Starbucks is testing a new extension of its Starbucks Rewards program called Starbucks Odyssey, which utilizes non-fungible tokens (NFTs) as rewards for completing online games, quizzes, and activities. These NFTs, known as “Journey Stamps,” can be collected and shared within Odyssey’s digital community. While the test is still ongoing, Starbucks is trying to determine how many members are willing to engage in these journeys for NFT rewards.
Interestingly, the initial data suggests that cryptocurrency enthusiasts have been the most active participants in Starbucks Odyssey. This is because NFTs are typically held on the cryptocurrency blockchain, and Starbucks’ stamps are on Polygon. During a test period, when Starbucks offered the option to purchase stamps for $100 each, rather than earning them through journeys, 2,000 stamps sold within minutes. These stamps have been resold on the secondary market for a significant profit.
However, it remains to be seen whether Starbucks Rewards members who are not interested in cryptocurrency or NFTs will be motivated to participate in Odyssey. Some members have expressed that the process of completing challenges and earning points is time-consuming and not worth the effort, especially when compared to receiving discounted or free coffee.
Despite some potential challenges, Starbucks Odyssey could represent a new frontier for loyalty programs. With its large membership base, Starbucks Rewards has the potential to make significant changes in the loyalty landscape. Odyssey offers the opportunity for Starbucks to gain a better understanding of member preferences and to create more personalized rewards. Additionally, by issuing NFTs as rewards, Starbucks could potentially reduce its overall points liability.
It is worth noting that Starbucks has made the stamps accessible by allowing members to purchase them directly with a credit card, without the need for cryptocurrency. This could increase engagement and boost activity within Odyssey’s digital community. By taking this risk and exploring the world of NFTs and cryptocurrency in its rewards program, Starbucks has the potential to pave the way for innovative loyalty programs in the future.
In conclusion, Starbucks Odyssey is an ambitious undertaking that could revolutionize loyalty programs. While it remains to be seen how successful it will be in attracting everyday coffee drinkers, the test has already shown promising results among cryptocurrency enthusiasts. Starbucks’ exploration of NFTs and its willingness to take risks should be applauded, as it opens up new possibilities for loyalty innovation in the industry.
