Starbucks launches loyalty program built on NFT
When it comes to quick service restaurants (QSRs), Starbucks has some of the more loyal customers out there, with the brand’s rewards program often held up as the example. Now the coffee house chain will find out just how loyal their fans are with a new rewards initiative that relies on a higher level of engagement with the brand than any before.
On Monday (September 12), the brand announced that later this year it will launch Starbucks Odyssey, a program where customers and employees can earn non-fungible tokens (NFTs). These rewards will be earned through so-called “journeys”, including “interactive games” and “fun challenges” centered around coffee and the brand in general. NFTs will also be purchasable, and program members will be able to buy or sell them to each other.
See also: Starbucks distributes NFTs in rewards program
At a time when many brands are looking to meet consumer demand for speed and convenience, and touting the benefits of time savings, Starbucks expects enough of its customers to be willing to dedicate this kind of time and focus to the brand to make this launch pay off . In addition to asking members to participate in games and other branded experiences, some of the rewards offered also include a significant investment of time and attention such as virtual classes and invitations to events.
If the effort pays off, and members prove willing to engage in these offers, Starbucks will have a deeper hold on its loyal customers than ever before. Still, NFTs are far from a surefire hit, with the technology’s growth hitting some major downsides. In July, for example, NFT marketplace OpenSea announced it was laying off 20% of its staff amid a “combination of crypto winter and broad macroeconomic instability.” Additionally, a May edition of PYMNTS’ Today in Data noted findings that NFT sales had fallen 92% since September.
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That said, regarding the engagement that Starbucks seeks from its fans, the coffeehouse chain is certainly not the restaurant to gamify its loyalty program and add different types of rewards. Chipotle, for example, announced in June 2021 the launch of its Rewards Exchange, which offers giveaways ranging from menu items to clothing. In September 2021, the fast-casual brand added gamified Extras, offering extra points and badges for completing personal challenges. These initiatives appear to have been successful.
“Not only have we seen strong positive responses from our most loyal fans, but even more exciting is that these program improvements have increased the engagement of our mid- and low-frequency guests,” Chipotle CEO Brian Niccol told analysts on a February call.
Read more: NFTs Flip the script on fast food toys with crypto collectibles
It remains to be seen whether the technology investment will prove to be the key to driving deeper engagement down the line, or whether the coffee house chain might be putting the digital cart before the digital cart.
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