04/10/2023 Starbucks Odyssey Gives Reward NFTs. Will Coffee Drinkers Care?

Starbucks Odyssey Gives Reward NFTs. Will Coffee Drinkers Care?
known as Odyssey, that points NFTs. Will espresso drinkers combine its required journeys into their each day habits?

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Let’s assume that the majority Starbucks SBUXRewards members are common espresso drinkers. What number of can be keen to surrender a free Grande Pumpkin Latte for a non-fungible token, or NFT NFT?

Starbucks is evidently aspiring to determine that out. The espresso big has since December 2022 been testing an formidable extension of its Starbucks Rewards program, known as Starbucks Odyssey, that’s asking common Grande Americano-with-room drinkers in the event that they need to go on a journey with Starbucks.

By finishing these journeys – on-line video games, quizzes and actions – members earn “collectible ‘Journey Stamps’ [NFTs] and Odyssey Factors” that present entry to “immersive espresso experiences that they can not get anyplace else,” Starbucksexplainsin a December 2022 information publish. Members can share their experiences, and their earned NFTs, in Odyssey’s related digital group.

The check, which is opening in phases to waitlisted members and staff, ought to distinguish what number of members are keen to take journeys for NFTs. To date, the stamps reportedly have been sizzling with no less than one section of the check group. Are you able to guess which?

Which Comes First, The Crypto Or The Espresso?

For those who guessed cryptocurrency fans, you’re proper. These buyers have been eager individuals of Starbucks Odyssey, due to the NFT reward bait.

It is because NFTs are usually held on the cryptocurrency blockchain; Starbucks’ stamps are onPolygon MATIC. Right here’s an instance of that crypto/NFT enthusiasm: Within the spring, when Starbucks Odyssey supplied check members an opportunity to purchase the stamps for $100 every – moderately than earn them through journeys –2,000offered inside minutes, Time reported.

Consumers evidently wagered that the worth of the NFTs would climb. Positive sufficient, many Starbucks stamps had been resold for a nifty revenue – some for almost$2,000a chunk – on the secondary market, in response to Decrypt.

Nonetheless, it’s not clear if the Odyssey check is stimulating Starbucks Rewards members to undertake NFTs as a perk, or if it’s merely attracting extra NFT and cryptocurrency followers to turn out to be Starbucks Reward members

officer Brady Brewer introduces, Starbucks Odyssey, an NFT-based rewards program, throughout Starbucks Investor Day in Seattle. (AP Picture/Stephen Brashear)

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An Odyssey To Loyalty’s New Frontier

Is Starbucks Odyssey the mannequin for next-generation loyalty packages? With31.4 millionlively U.S. members, Starbucks Rewards actually has the scale to make potential change.

So let’s unpack the weather of Odyssey to see what the journey holds.

Higher member understanding.The actions within the Odyssey check are designed to interact members for prolonged occasions and might be designed to study specifics about member preferences. A number of the “challenges” require making purchases over a number of weeks or months or shopping for from a number of places. All of that information will get robotically tracked and recorded through the loyalty app. These insights can inform methods that parlay Starbucks’ present rewards construction into one thing richer for the corporate and its members. Starbucks said, in its December 2022 announcement, that it’s going to collaborate with members and staff to “co-create the way forward for the expertise.” Nonetheless, if solely a slim share of complete members stay engaged, the worth of the insights is proscribed.

Uniquely distinctive rewards. Sure, Odyssey NFTs are one-of-a-kind, and by amassing them, members can aspire to make a revenue on the secondary market. A few of these new adopters may turn out to be common Starbucks clients. Convincing common Joes to take part in Odyssey would possibly take extra work, nevertheless. As one latest consumer described it to me: “I needed to spend 20 minutes watching movies after which taking a quiz. You don’t get your factors until you get it 100% right. I’ve but to finish a problem as a result of every requires a further job, like visiting a location with a digital camera telephone, or making $5 in purchases for a number of weeks in a row. It’s a whole lot of hoops to leap via. All individuals need is discounted/free espresso!”

A probably much less liable type of forex.Every Starbucks Odyssey stamp comes with one bonus level. If one level is earned on a journey, versus a number of factors via the acquisition of a Venti Frappuccino, then Starbucks may situation fewer factors general. This would scale back the variety of excellent factors on its stability sheet – a profit for Starbucks as a result of unused factors are recorded as a debt, or legal responsibility. Starbucks additional tempts Odyssey members to make use of their factors to entry different advantages and experiences, a gaming tactic that might guarantee factors transfer steadily off the stability sheet.

There’s multiple method to earn stamps.In line with Starbucks’ 2022 announcement, Odyssey individuals may buy stamps immediately with a bank card – no cryptocurrency required – which permits them to skirt the journey. Odyssey’stermsand circumstances additionally specify that it could periodically make limited-edition stamps accessible for buy. This selection would make it simpler for NFT followers and buyers to get what they need sooner, and that ought to increase engagement. Nonetheless, this feature additionally reduces the variety of individuals interacting with Starbucks via its video games and different experiences. One idea: Maybe by making the stamps extra accessible, Starbucks expects to stimulate extra exercise in Odyssey’s digital group, which might produce beneficial peer-to-peer insights.

Starbucks Is Taking A Threat. Isn’t That Grande?

Starbuck’s Odyssey is, after all, nonetheless unfolding, so we will solely guess what the check suggestions will produce. One level is tough to argue, nevertheless: Starbucks Odyssey is an pioneering effort; one which few, if any, nationwide rewards packages have risked.

For taking the danger, different program operators ought to thank Starbucks in a method that advantages all of them. How a couple of spherical of Pumpkin Spice Lattes for their very own loyalty innovation groups? It’s not a journey, however it ought to get a stamp of approval.