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Starbucks Odyssey - NFT-based Customer Loyalty Program

Sector: Tertiary sector · Industry: Retail · Organisation: Starbucks · Maturity level: Pilot

Starbucks Odyssey was an NFT-based extension of the existing Starbucks Rewards program that used Journey Stamps as collectible digital assets. The program ran as a closed beta on the Polygon blockchain from late 2022 until March 2024 and was then discontinued due to low adoption and high complexity. Starbucks plans to use the insights gained to redesign the program.

Documentation status

Description

Starbucks Odyssey was an extension of the Starbucks Rewards programme with NFT-based Journey Stamps on the Polygon blockchain, developed with the Web3 company Forum3. Polygon Labs paid 4 million US dollars for the partnership. Members earned stamps through purchases, videos and quizzes; stamps could also be bought directly. The stamps granted access to exclusive experiences such as trips to Starbucks’ coffee farm in Costa Rica, virtual classes and merchandise.

Starbucks Odyssey launched in December 2022 in a closed beta test as an extension of the established Starbucks Rewards programme. Technically, it was based on the Polygon blockchain; Polygon Labs paid 4 million US dollars for the partnership. The programme was developed with Forum3, whose co-founder Adam Brotman was formerly Chief Digital Officer at Starbucks. The system offered two parallel loyalty currencies: Journey Stamps (NFTs, tradable on the secondary market) and Odyssey Points (non-tradable). Stamps were earned through activities (Journeys) or bought directly. At its peak in early 2023, some stamps traded for up to 2,000 US dollars on secondary markets. At peak, there were over 58,000 active participants at Level 1. On 15 March 2024, Starbucks announced the termination of the beta programme as of 31 March 2024. Reasons: falling NFT market prices (floor prices dropped 72-86% below issue price), insufficient user participation, too high complexity compared to the simple Starbucks Rewards system. The learning curve: NFT-based loyalty needs a clearer “why” answer, seamless integration into the core programme and less friction for mainstream consumers.

Perspectives

B2B — organisations perspective

For brands, Starbucks Odyssey is a valuable learning example: NFT loyalty only delivers added value if the tokens are clearly tradable, the rewards complement rather than run parallel to the core loyalty programme, and onboarding for non-Web3-native users is seamless.

B2C — consumers perspective

Consumers were able for the first time to own, trade and resell loyalty assets — stamps were listed on Nifty Gateway. The top reward (Tier 5) was a trip to Starbucks’ coffee farm in Costa Rica for the 20 most active users.

Employees perspective

Employees need to understand new technologies and support customers with Web3 concepts, which requires additional training. The complex technology can lead to increased support effort and customer complaints.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

The programme used the Polygon blockchain, a scalable and cost-effective Ethereum sidechain suitable for high transaction volumes. Integration was via Nifty Gateway as the NFT marketplace, with customers not needing their own crypto wallet.

Implementation examples

Starbucks Odyssey NFT Loyalty Programme

Starbucks wanted to expand its traditional loyalty programme through innovative Web3 technology and create new digital customer experiences. The company sought ways to strengthen customer loyalty and differentiate itself in a competitive market.

Starbucks implemented an NFT-based loyalty programme with Journey Stamps on the Polygon blockchain as an extension of the existing Rewards programme.

Starbucks launched a closed beta version of the Odyssey programme at the end of 2022, which used Journey Stamps as NFTs. The implementation was on the Polygon blockchain in partnership with Nifty Gateway, enabling customers to trade digital assets without needing their own wallet. The programme ran for 15-18 months and was discontinued in March 2024 due to low adoption and high complexity.

The programme aimed to push beyond the limits of traditional loyalty programmes and enable new forms of customer interaction. Starbucks also wanted to invest early in Web3 technologies to gain market advantages.

Tags

NFT, Customer Loyalty, Loyalty Programme, Web3, Polygon

Sources

  1. Lessons from Starbucks Odyssey NFT
  2. What marketers can learn from Starbucks' NFT loyalty lessons
  3. Starbucks shutters Odyssey, its NFT-backed metaverse program