In September 2022, Starbucks announced its NFT-based loyalty program called Starbucks Odyssey. Considering its particularities and possible developments, Starbucks Odyssey is a revolutionary marketing move that will result in unstoppable business growth.
This news shouldnât come as a surprise, though. Starbucks was one of the first brands to offer its clients WiFi, increasing the time people would spend inside the coffeehouses. Also, Starbucks pushed the idea of mobile wallets long before Apple Pay became widely used. Moreover, the company transformed mobile ordering into a standard long before the pandemic.
For Starbucks to embrace NFTs as part of its loyalty program is just continuing its innovation strategy exploring and leveraging the latest technological development.
Although itâs still operating based on a Waitlist people can register on, the Starbucks Odyssey aims to provide a new Web3 experience to its US clients once fully launched. Â
According to the companyâs statement:
âStarbucks is one of the first companies to integrate non-fungible tokens (NFTs) with an industry-leading loyalty program at scale while creating a digital community that will enable new ways for Starbucks to engage with its members and its partners.â
Starbucks Odyssey is an extension of the companyâs Rewards program. However, the NFT-based loyalty program will allow people to access and transfer value, which is impossible with the traditional Rewards program.
For example, people canât withdraw their money from the Starbucks Rewards app. If they bought a gift card, for example, they canât access their money anymore. Also, they canât re-sell or transfer the gift cart. However, this new NFT-based loyalty program will change this situation, allowing people to exchange and trade the Journey Stamps.
As the company highlights:
âOnce logged in, members can engage in Starbucks Odysseyâ journeys,â a series of activities, such as playing interactive games or taking on fun challenges to deepen their knowledge of coffee and Starbucks. Members will be rewarded for completing journeys with a digital collectible âjourney stampâ (NFT).â
Quick note: Starbucks decided to avoid using blockchain-related terminology. For example, the NFTs became Journey Stamps. This way, the company is adapting this specific use case to its brand, reducing the anxiety or uncertainty clients may experience. After all, many Starbucks fans may be unaware of blockchain technology. Making things easy for them is crucial for the programâs success. Thanks to effortless purchases made via credit cards, Starbucks will help people to quickly onboard with Web3 avoiding headaches such as gas fees, separate wallets, blockchain transactions, and more.
Each Journey Stamp will feature an iconic artwork co-created with Starbucks partners and renowned artists, making them collectible. Also, the stamps will have a point value based on their rarity.
By earning Starbucksâ Journey Stamps, people can access multiple perks and experiences. Here are some of the possibilities the Starbucks Odyssey opens:
To win the Journey Stamps, Starbucks clients will have to participate in different challenges, including real-life activities, such as trying three things on the express menu.
As Starbucks CMO Brady Brewer told TechCrunch:
âWeâll have experiences that do link directly to customersâ behavior in our stores.â
NFT expert, Brett Malinowski, provides excellent use-case examples that help visualize the utility of this strategy.
As Malinowski highlights, Starbucks can apply old-school marketing tactics with a digital twist. For example, the company can launch a 12-month learning program for its fans. In the first month, people may learn where coffee beans are sourced. During the second month, Starbucks fans can learn how coffee is processed. In the third month, they can discover what machinery to use to prepare a specific coffee type. In other words, people can learn different things, earning a Journey Stamp at the end of each month.
Once someone collects all 12 stamps, they can merge them and generate a Golden Starbucks Pass that may give them perks such as:
Moreover, those who have all 12 stamps may be able to sell some of them to those who have fewer stamps yet want to access Starbucks perks.
The possibilities are unlimited.
As Malinowski indicates, the NFT-based loyalty program allows Starbucks to prime its audience, teach people about its new product lines, and simultaneously reward them by nurturing its fanbase. In other words, blockchain technology and the NFT-based loyalty program enable Starbucks to create an entire digital economy around its product.
Quick note: To minimize the energy used for its NFT-based program, Starbucks uses a âproof-of-stakeâ blockchain technology built by Polygon. Â