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Starbucks introduces NFT loyalty programme Odyssey

Tuesday 13 September 2022 13:15 CET | News

Starbucks has announced the introduction of Starbucks Odyssey, a loyalty programme that will combine Starbucks’ Rewards with an NFT platform.

Launching later in 2022, Starbucks Odyssey is the company’s first incursion into building with web3 technology and it will allow its customers to earn and purchase digital assets that will unlock a broader set of rewards and experiences.

Starbucks representatives have stated for TechCrunch that they have been investigating blockchain technologies for the last couple of years but have only started being involved in this project for around six months, with an urge to expand the business and its loyalty program. Although built on blockchain and web3 technologies, Starbucks chose to make NFTs the necessary permits that allow access to this digital community, while making the nature of the technology behind it obscure. This is believed to make the platform more accessible for non-technical customers.

Starbucks has announced Starbucks Odyssey, an experience combining Starbucks’ Rewards loyalty programme with an NFT platform

How the Starbucks loyalty programme works

Starbucks Rewards members will be able to access the Starbucks Odyssey web app with their existing loyalty programme credentials and engage in a variety of activities that, once completed, will allow members to collect non-fungible tokens (NFTs). These collectibles will be called ‘journey stamps’, as Starbucks Odyssey will not have technical language, and the ‘journeys’ that will enable their collection can vary from interactive games to challenges based on knowledge acquisition of the Starbucks brand or coffee.

In addition, a set of limited edition NFTs hosted on the Polygon blockchain will be available for purchase in the Starbucks Odyssey app, with no crypto wallet being required. The customer will be able to make their payment using a credit or debit card, this feature following the company’s belief that by providing ease of access, people will be more eager to engage with web3 experience.

Although the amount and pricing of the NFTs that will be available at launch have not yet been made public, the ‘stamps’ (NFTs), will contain a point value based on rarity and will be traded in the Starbucks Odyssey marketplace, having their ownership secured on the blockchain.

With the collection of these ‘stamps’, exclusive benefits will be unlocked by Odyssey members, separate from the traditional Starbucks Rewards perks that can be currently earned. The range of the benefits that members can have is dependent on whether the NFTs have been earned or purchased, the expectation being that those who purchase the NFTs will have higher perks reserved. 

However, company representatives have stated that they want a deep integration of Starbucks Odyssey with the already existing loyalty reward programme and hope to connect real-world Starbucks purchases with the web activities that enable NFTs earning. Although the range of activities available at launch is yet to be determined, NFTs gaining is wished to be made accessible to customers who might not otherwise engage in NFT communities due to financial reasons.

Starbucks has chosen the Polygon ‘proof-of-stake’ blockchain technology for the Odyssey program as it uses less energy than first-generation ‘proof-of-work' blockchain. As of September 2022, Starbucks Odyssey web3 platform’s waitlist  has been open and will launch later in 2022.

Starbucks Odyssey is one of the major updates from Starbucks when it comes to their loyalty policy. In July 2020, a similar announcement was made when they introduced the option to link credit or debit cards and PayPal accounts with Starbucks accounts, enabling customers to process payments within the app.

Loyalty programmes worldwide, facts and figures

The Global Loyalty Programs market is expected to increase at an annual rate of 12.6% and reach approximately USD 143 million in 2022, according to the Q1 2022 Global Loyalty Programs Survey, according to the official press release from ResearchAndMarkets.com. 

During 2017-2021, the Global Loyalty Programs Market recorded a compound annual growth rate (CAGR) of 11.8% and is believed to increase to a record high CAGR of 12.2% during 2022-2026. This expected increase is believed to be a consequence of the consumer’s inclination towards reward programmes and will be most prominent in the Asia Pacific region, due to the large population and rapid digitalisation. 

Loyalty programmes give merchants the ability to establish a relationship with their customers, increase/repeat sales, retain customers, and drive product usage.


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Keywords: cryptocurrency, NFT, ecommerce, web3, loyalty programme
Categories: DeFi & Crypto & Web3
Companies: Starbucks
Countries: United States
This article is part of category

DeFi & Crypto & Web3

Starbucks

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