What Type of Loyalty Play Does Starbucks Odyssey Represent?

Starbucks disclosed that Starbucks Odyssey, its Web3 platform built with Polygon in the US, combines the Starbucks Rewards loyalty program with an NFT mechanism and is expected to launch within the year. US members and employees can earn digital collectible stamps through interactive activities, unlock unique experiences, and buy NFTs with a credit card without a crypto wallet.

Coffee is made from beans, but loyalty is made from perks. Alongside Odyssey, Starbucks announced two US-only employee benefits: a student loan management service and My Starbucks Savings, a savings account launched with Fidelity that lets eligible partners deposit part of their pay. The moves come just before Investor Day, when reinvention strategy questions are expected to get clearer answers.

Ahead of its Investor Day, Starbucks disclosed the latest developments in its employee benefits and customer loyalty programs. Among them, the Web3 platform "Starbucks Odyssey," built in partnership with Polygon in the US, is particularly noteworthy. The platform combines Starbucks Rewards with an NFT mechanism and is expected to launch within the year, allowing US members and employees to earn digital collectibles through interactive activities and unlock unique experiences. Members can also purchase NFTs with a credit card, without needing a crypto wallet, lowering the barrier to entry. At the same time, Starbucks also introduced two benefits available only to US employees: student loan management and the My Starbucks Savings account. This article will sort through the details of these new programs and the intentions behind them.

Starbucks' "Investor Day" event is about to take place, and many questions about its reinvention strategy and the unionization process at US stores are expected to receive clearer answers soon. Just before the event officially begins, Starbucks has already disclosed some information in advance, covering two areas: employee benefits and customer loyalty programs.

First, looking at the employee benefits section , Starbucks announced two benefit measures this time. The first is a student loan management service, aimed at helping eligible partners manage and optimize their student loan repayment process more effectively. The second is a personal savings account benefit. Starbucks has partnered with Fidelity to launch a new savings plan—My Starbucks Savings. Eligible US business partners can deposit part of their pay into a personal account to prepare for possible future financial needs.

However, it should be noted that these two employee benefits are limited to Starbucks employees in the United States.

Next, looking at the customer loyalty program , Starbucks has chosen to partner with Polygon to jointly launch the Web3 platform "Starbucks Odyssey." This platform integrates Starbucks' loyalty system, Starbucks Rewards, with an NFT platform and is expected to officially launch later this year. At that time, Starbucks Rewards members and Starbucks partners (i.e., employees) in the United States will be able to earn and purchase digital collectible stamps in the form of NFTs, thereby unlocking exclusive experiences and rewards.

In Starbucks' existing loyalty rewards mechanism, consumers accumulate "Stars" through spending and then redeem them for benefits such as free drinks. According to Starbucks' introduction, Starbucks Odyssey will be industry-leading, allowing loyal customers to participate in a series of activities within the platform, take on interactive tasks and fun challenges, and in the process deepen their understanding of coffee and the Starbucks brand. When members complete these activities, they can gain early access to digital collectibles presented in the form of NFTs.

In addition, members can also purchase these NFT collectibles through the marketplace built into the platform. Although these NFTs are hosted on the Polygon blockchain, purchases support credit card or debit card payment, without the need for a cryptocurrency wallet. Starbucks believes this approach can lower the barrier to entry and make it easier for consumers to embrace the Web3 experience.

Different types of NFT collectibles will have corresponding point values based on their rarity. In addition, these NFT collectibles can be bought, sold, and traded within the platform among Starbucks Odyssey members.

The benefits offered by this new platform will go beyond what the existing traditional Starbucks Rewards account and "Stars" can redeem. Points accumulated in Starbucks Odyssey will be converted into unprecedented unique benefits and experiences.

These experiences may take many forms: perhaps a virtual espresso martini-making class, perhaps unique merchandise created in collaboration with an artist, perhaps an invitation to a special event at a Starbucks Reserve Roastery, or even a trip to Starbucks' Hacienda Alsacia coffee farm in Costa Rica.

Looking back over the past few years, Starbucks has been using emerging technologies to bring consumers closer to this industry giant. For example, it introduced Wi-Fi into stores to encourage customers to stay longer; it pioneered the concept of mobile payment before Apple Pay became widespread; and before the COVID-19 outbreak, it had already made online ordering a routine practice.

This time, Starbucks is trying to use emerging technology to reshape the third place, and it has also drawn some negative reviews. Of course, what kind of returns this new Web3-based experience can bring to the company still needs time to be verified.

Currently, customers and Starbucks partners can join the wait list through waitlist.starbucks.com, with a chance to be among the first to gain access to the Starbucks Odyssey experience set to launch later this year.

Image source: Internet

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