Starbucks expand loyalty program with NFTs

Starbucks’ Reward program demonstrates the power of customer loyalty

Starbucks’ Reward program is arguably the most successful loyalty program in the world, with almost 30 million US customers and nearly 60 million Rewards customers globally. The loyalty program drives approximately 50% of all Starbucks revenue through incentivising repeat business, upselling, and customer personalisation.

In December 2022, Starbucks announced they were taking the loyalty program one stage further with Starbucks Odyssey, the retail brand’s new blockchain-based NFT reward program.

Starbuck’s explain it as:

“…the opportunity to earn and purchase digital collectible assets (NFTs) that will unlock access to new benefits and immersive coffee experiences.”

The thing is that this is a bold move by a consumer brand with a lot to lose if the NFT experiment goes wrong. Remember, NFTs are still in the nascent stage of their evolution, and the Odyssey beta, which is serving as a testing ground for the brand, highlights both the challenges and opportunities of being a first mover.

To be clear, Starbucks Odyssey is adding to, not replacing, their loyalty programme, that’s not going anywhere!