Customer Loyalty: Starbucks’ reward program is arguably the most successful loyalty program in the world, with nearly 60 million rewards customers globally.
The loyalty program drives approximately 50% of all Starbucks revenue.
The Starbucks’ loyalty programme works through incentivising repeat business, upselling, and customer personalisation.
Here’s The Thing: Starbucks are now taking it one stage further with Starbucks Odyssey — the retail brand’s new blockchain-based NFT reward programme.
Starbucks explains Odyssey like this:
“…the opportunity to earn and purchase digital collectible assets (NFTs) that will unlock access to new benefits and immersive coffee experiences.”
To Be Clear: Starbucks Odyssey is adding to, not replacing, their loyalty programme. That’s not going anywhere!
Why Are They Doing This? It makes sense for Starbucks to join other major consumer brands and check out the nascent technologies in the emerging world of Web3.
Here’s Why: Millennials are Starbucks' largest customer segment by far.
Around 50% of Starbucks’ business comes from regular customers aged between the ages of 25 to 40. Gen Z, which is the under 25s, are just behind.
The Point Is: NFTs appeal to, and are better understood by, these two demographics better than any other.
Studies and research show that Gen Z has the most investment experience and general interest in NFTs, followed closely by millennials. Which makes sense, right? That the younger the consumer, the more ‘current’ they will be with the latest tech.
And remember, the first born of the Gen As turn 13 next year!
User Experience: The key to Starbucks’ success is going to be how they bridge the gap between new technologies and all their jargon and general consumer behaviour.
To do this, they’re building a user experience, called "journeys," that hides the underlying tech from their users.
This is the key…