Sep 16, 2022
Starbucks is revamping its loyalty program and bringing an NFT platform into the mix, though it doesn’t use that acronym to describe its digital art offerings.
Starbucks recently announcement its new digital community called Starbucks Odyssey, which will launch later this year, according to Tech Crunch. Users will be able to log in with their loyalty app credentials and then participate in in-app games and challenges called “trips”.
Visitors who successfully complete goals and complete journeys will be rewarded with NFTs (which can also be purchased and traded on a marketplace). Digital collectibles will be referred to as “Travel Stamps” on the Platform.
Visitors will also be able to unlock perks by accumulating stamps. Starbucks views perks as more important than the free food and drinks typical of loyalty programs. Expected rewards include access to unique courses or merchandise or, at the higher end, invitations to exclusive and even international events. The highest tier rewards should go to those who purchase the most expensive NFTs, but the lower tiers will be available to those who earn their stamps in-app.
A number of retailers and brands have started experimenting with “Web 3” technologies like NFTs.
pacsun late last year offered its first collection and followed this year with two sets of NFT “Mall Rats,” which depict cartoon rats wearing Pacsun products. One of the Mall Rats collections was made in collaboration with Reebok.
And Nike went so far as to acquire an NFT creative studio called RTFKT (pronounced “artifact”), which made a name for itself by selling virtual sneakers made in collaboration with artists for tens of thousands of dollars.
But NFTs have also proven controversial for a number of reasons. In the world of art collecting, some have become skeptical as to whether “owning” an NFT is really comparable to owning an original work of art.
The amount of energy required to strike NFTs has also raised environmental concerns. The UK branch of the World Wildlife Foundation has been criticized by conservationists for launching an NFT line, which it quickly canceled due to a backlash, Climate Change News reported. The cancellation created an opposing backlash from NFT collectors.
DISCUSSION QUESTIONS: Do you consider Starbucks’ implementation of NFTs to be worth the company’s investment given the controversy surrounding the technology? What other ways could a retailer use “Web 3” technology to improve their loyalty program?
“Do you consider Starbucks’ implementation of NFTs to be worth the company’s investment given the controversy surrounding the technology?”
