In 2021’s crypto bull market, many well-known companies cashed in on the enormous potential profits by releasing their NFTs (non-fungible tokens). Crypto bear markets have caused many projects to scale back or be scrapped two years later. Non Fungible data reported an 83% decrease in NFT sales from 2021 to 2022.
But in December 2022, Starbucks entered the NFT market and became one of the biggest brands. Starbucks’ loyalty program generates roughly half of the company’s revenue and is one of the largest and most successful in the world. Starbucks is expanding its rewards program through the Odyssey initiative, which allows customers to earn additional benefits by purchasing coffee and participating in digital games and quizzes.
Starbucks Rewards, the existing loyalty program, has expanded with a new program that utilizes web3 technology, such as the polygon blockchain and NFTs. This program facilitates coffee-themed NFTs that can be redeemed for real-world experiences. We hail the initiative as a new, next-generation loyalty program model,” said Starbucks, calling it a “revolutionary
Since the beta launch in December, they have made a surprising amount of money. Customers bought NFTs for less than the price of a cup of coffee, but they are now selling for as much as $1,900 on the secondary market, resulting in more than $200,000 worth of sales. Crypto supporters on social media rally around the program, arguing that it offers the ideal way to bring crypto into the mainstream. Analysts at Bank of America praised the program for being “more holistic than the industry’s prior NFT forays.”
Forum3, a startup that announced a $10 million funding, collaborated with Nifty Gateway, an NFT partner, to design the experience. Starbucks’ former Chief Digital Officer, Adam Brotman, is now the co-CEO of Forum3.
Starbucks initially offered the NFT loyalty program only in the United States, but they planned to invite more members from the waitlist every month starting in January.
What Have We Learned So Far about Starbucks Loyalty Program NFT?
- You can complete activities along the way, such as games and challenges, to earn points.
- The total number of points determines three tiers. When we have more points, we can access more perks, such as exclusive merchandise and invitations to special events.
- Doing everything in a given journey earns you stamps (and you get bonus points for doing so). Additionally, you can purchase Limited Edition Stamps, rare NFTs that will increase your total number of promotional bonus points.
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Starbucks’ Rewards Program Demonstrates the Power of Customer Loyalty
Starbucks, the world’s largest coffee retailer, said that Starbucks Odyssey would provide its most loyal customers with access to more and different rewards, such as free beverages, than what is currently available. On the other hand, Odyssey introduces a new platform where customers can engage in interactive activities called “Journeys,” and completing them rewards members with collectible Journey Stamps, which Starbucks calls NFTs.
To clarify, Starbucks Odyssey supplements its existing loyalty program instead of replacing it.
Starbucks Odyssey Is Using NFTs to Gamify the Customer Experience
This is how it happens. The customer selects an avatar to represent themselves in their digital experiences and connects their Starbucks Rewards account to Starbucks Odyssey. Now, the user can start a series of “Journeys,” which are collections of tasks. Starbucks cleverly associates each of its “Journeys” with a different tenet of the company’s ethos through branding. For instance, users can virtually tour a Costa Rican coffee farm or complete a Starbucks-themed history quiz.
Starbucks aims to familiarize customers with its products and culture through Journeys while promoting its name. The company might have in mind videos, quizzes, puzzles, and even trips to the store to sample newly released beverages. Completing various tasks throughout the Odyssey earns you “stamps,” which you can buy and sell as points and NFTs. As Starbucks moves the Odyssey beta trial into full production, you will redeem these points and stamps for unique perks and experiences. Starbucks is advertising various unique opportunities, including offering online lessons on making espresso martinis, providing access to private events, and even paying for vacations.
Also Read: Web3 Loyalty Program
Starbucks’ integration of Odyssey with its existing loyalty program, business goals, and mobile payment technologies makes it more interesting than other corporate NFT initiatives.
Users can scan their existing Starbucks Rewards card at the register before ordering the required drink or menu item to earn points for in-store purchases and then share that information back with Odyssey.
By the end of January 2023, Starbucks will construct four Journeys into Odyssey, highlighting a different aspect of the company’s culture and ethos:
- The company’s origins
- Its commitment to the environment
- Its coffee-making processes
- The winter holidays
Selecting one of the four Journeys allows customers to access videos, quizzes, and games.
Starbucks has developed a simplified homepage with the user’s chosen avatar as the header. It includes a dashboard for tracking Journeys, stamps, points and a link to the stamp marketplace.
Also Read: Top 10 Influencers of the Metaverse
How can NFTs enhance Starbucks’ Reward Program?
The consumer goods company always seeks new strategies to recognize, surprise, and delight its Rewards members. Starbucks should experiment with NFTs and blockchain since millennials constitute its largest customer segment. The company’s customers aged between 25 and 40 comprise about half the total, and young adults (18-24) represent the next largest demographic.
The youngest age groups find NFTs popular and easily understandable. Gen Z has the highest investment experience and general interest in NFTs, with millennials coming in second.
Starbucks Odyssey is more than just NFTs; it’s also about Community.
The Odyssey beta centers around the Starbucks community server on Discord chatting app. Beta users, Web3 fans, and anyone interested in the Starbucks Odyssey can discuss their experience, report any problems, receive answers to their questions, participate in online events, and even arrange in-person gatherings on this platform. Starbucks’s efforts have created a one-of-a-kind meeting ground for Web3 specialists and coffee lovers at the server. The brand’s word has been spread, and user feedback has been collected, both crucial to developing the Odyssey beta.
Peg Samuel, a coffee connoisseur and Web3 strategist at MetaJuice noted the value of the discord server and how it enriched the Odyssey experience by bringing together such disparate groups.
The Odyssey is in beta. Two distinct communities collaborated to produce something of value for the brand and the users, resulting in a fantastic illustration on the Discord server.
User Experience is Key to Starbucks’ Success
Starbucks’ success will depend on how well it bridges the gap between those unfamiliar with new technologies and all their jargon and those familiar with it. Users are shielded from the technical lingo of the system underneath by journeys. People refer to NFTs as “stamps” for digital collectibles earned through a loyalty program.
The NFT Program is About More Than Just Free Coffee
Today’s members enjoy free beverages, meals, and merchandise. However, Starbucks Odyssey allows users to redeem points for rewards that extend far beyond just free coffee.
NFT purchasers are likely to receive the most significant benefits, although some form of compensation may be available for achievement.
No Wallet or Crypto Currency
You don’t need a cryptocurrency wallet (like MetaMask) to take part. In a press release, Starbucks promotes this as a “fun and easy way for members to access this new technology.”
It is disappointing that Starbucks would take this approach, even though some customers may find crypto technology too foreign. After all, how can they claim that people who buy their NFT with credit cards have “access to this new technology” if they don’t employ it themselves? Giving your toddler control of the car stereo while riding the Ferris wheel is like taking control.
The NFT’s: Limited Edition Stamps
Members can participate in Starbucks Odyssey ‘journeys’ after signing in. These journeys consist of various activities that aim to expand their understanding of coffee and Starbucks culture through play. Traveling members will earn a non-fungible token (NFT) that they can use as a collectible “journey stamp.”
Users in the online community’s built-in marketplace can sell “limited-edition stamps” (NFTs) to other members. The NFT collection will feature items of varying rarities, just like traditional collections such as CryptoPunks. Starbucks quantifies this scarcity on a points scale. Starbucks chose Polygon as its data storage system.
The system grants users access to premium features as the point value of their accumulated NFT stamps increases. Starbucks offers a few examples.
Starbucks is an online customer loyalty program. The games within NFTs are more interactive than those available through a standard Starbucks Rewards account, and they offer rewards in the digital realm. One of the most recognized companies in the world is conducting a fascinating experiment. We are wondering if Starbucks will make future iterations of “crypto native,” allowing customers to fully own their NFTs and transfer them outside of Starbucks’ proprietary online ecosystem.