend, both on ads and other marketing initiatives, how do you make sense out of it? How do you optimize that spend? And then ultimately, how do you attribute that to retaining customers or reducing customer acquisition costs. So these questions are not necessarily new, but we see that Indian marketers are really laser-focused on some of these challenges. I now come to the end of my presentation, and we'll move to the fireside chat. I'm really happy to introduce to you Deepa Krishnan, who leads marketing. She is a veteran in the function of marketing, has worked with some great brands. And of course, Starbucks is an iconic brand that all of us are familiar with. And really glad to have her here to ask her to share some of her perspectives and how she views our -- some of our findings. Is it consistent? Does it align with some of her own experiences and findings. So welcome Deepa, really glad to have you here on this Webinar.

Thanks so much, Sridhar. Congratulations on your report and really looking forward to the discussion.

Thank you. So Deepa, just to start off this conversation, we talked about, now we are in this definitely a post-COVID world, right? It kind of almost -- for me at least, it feels like a distant future or past rather where we were under lockdowns and vaccinations and whatnot. But I think we've entered a phase where there is a lot of macroeconomic uncertainty, if you will, the Ukraine war. There is inflationary concerns in many countries, including India. And I'm sure that marketing budgets are undergoing a lot of scrutiny in the sort of, if I may say, a sort of a little bit of a volatile landscape. Although I do feel that in India, we seem to be in a better shape than other countries. But as a marketing leader, what are your priorities in this background, Deepa, for you and your organization?

Sure. So I think our #1 priority as we've seen in India, we completed 10 years in India. We opened up first store in Mumbai, the iconic Horniman Circle location in 2012. And at that point in time, of course, we were largely in the next rooms. Today, we are present in more than 36 cities across India, and we have more than 316 stores. So our primary target is to really be the most loved coffee brand in India, wherever we operate, right? And that comes with the challenge and the big task of maintaining the strong growth on new customer acquisition that we've been very successful at. So that's the #1 priority. And that's going to be interesting because we will now be making the transition, and we've already started that process from marketing to, let's say, one India to market into many Indias. We've thought to move from being an iconic global brand to being a brand which is also loved at a neighborhood store in the Siliguri or Bhubaneswar or Aurangabad right? And I think as a marketer, we are looking at various things and ways in which we can retain some of the iconicity of the brand, some of the familiarity of the brand identity and yet be as local as possible. So that's the #1 challenge that we have. The other one you also talked about it is really hyper personalization and segmentation. I mean, we want to really move towards a segment of 1, where we're talking to customers, based on the people they are, based on the needs that we have and really making every transaction with the account and making it relevant. And this -- we're very well placed to do that because we have a huge amount of first-party data. We have a loyalty base today, which is more than 2 million. And as you know the Starbucks provides programs, not the most priced programs across various industries. So we're very pleased to do that as we're really moving towards the segment of one. I think the third priority is really for us, digital. And everyone talks about digital, but at Starbucks, our priority is really going to be about humanizing the digital. As a brand, we are really known for giving customers fantastic experiences. So when I look at digital, I'm looking at how can I take my offline experience online and make sure that customers get a Starbucks experience even in their digital avatars, right? So that's the third priority. And last but not the least, we're very clear that whatever we do, we will always stay on purpose. We always want to make sure that we are doing our bit for the communities that we work in, for our partners who work for us, for the environment, because it's Starbucks. We believe there's no contradiction between doing what's right for business and doing what's right.

Great. Great. I really like the last point you mentioned, Deepa, in terms of really -- and I think that's, again, consistent with the survey findings is, I think the top performers or the high performers in the cohort that we survey. Definitely, they're seeing great results when they lead with values and purpose and something that is aligned to your community. And I'm really happy to see that you guys are really pioneers in that space and you've been doing this for a long time. And I think some of the things that you said, really some great takeaways for me. You started with in terms of that localized sort of etherians, right? Global brand, but still at the same time, you want to provide a local experience to in wherever city, your base, et cetera, which I think, again, makes a lot of sense to me. But the second question I have is really more around the second point that you brought up, right? And personalization to me, I think you guys are, again, Starbucks has been a pioneer. Just a simple -- when you go into a Starbucks coffee and the Barista asks for your name and when they use the sketchy pen or thing to write that name on your cup. I think that will itself is a level of personalization. I mean it's so simple. But it's really almost a genius move. But where do you push this? I mean you have a loyalty program, obviously, which again is, I think, is a great tool in terms of driving personalization. But where do you draw the line? And I know that the line probably is a little invisible sometimes in terms of pushing the boundaries. But how do you balance that in terms of saying, okay, I've got to respect the privacy of the consumer, but at the same time, I want to deliver something which is almost magical to that consumer and how do you do that basically?

Right, right. I'll actually just step back and you said something really nice in your report as well about values, right? For us, it really goes back to our brand mission and our brand mission is to really inspire and nurture the human spirit. 1 person, 1 cup, 1 neighborhood at a time. So when the founders and leaders of the organization started thinking about the business, we were very clear that we are not in the coffee business. We are in the people business serving coffee, which is why you have all these beautiful rituals right? One of the biggest things for us is unlike a lot of other QSRs, you are not a token number when you enter the Starbucks. You are not a #3, 4, 5, 6 whose -- your number is called out, and go and collect your order. You are a person. So Starbucks staff will greet you with a smile when you enter the store, ask your name right in the top, but call it out loud. All of these are rituals that are recognizing that you will spill it and making sure that every interaction that you have at Starbucks is really about uplifting their team. In fact, a lot of customers come back and tell us that the time that we spend in Starbucks is one of the most beautiful parts of pay a tea, irrespective of what we're doing. Now coming to how do you handle this and where do you draw the line, right? I think, one, my belief is if you, first of all, recognize your consumer as people rather than a person which is added to a transaction, you've already started from a very strong pace of connection, right? Secondly, if you use that data to give them information that's going to make their lives either more simple or delightful or give -- just reduce effort, let's say, consumers are then willing to go on that journey. Now in our case, it starts with that super gesture saying hello, Sridhar, what do you want? What's your favorite beverage? Getting it absolutely perfect at the store and then knowing and also anticipating that the next time you come to the store, and you're more likely to, let's say, order an Americano rather than decide, then grab cappuccino. And it starts with almost seeing you enter the store, recognizing what you want and giving it and then you're able to start that conversation with the staff. The same happens with our loyalty programs here. Like I mentioned, we have more than 2 million customers in our loyalty program. And all of this is first-party data. Today, we are able to anticipate what our customers are likely to have, what time of the day are they likely to come to our store, which store are they likely to go? What's the kind of food that they are likely to have, not have, et cetera. And all of this data of course is taken with their consent. We don't want to spam our customers with unnecessary information. So my mantra is, if you can really go to a segment of one where you could add value to the customer's lives they will actually happily join you in the journey. And we are always very cautious if at all, our customer does not want us to communicate with them, the entire loyalty program starts in the premise that you want us to communicate you or not. And if somebody doesn't, we're very, very respectful of that as well.

Great. Great. That's really, really very interesting and insightful, Deepa. And that leads me to the next question. You talked about the first-party data that you have and the kind of rich insights you can draw from it, right? What are they likely to buy and when and what time of the day, what kind of foods would they prefer. I mean, all of this is really a fantastic treasure trove of information. And -- but zooming out a little bit, I mean, that end consumer experience, obviously, is something that you really can deliver through the insights that the data provides. But I'm sure you're also looking at things like making your marketing processes more efficient, deriving more value from the marketing spends across various platforms, add social media, e-mail campaigns, et cetera, et cetera. And one of the things that we keep hearing in the industry is that all of these insights is good, but you've got to generate those insights almost in a sort of a real-time manner, right? Because that real-time manner is -- could ultimately end up being your competitive advantage. Because you have -- the competition also doing the same thing, right? So ultimately, doing this at speed and at scale becomes an advantage, right? Do you -- I mean, do you see that in your organization as well, is there a need to do this real-time engagement? Because -- and again, probably the coffee business is slightly different. But in many areas, the attention span of the customer is so small and there is so much of distraction and there's so much of noise out there. And in order for you to break through that clutter, you got to do things very quickly, but you got to sort of hit the target, right? So how do you see this? What kind of KPIs and metrics do you track? And how do you make sense of it in terms of delivering that real-time intelligence?

Yes. So I'll give you a couple of examples. And you're very right. I think today, the problem is not data. The problem is how effectively we're going to use data in a respectful manner with customers, okay? So let me give you some examples of how we've done that, which is not necessarily only for our loyalty program, but I will touch on the loyalty program as well. Way back in 2020 when of course, COVID hit us and our stores were shut. Our stores were shut for 3 months, and we found we have a lot of data even on our customers, of our customers on social media. And we have outpouring of customers in social media, and tell us that they were missing Starbucks and were missing our favorite beverages. We ran a really simple campaign called #ReconnectWithStarbucks, where we asked customers to share their favorite beverage. And then real-time, we had posted on messages, DMed on their Instagram calling out the name of the customer and their favorite beverage in spite of the fact that stores are closed. We delivered more than 3,000 such messages and we went to win an International Shopees Award for the best use of Instagram. Similarly, when we had to finish towards delivery, we had to ensure that we make the Starbucks experience relevant even on a delivery platform. So all our delivery passes at that time went with personalized messages. Moving now towards loyalty. In fact, last year, we celebrated our 10th anniversary and some of our top customers, we send personalized videos of the journey that they had with Starbucks, right, from the first time they entered our store, how the rewards we've set reached to them, the milestones. So, let's say, you would have got a personalized video, a number of them could have got personalized video, it's not personalized for the one, with all the individual journey. And even if you look at our mobile app, it's not in what we have on the mobile app as well, we've tried to take the offline ritual online and you have -- but it's not messages as well, which gives you -- give you suggestions on pairing, food pairing, all the kind of rewards that you can receive, et cetera. So there are -- it's actually very simple. If you identify your mission and purpose. For us, it is about really humanizing the digital. So everything that we've been doing in that ecosystem is to really get the offline Starbucks experience online and with as relevant in every way as possible. So every day of the app, you're interacting with a virtual barista who's giving your message, learning from your past transactions, learning from your past behavior so that the effort for you is in looking at your past 5 orders and so on and so forth.

Great. Great. That was really again super insightful Deepa. So again, I think we are around 11:45 now. So I have 1 more question. And again, coming from a sort of a technology background, we generally tend to get excited about a lot of these emerging stuff, what is the new shiny object that's out there, and that's our bread and butter. But I wanted to throw this question to you to see how do you see these things evolving? And is it just like some buzz and hype that we see or is there something more to it? And what I'm specifically talking about is this whole virtual digital world that -- we ultimately, we do -- are sort of entering this sort of territory, right? There is a lot of talk about web3, the next generation of the web2 that we are on currently, the Metaverse world, virtual reality, augmented reality. There are new technologies based on blockchain such as NFTs, which, again, they hold a lot of promise. And probably next-generation loyalty programs are going to be probably be built on blockchain-based technologies like NFT and so forth. How do you see these kinds of technologies playing a role from a marketer's perspective and more specifically, do you see Starbucks sort of entering into some of these areas to deliver even better experiences in the digital world?

Absolutely. You're not the only one who is excited about it. We all are. I think the big difference is going to be getting onto it almost hopping onto it, because it's a fact versus journey, providing universal experience to your customers, which is authentic. And I think brands which are able to really integrate it with the experience or the values that they stand for will be able to own this much better. I'll give you an example, if you visit our Reserve Store in Mumbai, we opened our first Reserve Store in October, which is actually the same port store, which was our first store in the country. And a Reserve Store format is essentially a format where you have some really exclusive coffee blends, which may not come back in a decade in small, large coffees, fantastic beverages, et cetera. Every one of our stores has a mural, which is dedicated to our Starbucks Siren or the boutique of the brand. And in the Reserve Store, you have AR filters which you can actually engage with the viewers, who all start talking to you in [indiscernible] And in the U.S., Starbucks has already launched and has started I mean, a lot of groundbreaking work with Starbucks Odyssey, which is really a program which is originally being meant for its loyal customers and have NFTs there also, which you could mind for move more to the loyalty program. So I think very exciting times for our all partners. So many other markets in Starbucks will eventually do this as well. But we will always do it to the lens of making sure that giving customers the Starbucks' experience rather than just shopping on to a minus fat. So we would want to own it in our own Starbucks with Central Starbucks today.

Great. Great. That makes a lot of sense. Thank you. Thanks, Deepa. I think this is really super interesting, very insightful as well. We'll just take a pause here. We have a few more minutes left. Perhaps we can take a few questions. Namit or Nathan, can you help us with any questions or..? Okay, I'm just going through the chat window right now. So there's 1 question, Deepa, that -- if you can -- I mean I'll read it out. I think you touched upon a lot of aspects of the loyalty program, but Reshma wants to know what makes the Starbucks Loyalty program, so priced? What are the values that it is built on? And is it designed to be giving within "customer-oriented". I don't know if you want to add something to what you already said, Deepa, to this one?

Sure. Thanks, Reshma, for that question. I think the Starbucks Loyalty program is really built on the principle of celebrating customers and make Starbucks a part of their life and team. We want to treat all our loyal customers base, especially go the extra mile to take care of them. And it is built on the principle of a deeper connect that the brand has with them and celebrating every milestone. So that's, I think, what we try and do in the program. And it's not only about rewards. I mean, all programs have rewards. But for example, in the Starbucks Loyalty program, we have various things where we would have meet and greet with the CEO and CMO, we could have a lot of discussions around coffee. We would have special coffee tastings for our customers. We call their families over and have celebrations. We celebrate them on social media. So of course, there is the whole thing of getting your rewards but there is also the team of recognize and celebrating the people who are really very big customers.