Starbucks Odyssey is the coffee chain's first venture into building with web3 technology. The new experience combines the company's successful Starbucks Rewards loyalty program with an NFT platform, allowing its customers to both earn and purchase digital assets that unlocks exclusive experiences and rewards
The company had earlier teased its web3 plans to investors, saying it believed this new experience would build on the current Starbucks rewards model where customers today earn stars which can be exchanged for perks. Starbucks Odyssey is intended to be a way for its most loyal customers to earn a broader set of rewards.
The architect of the Mobile Order & Pay system and the Starbucks app was brought in by Starbucks to help with the development of the project. Starbucks Odyssey was co-developed by the team at Forum3 and the Seattle coffee chain's own marketing, loyalty, and technology teams.
Starbucks was involved in the project for around six months, according to Brady Brewer, the company's chief marketing officer. He said the company wanted to invest in this area, but not as a stunt side project. Rather, it wanted to find a way to use the technology to improve its business.
It chose to make NFTs the passes that allow access to this digital community, but it is trying to hide the nature of the technology underpinning the experience in order to bring in more consumers.
The customer may not be aware that what they are doing is interacting with a new technology. Brewer says it's just the right thing to do.
Starbucks rewards members will be able to log in to the web app with their credentials.
They will be able to engage with various activities once there, such as playing interactive games or taking on challenges designed to deepen their knowledge of the Starbucks brand. Early digital collectibles can be found in the form of NFTs. Starbucks Odyssey doesn't use tech jargon and instead calls these NFT collectibles "journey stamps"
The Starbucks Odyessy web app can be used to purchase a set of limited-edition NFTs. A credit or debit card will be used to purchase these NFTs, which are hosted on the PolygonBlockchain. The company thinks this will make it easier for consumers to engage with the web3 experience. It will not make transactions more complicated with things like gas fees.
The company isn't ready to say how much its NFTs will cost or how many will be available.
The various "stamps" will include a point value based on their rarity and can be purchased or sold among Starbucks Odyessy members in the marketplace. The artwork on the NFTs is being co-created by Starbucks and outside artists, and a portion of the proceeds from the sale of the limited- edition collectibles will be donated to support causes chosen by Starbucks employees and customers.
Points can be gained by collecting stamps.
You can earn rewards with a traditional Starbucks account. Points earned in Starbucks Odyessy will translate into experiences and other benefits, even though members can earn things like free coffee, free food, or select merchandise.
It could be a virtual espresso martini-making class or access to unique merchandise. You can earn invites to special events hosted at Starbucks Reserve Roasteries if you accumulate more points. It is expected that the biggest perks will be reserved for those who purchase NFTs.
An earned NFT could offer the tour alone with flights and hotels left up to the user, while a paid NFT could offer the tour with flights and hotels. Starbucks hasn't made a decision on this front.
The company can say that it wants to integrate the program with its existing loyalty rewards beyond using the same user account credentials.
Starbucks is imagining how some of the activities that earn NFTs will connect to real-world Starbucks purchases, according to Brewer.
A real-world activity like trying three things on the espresso menu can earn users NFTs in Odyssey. The user would need to show their barcode at the checkout to have their transaction counted. At launch, the company is still figuring out what games, challenges, and quests will be included.
There will be experiences that link directly to customers' behavior in our stores. The company wants to make gaining NFTs something anyone can do, not just those with money to blow on digital collectibles, as is often the case with current NFT communities.
People will be able to earn rewards without spending a lot of money. We want to make this easy to navigate. Virtual classes and access to limited edition merchandise will be some of the experiences customers can earn. There will be a wide range of experiences.
Starbucks decided to use the "proof-of-stake" technology built by Polygon because it uses less energy than the first generation "proof-of-work" technology.
It makes sense for a company known for taking advantage of emerging technologies to enter the world of web3. In the past, Starbucks encouraged customers to spend more time in the store by providing free wi-fi. The idea of a mobile wallet was pushed before Apple Pay. It made mobile ordering the norm before the Covid outbreak.
Many traditional businesses are criticized for entering the web3 market as a marketing stunt rather than a real endeavor. Only time will tell if Starbucks is serious about its interest.
Brewer believes that the future of these technologies will enable experiences that were not possible before. As the web3 market changes he wants to be flexible and move with the customers. We need to look at it for the long-term. We are committed because we are plugging it into our massive scale rewards program.
On September 12th, the company says its web3 platform will open its waitlist. The platform will be opened more broadly next year.
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