Starbucks is at present formally introducing Starbucks Odyssey, launching later this 12 months — the espresso chain’s first foray into constructing with web3 expertise. The brand new expertise combines the corporate’s profitable Starbucks Rewards loyalty program with an NFT platform, permitting its prospects to each earn and buy digital property that unlock unique experiences and rewards.
The corporate had earlier teased its web3 plans to traders, saying it believed this new expertise would construct on the present Starbucks Rewards mannequin the place prospects at present earn “stars” which will be exchanged for perks, like free drinks. It envisions Starbucks Odyssey as a means for its most loyal prospects to earn a broader set of rewards whereas additionally constructing neighborhood.
To develop the undertaking, Starbucks introduced in Adam Brotman, the architect of its Cellular Order & Pay system and the Starbucks app, to assist function a particular advisor. Now the co-founder of Forum3, a web3 loyalty startup, Brotman’s group labored on Starbucks Odyssey alongside the Seattle espresso chain’s personal advertising and marketing, loyalty, and expertise groups.
Whereas Starbucks had been investigating blockchain applied sciences for a few years, it has solely been concerned on this specific undertaking for round six months, Starbucks CMO Brady Brewer instructed TechCrunch. He says the corporate needed to speculate on this space, however not as a “stunt” aspect undertaking, as many firms are doing. Relatively, it needed to discover a means to make use of the expertise to boost its enterprise and increase its present loyalty program.
It opted to make NFTs the passes that permit entry to this digital neighborhood, but it surely’s deliberately obscuring the character of the expertise underpinning the expertise as a way to convey in additional customers — together with non-technical folks — to the web3 platform.
“It occurs to be constructed on blockchain and web3 applied sciences, however the buyer — to be sincere — might very effectively not even know that what they’re doing is interacting with blockchain expertise. It’s simply the enabler,” Brewer explains.
To interact with the Starbucks Odyssey expertise, Starbucks Rewards members will log in to the online app utilizing their present loyalty program credentials.
As soon as there, they’ll be capable of interact with numerous actions, which Starbucks referred to as “journeys” — like enjoying interactive video games or taking over challenges designed to deepen their data of the Starbucks model or espresso basically. As they full these journeys, members can early digital collectibles within the type of NFTs (non-fungible tokens). Starbucks Odyssey, nevertheless, does away with the tech lingo and calls these NFT collectibles “journey stamps” as a substitute.
Moreover, a set of limited-edition NFTs might be out there to buy within the Starbucks Odyessy internet app, which additionally works on cell units. Although hosted on the Polygon blockchain, these NFTs might be purchased utilizing a credit score or debit card — a crypto pockets just isn’t required. The corporate believes this can make it simpler for customers to interact with the web3 expertise by decreasing the barrier to entry. It additionally received’t complicate customers’ transactions with issues like “gasoline charges,” preferring to supply a bundled value.
The corporate just isn’t but able to share what its NFTs will price or what number of might be out there at launch, saying these are selections which might be nonetheless being ironed out.
Nevertheless, the varied “stamps” (NFTs) will embody some extent worth primarily based on their rarity and will be purchased or offered amongst Starbucks Odyessy members within the market, with the possession secured on the blockchain. The paintings on the NFTs is being co-created by Starbucks and outdoors artists, and a portion of the proceeds from the sale of the limited-edition collectibles might be donated to assist causes chosen by Starbucks workers and prospects.
By accumulating the stamps, members will achieve factors that may unlock unique advantages.
These perks transcend these you’ll be able to earn with a conventional Starbucks Rewards account and its “stars.” Whereas at present, members can earn issues like free espresso, free meals, or choose merchandise, the factors earned in Starbucks Odyessy will translate into experiences and different advantages.
Picture Credit: Starbucks Hacienda Alsacia (opens in a brand new window)
On the decrease finish, that may very well be a digital espresso martini-making class or entry to distinctive merchandise and artist collaborations. As you achieve extra factors, you might earn invitations to particular occasions hosted at Starbucks Reserve Roasteries, and even earn a visit to the Starbucks Hacienda Alsacia espresso farm in Costa Rica. It’s anticipated the very largest perks might be reserved for many who buy NFTs, although lesser variations could also be supplied to those that earn their means up.
For example, a paid NFT may supply the total journey bundle and farm tour, whereas an earned NFT may supply the tour alone with flights and motels left as much as the consumer. Starbucks hasn’t made any formal selections on this entrance, nevertheless.
However what the corporate can say is that it needs to deeply combine this system with its present loyalty rewards, past merely utilizing the identical consumer account credentials for each applications.
Brewer says Starbucks is already imagining how among the actions that earn NFTs might be related to real-world Starbucks purchases, as an example.
In Odyssey, customers earn NFTs by doing challenges, which could additionally embody a real-world exercise like “strive three issues on the espresso menu.” This might require the consumer to point out their barcode at checkout — as they might if incomes stars — to have their transaction counted in the direction of the Starbuck Odyssey problem. The corporate remains to be figuring out what mixture of video games, challenges, and quests it’ll embody at launch.
“However we’ll have experiences that do hyperlink on to prospects’ conduct in our shops,” Brewer stresses. Most significantly, the corporate needs to make gaining NFTs one thing anybody can do — not simply these with cash to blow on digital collectibles, as is commonly the case with present NFT communities, which value out the typical consumer.
“There might be a variety of methods for folks to earn [rewards] with out having to spend some huge cash,” says Brewer. “We need to make this tremendous straightforward and accessible. There might be loads of on a regular basis experiences prospects can earn like digital courses or entry to restricted version merchandise, as an example. “The vary of experiences might be fairly huge and really accessible,” he provides.
Starbucks says it explored all of the totally different blockchains for the undertaking however landed on the “proof-of-stake” blockchain expertise constructed by Polygon for this effort as a result of it makes use of much less power than first-generation “proof-of-work” blockchains, which is extra in keeping with its dialog targets.
Picture Credit: Starbucks (opens in a brand new window)
The concept to enter into the world of web3 is smart for a corporation recognized for profiting from rising applied sciences and making them extra approachable and straightforward for customers to entry. In years previous, Starbucks launched Wi-Fi in its shops to encourage prospects to spend extra time throughout visits. It additionally pushed the concept of cell wallets lengthy earlier than Apple Pay grew to become ubiquitous. And it made cell ordering the norm effectively forward of the Covid pandemic, when different restaurant chains picked it up.
However one criticism leveraged towards many conventional companies once they enter the web3 market is that they’re approaching it as a advertising and marketing stunt, not an actual endeavor. Starbucks, after all, argues that’s not the case right here — however solely time will inform how severe its curiosity could also be.
“We’re bullish on the way forward for these applied sciences enabling experiences that weren’t attainable earlier than,” Brewer claims. The intention is to be versatile and transfer with the purchasers because the web3 market adjustments, he explains. “It’s actually vital that we’re it for the long-term,” he continues. “However, on condition that we’re plugging it into our industry-leading, large scale rewards program — we’re dedicated,” he says.
The corporate says its web3 platform will open its waitlist (waitlist.starbucks.com) on September 12 and can launch later within the 12 months. It’s going to take away the waitlist and open the platform extra broadly someday subsequent 12 months.
