Starbucks has recently launched a beta test of its highly anticipated loyalty program called Starbucks Odyssey. This program combines customer rewards with non-fungible tokens (NFTs) and other interactive elements, using the Polygon blockchain to power the experience. As brands consistently find themselves needing to stand out and create their competitive advantage, Starbucks is aiming to build a brand relationship with younger consumers. Join Businessplug in our two-part, in-depth analysis of Starbuck’s newest customer loyalty initiative.
From Starbucks Rewards to Starbucks Odyssey…
The original Starbucks Rewards program was a traditional loyalty program that offered customers rewards such as free drinks and food for making purchases at Starbucks. Customers could earn points for each purchase, which could then be redeemed for rewards. The program was designed to incentivize repeat business and build brand loyalty among Starbucks customers.
The original program allows customers to earn rewards and benefits by making purchases at Starbucks using a Starbucks Card, a physical or digital payment card. These rewards, called “Stars,” are earned based on the amount of money spent at Starbucks and can be redeemed for various perks. The program also includes various tiers, with higher levels of spending resulting in more benefits and rewards. Starbucks Rewards has over 50 million registered users and has proven to be a successful loyalty program for the company. Benefits from extensive participation in the program include free in-store refills of coffee, tea, or iced tea, as well as exclusive access to new menu items and limited-edition products. Members can also receive personalized offers and discounts through the Starbucks app, and can track their progress towards earning rewards and unlocking new benefits.
One of the unique features of the Starbucks Rewards program is the ability to pay for purchases using the Starbucks app, which is linked to the customer’s Starbucks Card. This allows for a seamless and convenient payment experience, as well as the ability to track purchases and earn rewards directly through the app. Overall, the Starbucks Rewards program is designed to create a sense of loyalty and engagement among Starbucks customers, encouraging them to visit the company’s stores more frequently and spend more money. The program has been successful in achieving this goal, with many customers becoming devoted members and regularly participating in the program to earn and redeem rewards.
Starbucks Odyssey, on the other hand, is a Web3 loyalty program that leverages blockchain technology and NFTs to offer a more immersive and interactive experience for customers. In addition to earning points and redeeming them for rewards, customers can also participate in interactive “Journeys” to earn collectible Journey Stamps, which unlock access to a variety of benefits and experiences. These stamps can also be bought and sold on the Odyssey marketplace, set to launch this year (2023). Demand for the program has exceeded expectations and a small group of waitlisted users will be invited to test it and provide feedback.
In conclusion, Starbucks has been successful in creating a sense of loyalty and engagement among customers with their traditional Rewards program. With over 50 million registered users, the program offers a variety of rewards and benefits for customers who make purchases at Starbucks using a Starbucks Card. The program also includes various tiers, with higher levels of spending resulting in more benefits and rewards. Starbucks is now taking customer loyalty to the next level by introducing the Odyssey program, which leverages blockchain technology and NFTs to offer a more immersive and interactive experience for customers. Customers can participate in interactive “Journeys” to earn collectible Journey Stamps, which can be bought and sold on the Odyssey marketplace. Overall, Starbucks is constantly looking for ways to enhance customer loyalty and engagement, making the brand a go-to choice for coffee lovers.
On the next part of this series, we will analyse, relate and differenciate Starbuck’s Web3 customer loyalty initiative to their previous Web2 offering. Click here to read Part 2.