Starbucks Embarks on NFT Odyssey…But Don’t Mention NFTs!
Starbucks has launched its long-awaited Blockchain-based extension to its Rewards loyalty scheme, with coffee-themed NFTs mapping real-world experiences.
Starbucks Odyssey was opened to a select group of beta users in the US, with a platform where members can interact with activities known as Journeys. NFTs aren’t a term that gets thrown around – Starbucks has renamed them Journey Stamps.
It’s all an extension of the Starbucks Rewards scheme, which has 60 million registered members worldwide – 29 million of which are in the US – and is estimated to account for around half of the company’s business. The fact that Odyssey is an extension of Rewards, rather than a separate NFT-centric addition, makes it a big boost for Starbucks.
On offer are rewards more extensive than a free cup of coffee, and when rolled out to everyone next year, Odyssey will be the biggest example of a food and beverage company’s push into a Web3 loyalty program.
Starbucks CMO Brady Brewer said at the launch:
Starbucks has always served as the third place, a place between home and work where you feel the warmth of connection over coffee, community and belonging. The Starbucks Odyssey experience will extend Third Place’s connection to the digital world.
How does it work? Odyssey members scan their existing Starbucks Rewards card and earn their membership points. At 500 points, members earn stamps. There are three tiers of benefits/experiences that can be unlocked, from online experiences at the lower end, such as a virtual class to make coffee-based cocktails, to real-world experiences, such as events, at the high end. Membership points are reset at the end of the year, but members keep their stamps.
For the beta, the first Journey stamps are all inspired by Starbucks history.
The Journey Stamps have a point value based on their rarity and will be able to be bought or sold on an Odyssey Marketplace, launching next year. In another interesting difference from other NFT initiatives, users do not need to have a crypto wallet or own cryptocurrencies to transact. A simple credit card is all it takes.
CMO Brewer explained the rationale behind the new scheme:
Starbucks has a history of using emerging technology to innovate on behalf of our customers and make it accessible and accessible to the mainstream. Our innovative spirit and desire to continually exceed the expectations of our customers has led to the launch of Starbucks Odyssey.
“Starbucks Rewards members are some of our most loyal and engaged customers, and Starbucks Odyssey is our next big loyalty innovation to recognize, surprise and delight them. We are leveraging Web3 technology to reward and connect with our members in new ways, such as offering collectables that can be owned by digital stamps, a new digital community, and opening access to new benefits and immersive coffee experiences – both physical and digital.
My opinion
As someone who can never quite get my head around conventional loyalty schemes, Odyssey isn’t something I’m dying to get my hands on. But it’s certainly an interesting evolution of such programs and the latest example of Starbucks taking the lead in digital marketing efforts. For now, this is limited to a small test audience. The proof of whether this will deliver on the promise Brewer and his colleagues hope won’t come until next year when it opens to the masses. Definitely a program that many other brands will be watching with great interest in 2023.
