NFTs and Blockchain Are Revolutionizing Customer Loyalty, Introducing a New Era of Digital Rewards

BRB, I’m Drinking My Daily Starbucks in the Metaverse

*Image created partially from the weird depths of my own mind, with help from the power of the artificial intelligence powered tool* ***DALL·E***

The Starbucks Odyssey is finally here— at least for a small round of initial beta testers.

Leveraging blockchain technology and non-fungible tokens (NFTs), Starbucks promises to reward customers in a new way.

This program is the latest example of how retail companies are using NFTs and other digital assets to enhance their customer engagement and loyalty programs.

How The Starbucks Odyssey Works

The Starbucks Odyssey is “a new experience powered by Web3 technology.”

Starbucks customers can complete activities such as playing games, like the fan favorite “Starbucks For Life,” answering trivia questions, and making purchases. Users earn points and digital “journey stamps”, which are NFTs on the Polygon blockchain.

These stamps can then be redeemed for exclusive digital and IRL rewards, such as virtual classes, trips, unique merchandise, and more.

How to Join

To participate in the Starbucks Odyssey program, you need to join the existing Starbucks Rewards Program, and then join the waitlist for the new Starbucks Odyssey Experience.

It’s currently only open to US-based members of their Rewards program, but Starbucks plans to roll it out globally sometime in the coming months.

In my case, I joined the waitlist back in September 2022, when they first announced their plans for the Odyssey, and finally got an invite to the first round of beta testers on December 8th. In the initial email, Starbucks urged me to “begin my journey” within 3 days, or risk forfeiting my spot.

The Use of Blockchain and NFTs

The use of NFTs and other digital assets in the Starbucks Odyssey program shows how retail companies can use these technologies to create unique and engaging experiences for their customers. NFTs, in particular, offer a way for companies to create one-of-a-kind digital assets that are often highly sought-after by collectors.

The scarcity, collectibility, and gamification make NFTs a powerful tool for increasing customer loyalty and engagement.

In addition to the use of NFTs, the Starbucks Odyssey program also incorporates other innovative technologies, such as blockchain and smart contracts. These technologies enable the program to offer secure and transparent rewards that can be easily tracked and verified. This means that customers can be confident that their rewards are genuine and that their points are being accurately credited to their accounts. This new program is a huge leap for Starbucks with a huge fanbase rallying behind their existing loyalty programs.

Starbucks is Perfectly Positioned

While Starbucks is best known for its coffee, it is technically one of the largest banks in the United States, when it comes to the number of active customer accounts. This is because Starbucks offers a prepaid debit card called the Starbucks Card, which is linked to a customer's Starbucks rewards account. Customers can add money to their Starbucks Card and use it to make purchases at Starbucks stores.

Thanks to this fun feature, I don’t even need to bring my wallet to Starbucks anymore— I can just pull out my phone, auto-reload if needed, earn some virtual stars and pay $6+ for a Venti Iced Brown Sugar Oatmilk Shaken Espresso (with light ice) that I could probably make half as good at home for like $1.50, but I digress.

However, it should be noted that Starbucks does not offer traditional banking services— they are primarily focused on rewards and loyalty programs. Still, this puts Starbucks at a huge advantage when it comes to leveraging Web3 tech, as many already store money virtually within the app.

The Tech Behind The Odyssey

According to the official Starbucks FAQ section, “Odyssey Stamps are minted on the Polygon blockchain and stored in Nifty Gateway's secure, custodial Omnibus wallet.”

For now, it seems that users won’t have to actually interact with any cryptocurrencies in order to play. In fact, Starbucks has stated that users don’t need to have an existing wallet to interact with the Odyssey, and users can buy stamp NFTs using their credit card— with no need to hold any crypto.

Joe O’Rourke, one of the co-founders of Forum3, a Web3-powered loyalty platform, that partnered with Starbucks to help bring this program to life, joined a Twitter Space by Rug Radio on December 9th. He provided some much-needed clarity on how Starbucks is handling crypto wallets. “There will be a custodial and non-custodial option,” he noted. “The importance of user experience and ease of use is super, super important. You'll be able to connect your MetaMask or your Rainbow wallet or anything like that, and you'll be able to actually pull your stamps off, and trade them on OpenSea. We'll also have a Starbucks Odyssey-hosted marketplace.”

Why Web3?

Many critics of Web3 tech don’t see the appeal— but Starbucks has been on the cutting edge of tech for years when it comes to their mobile app. It’s no surprise that they’re looking to hone in on this new digital frontier. Joe and the team at Forum3 certainly see the opportunities— especially when it comes to scaling traditional loyalty programs. “Blockchain technology provides rails for customers to truly own their loyalty and relationship with a brand and be rewarded,” Joe shared.

The Starbucks Odyssey program is an exciting development that showcases the potential of NFTs and other digital assets in the retail sector— and its creation has definitely been a labor of love, even in this early phase of development. “It truly took a village to bring the Starbucks Odyssey program to life. We had many partners and stakeholders come together to solve a myriad of cross-functional challenges in a relatively short amount of time,” said Joe. It is likely that we will see more and more companies adopting similar strategies to create engaging and rewarding experiences for their customers.

The Future of Retail and NFTs

The Starbucks Odyssey program is just one example of how retail companies are using NFTs and other digital assets to enhance their customer engagement and loyalty programs. As the use of these technologies continues to grow and evolve, it is likely that we will see more and more companies adopting similar strategies to create unique and engaging experiences for their customers. In the future, we may even see the emergence of new retail business models that are built entirely around the use of NFTs and other digital assets.

Whether you are a loyal Starbucks customer or just someone who is interested in the future of retail, the Starbucks Odyssey is definitely worth checking out.

If you need me, I’ll be playing Starbucks For Life and racking up some Odyssey points while sippin’ on my Venti Iced Brown Sugar Oatmilk Shaken Espresso (with light ice).

Starbucks Odyssey: The Future of Retail Innovation