Where is Starbucks’ NFT odyssey headed?
16 September 2022
Starbucks is revamping its loyalty program and working a NFT platform into the mix, though it doesn’t use that acronym to describe its digital art offerings.
Starbucks recently announced its new digital community called Starbucks Odyssey, which will launch later this year, according to TechCrunch. Users will be able to log in with their loyalty app credentials, and then take part in games and challenges called “journeys” in the app.
Visitors who achieve goals and complete journeys will be rewarded with NFTs (which can also be bought and traded on a marketplace). The digital collectibles will be referred to as “travel stamps” within the platform.
Visitors will also be able to unlock benefits by collecting stamps. Starbucks envisions the benefits to be greater than the free drinks and food typical of loyalty programs. Expected rewards include access to classes or unique items or, at the higher end, invitations to exclusive and even international events. The highest rewards are expected to go to those who purchase the most expensive NFTs, but lower levels will be available to those who earn their stamps in the app.
A number of retailers and brands have begun experimenting with “Web 3” technologies such as NFTs.
Pacsun offered its first collection late last year and followed it up this year with two series of “Mall Rats” NFTs, featuring cartoon rats with Pacsun products. One of the Mall Rats collections was done in collaboration with Reebok.
And Nike went so far as to acquire an NFT creation studio called RTFKT (pronounced “artifact”), which established itself by selling virtual sneakers created in collaboration with artists for tens of thousands of dollars.
But NFTs have also proven to be controversial for a number of reasons. In the world of art collecting, some have become skeptical as to whether “owning” an NFT can really be compared to owning an original work of art.
The amount of energy required to make NFTs has also raised environmental concerns. The UK branch of the World Wildlife Foundation came under fire from conservationists for launching an NFT line, which it quickly canceled due to backlash, News about climate change reported. The cancellation created a backlash from NFT collectors.
DISCUSSION QUESTION: Given the controversy surrounding the technology, do you see Starbucks’ implementation of NFTs as worth the company’s investment? What other ways can a retailer use “Web 3” technology to improve its loyalty program?
“Do you see Starbucks’ implementation of NFTs as worth the company’s investment given the controversy surrounding the technology?”
