Starbucks ties NFTs to loyalty program in beta launch
Dive card:
- Starbucks launched a beta version of Starbucks Odyssey, an NFT-affiliated extension to its existing loyalty program, per a company release. The experience launched to select Rewards members in the US on December 8.
- Starbucks Odyssey allows reward members to take part in interactive challenges, or “Journeys”, to win a digital NFT “Journey Stamp” and bonus points towards the total reward amount. Points can be redeemed for experiences or goods.
- Beta participants will also have access to the Starbucks Odyssey marketplace where they can buy or sell their travel stamps among members. The stamps have extra bonus points and can be purchased with a credit card. Next year, reward members can purchase limited edition travel stamps with a charitable component.
Diving Insights:
First teased during an earnings call in August, Starbucks Odyssey quickly gained attention in the marketing industry for its potential to lay the foundation for what a web3-integrated loyalty program could look like. Starbucks already has a successful rewards program, with half of the total sales come from reward members – Integrating NFTs into the program can be a realistic measure of consumer interest in the technology as marketers look at new tactics to collect first-party data.
However, betting on blockchain technology is a bold move. This year has seen NFTs gradually lose value in the eyes of consumers, with daily average sales drop by 92% between September 2021 and May 2022. A survey by Forrester in March found that 72% of consumers have never heard of NFTs or have no interest in buying or owning one. Events such as the “crypto winter” and crumbling of FTX probably didn’t help. Still, Starbucks Odyssey may prove to be an exception, offering rewards members a value proposition that ties into their existing rewards program and creates a low barrier to entry. Although powered through the blockchain Polygon, those interacting with Starbucks Odyssey do not need to have a crypto wallet or cryptocurrency – just a credit card and a Starbucks Rewards membership.
To engage with Starbucks Odyssey, Rewards members must be logged in. From there, they can participate in a variety of interactive activities such as taking a virtual tour of Starbucks coffee farm Hacienda Alsacia in Costa Rica, answering questions about Starbucks’ heritage and playing popular games such as Starbucks for Life. After completing an activity, members will be awarded a stamp and bonus points.
Points earned can be used to unlock experiences organized into three tiers, with a higher point value correlating with a more unique experience. At the lowest level, users can take a virtual espresso martini course, and higher-level experiences can include access to merchandise and artist collaborations, invitations to events at Starbucks Reserve Roasteries or a trip to Hacienda Alsacia, offering reward members a value incentive beyond just own an NFT.
The first collection of Journey Stamps embodies classic designs that nod to Starbucks history, like a stamp modeled after the chain’s first location in Pike Place Market in Seattle, and this year’s Christmas cup design. Starting shortly after the beta launch, participants will be able to access the Starbucks Odyssey market, powered by the Nifty Gateway, to buy and sell NFTs among other members. The NFTs can be purchased with a credit card with each purchase linked to extra bonus points. Next year, users will be able to purchase limited-edition stamps with a portion of sales going to purposes determined by Starbucks employees and loyalty program members.
Original invitations for beta participants were sent in December to members including Starbucks employees and customers, and additional monthly invitations will be extended to a wider group of members starting in January 2023.
