How the new Web3 loyalty program at Starbucks will be a litmus test for the future of branded NFTs

By Marty Swant

When it comes to digital innovation, Starbucks has been a pioneer on a number of fronts. Some say its new Web3 loyalty program will be a litmus test far beyond the world of coffee.

On Thursday, the coffee giant announced the beta launch of Starbucks Odyssey, the company’s first major attempt at integrating blockchain tech into its existing rewards program. Starting with a small group of U.S. members and employees — the exact number wasn’t disclosed — Starbucks will invite participants into “journeys” that allow them to collect NFTs and points that unlock new benefits and experiences.

The ongoing crypto bear market and a backdrop of economic uncertainty have some marketers questioning if it’s even worth spending time and money on blockchain-based projects. However, Starbucks’ brand ubiquity and history of digital innovation put Odyssey even more under the microscope. Marketers and industry observers say they are watching the rollout of the program as it could be a bellwether for how much consumers are willing to care about branded NFTs.

Odyssey — which was first announced in September and that will expand to more people in January 2023 — makes Starbucks one of the largest brands to integrate NFTs into its loyalty program. That’s something companies have begun exploring while others look for ways to make digital assets more useful as interest fades for collectible NFTs. Activities will include taking a virtual tour of a coffee farm, learning about Starbucks history and playing interactive games. The rewards for collecting “stamps” (NFTs) include virtual espresso martini-making classes, access to merchandise and artist collaborations and invites to events at Starbucks stores and coffee farms.

The company declined an interview to elaborate on Odyssey. However, in a blog post, Starbucks CMO Brady Brewer described it as the “next big innovation” and a way to reward customers. “We are leveraging Web3 technology to reward and connect with our members in new ways, such as offering collectible, ownable digital stamps, a new digital community, and opening access to new benefits and immersive coffee experiences — both physically and digitally.”

Odyssey was built with the help of Forum3, a Web3 loyalty platform co-founded by someone who knows the brand very well: former Starbucks chief digital officer Adam Brotman. He developed the coffee giant’s existing loyalty program and also led the design of its mobile ordering and payment systems. Starbucks is also partnering with Nifty Gateway, a popular NFT marketplace.

Some marketers in the Web3 space say it’ll be worth paying attention to whether Web3 enthusiasts are open to a brand like Starbucks entering the space — or whether they feel the brand has over-simplified it.

“The Starbucks Odyssey launch is a litmus test for Web3’s readiness to help a major QSR brand take customer engagement to the next level,” said Israel Mirksy, a partner at the innovation firm House of Attention. “As much as it is a test of the brand’s ability to build compelling experiences on top of that foundation.”

According to Mirsky, Starbucks is right to focus …read more

Source:: Digiday