Starbucks opens its web3 loyalty program and NFT community to first beta testers • TechCrunch

Starbucks is today launching its blockchain-based loyalty program and NFT community, Starbucks Odyssey, to its first group of US beta testers. The new initiative, which includes coffee-themed NFTs that translate into real-world experiences, is an extension of Starbucks’ existing loyalty program, Starbucks Rewards, but leverages web3 technology such as the polygon blockchain and NFTs.

Announced to investors earlier this year, the coffee chain giant said it envisioned the Starbucks Odyssey as a way for its most loyal customers to earn a broader, more varied set of rewards beyond the perks they can earn today, like free drinks. Instead, Odyssey is introducing a new platform where customers can engage in interactive activities called “Journeys” that, when completed, allow members to earn collectible Journey Stamps — which are Starbucks’ less nerdy names for NFTs.

Image credit: Starbucks

The trips are designed to promote the Starbucks brand and teach customers about coffee and the company’s history. They can include any number of activities, such as watching videos or taking quizzes, playing puzzles or even going to the store to try out new drinks the company wants to promote. The latter example is part of what makes Starbucks Odyssey more interesting than some other corporate NFT initiatives, as it’s actually connected to the company’s existing loyalty program, business goals and mobile payment technologies, rather than acting as a quick add-on.

In the case of trips tied to in-store purchases, Odyssey members would scan their existing Starbucks Rewards card when purchasing the required drink or menu item, and that activity would then be shared back with Odyssey, earning the membership points.

At around 500 points, members will earn stamps – that is, a coffee-themed NFT hosted on the Polygon blockchain. These stamps also unlock special experiences. There will be three levels of unlockable benefits and experiences. At the lower end, these can be online experiences, such as a virtual class that teaches you how to make an espresso martini, or provides access to unique artist products. As you earn more points and NFTs, you can start accessing real-world experiences, like special events hosted at Starbucks Reserve Roasteries or even a trip to the Starbucks Hacienda Alsacia coffee farm in Costa Rica.

Image credit: Starbucks (opens in new window)

The points are accumulated over the course of the year, rather than being redeemed for rewards (as stars are). At the end of the year, the points are reset and you start over. But you’ll still keep your NFTs, which will later be integrated with the Starbucks app, allowing customers to customize the Starbucks card or perhaps be printed on other items.

As the Odyssey program launches into beta, the first Journey stamps will include those designed with inspiration from Starbucks history, such as the first location in Pike Place Market in Seattle; others want classic designs and this year’s “Gift-Wrapped Magic” Christmas cup art.

The company declined to confirm how many customers have signed up to the waiting list, but said demand had “far exceeded” expectations. It will now start letting some of the waiting list users come in to test Odyssey and provide feedback on the initial experience, which it will use to adapt the program further. Users will receive an email if invited to the beta and then have three days to join. If they don’t, they go back to the waiting list for a future invitation.

Image credit: Starbucks

To participate in Starbucks Odyssey after receiving an invitation, members must have an existing Starbucks Rewards account as this program is tied to the company’s larger loyalty initiative. (There are not separate accounts just for Odyssey.)

When members participate in Odyssey, they will earn NFTs, which have a point value based on their rarity. That means, in addition to being linked to real-world experiences, the NFTs will be able to be bought or sold on Odyssey’s marketplace, which will launch in 2023. This part is powered by the Nifty Gateway, with NFT ownership secured on the blockchain.

Starbucks also simplifies the process of purchasing NFTs, as it does not require members to have a crypto wallet, their own cryptocurrency, or have any understanding of the underlying web3 technologies. Beyond dropping the word “NFT” from Odyssey’s lingo, members can purchase the “stamps” with a credit card, as they would with any other online purchase.

“It happens to be built on blockchain and web3 technologies, but the customer — to be honest — may not even know that what they’re doing is interacting with blockchain technology. It’s just the enablement,” Starbucks CMO Brady Brewer told TechCrunch in a interview back in September.

Image credit: Starbucks

For the coffee chain, the program allows the company to engage its most loyal customers and build community, but also provides a potential revenue stream. Starting next year, it will issue Limited Edition stamps, which members can purchase to support various causes. The artwork on these NFTs will be created by Starbucks and outside artists, while “a portion” of the sales will support causes chosen by Starbucks employees and customers. (The company won’t yet say how much of the remaining revenue it will keep.) These stamps will be issued four to six times a year.

While many companies’ forays into the NFT market are gimmicky and ill-conceived, Starbucks has been more careful in weighing its approach to web3. The company said it had been researching blockchain technologies for a couple of years, but it has only been involved in this particular project for about six months. Brewer previously said the company did not want to treat the investment as a “stunt” side project, but rather wanted to use the technology to expand its existing loyalty program.

Starbucks also brought in Adam Brotman, the architect of the mobile ordering and payment system and the Starbucks app, to help serve as a special advisor on Odyssey. Brotman’s team, which is now a co-founder of Forum3, a web3 loyalty startup, worked alongside the Seattle coffee chain’s own marketing, loyalty and technology teams, the company said.

Image credit: Starbucks

In a demo of Odyssey, the program looked easy to use. You log in, choose an avatar, go through an onboard experience that teaches you about travel and stamps, and get started. The company says there will always be at least two journeys available at any given time.

The first invitations will be sent to a small group of waiting list members today, December 8. In January 2023, Starbucks will begin sending out monthly invitations to a wider group of waitlist members.