Starbucks’ Web3 strategy, a touchstone for brand NFT. “The biggest challenge is to articulate the value to the customer.”

With a bearish cryptocurrency market and an uncertain economic outlook, some marketers question whether blockchain-based projects are worth investing time and money in the first place, but Starbucks is a well-known brand. Due to the fact that it is and the company’s track record of digital innovation, there are many eyes watching the Odyssey carefully. According to marketers and industry watchers, Odyssey’s rollout is of interest because it could be an indicator of consumer interest in branded NFTs.

Odyssey, announced in September 2022 and expected to expand in 2023, will make Starbucks one of the leading brands to incorporate NFTs into its loyalty program. As interest in collectible NFTs wanes, some companies are looking to make more use of their digital assets, and initiatives like Starbucks are just beginning to be explored among companies. Odyssey includes a virtual tour of a coffee plantation, Starbucks history learning activities, interactive games, and more. If you collect “stamps” (NFT), you can get benefits such as virtual classes where you can learn how to make espresso martinis, various goods and collaboration works with artists, invitations to Starbucks store events and coffee farms.

Starbucks declined to discuss the details of the Odyssey in an interview, but its CMO Brady Bulwer wrote on his blog that the Odyssey is the “next big innovation” and a way to reward customers. “We are leveraging Web3 technology to reward and connect with our members in ways never before possible, including collectible and owned digital emotes, digital communities, new perks, both physical and digital experiences. It offers an immersive coffee experience and more.”

As an indicator of whether major QSR can utilize Web3

Odyssey was built in partnership with Forum3, the Web3 loyalty platform. Forum 3 is co-founded by former Starbucks Chief Digital Officer Adam Brotman, who knows Starbucks well. In addition to developing Starbucks’ current loyalty program, he also led the design of the mobile ordering and payment system. Starbucks has also partnered with popular NFT marketplace Nifty Gateway.

Marketers in the Web3 space say it’s worth watching to see if Web3 aficionados embrace the entry of brands like Starbucks (or if they feel Starbucks has oversimplified Web3). .

“The launch of Starbucks Odyssey marks the stage where Web3 can be used to take customer engagement to the next level at QSR,” said Israel Mursky, partner at innovation firm House of Attention. It’s a litmus test to determine if it’s in.” “At the same time, it’s testing Starbucks’ ability to build compelling experiences on top of that foundation.”

Marsky said Odyssey’s focus on community building, fan engagement, and consistency with other parts of its existing rewards program and digital platform is right. But his success depends on how inventive the experience ends up being.

The Biggest Challenge Is Maintaining Long-Term Engagement

Lilon Shapira, a former Coinbase investor and now crypto skeptic, said companies should focus on whether Odyssey will succeed as a loyalty program. talk. “You should imitate it if it’s successful, but you can ignore the blockchain part because many companies may never need it.”

Additionally, “users may not realize it’s a blockchain, but it’s just a loyalty program,” Shapira said. “It’s pretty crazy that Starbucks, which is basically trustworthy in the first place, uses blockchain technology to keep track of who owns what and on what system.”

Co-founder Matt Wurst, CMO of brand NFT platform Mint, said the big brands are early adopters of Web3 technology, others are on the sidelines, and they’re just throwing money at it. He said some key groups are looking to see if Odyssey is the “canary in the coal mine,” including investors wondering if it’s worth it.

“There’s also the possibility that Starbucks will implement a data strategy, which could be a lesson for others,” Wurst said. “Either way, the biggest challenge is demonstrating value to customers and sustaining long-term engagement.”

“It’s a clear (CRM) move,” Wurst said. “Whether it’s a loyalty or a membership, the opportunity is there to keep you engaged in many ways. Email has limits. Search behavior has limits. But now ownership. There is a direct way to connect with supporters, regular customers, and shop/restaurant visitors through proof of