WHY DOES STARBUCKS ODYSSEY BECOME THE PROMISING BLOCKCHAIN LOYALTY PROGRAM?
On September 12, Starbucks officially introduced to the public Starbucks Odyssey — A loyalty application based on a blockchain platform. This app is the successor to Starbucks Rewards which was extremely successful before. Together with NFT (Non-fungible tokens) technology, the company wants to take the customer experience to another level. Starbucks Odyssey was planned to be officially launched in the shopping season later this year.
However, there are some concerns that the project’s just for taking advantage of Web3 term to promote the coffee chain. In order to eliminate skepticism, Brady Brewer — Starbucks’ CMO confirmed to the media that the new system is definitely serious. It shows that the company deeply believes in the successful prospects of its blockchain loyalty program.
Starbucks already has Starbucks Rewards, one of the most successful loyalty systems in the market and generates huge revenue. So, what’s more special about Odyssey for the coffee chain to convert to?
It can be summed up that the new system will enhance the user experience more than ever before. It also helps to build a more sustainable community.
🔹 What would it be like?
To participate in the new system, users only need to log in to the system’s browser or app with their Starbucks Rewards account. Customers do not need to re-register from the beginning.
Once entering the new system, customers will immediately participate in special activities such as interactive games and challenges called “Journeys.” After completing a part of the journey, users will be rewarded with NFTs. This journey is not only for satisfying customers, but also for silently introducing information about the company’s products and other information that Starbucks wants customers to acknowledge.
Also, for some special exclusive NFTs users can buy them from the platform.
All NFTs will be named “Journey Stamps” to make them more user-friendly. Each stamp will have its own percentage of reward points, which can be traded between members of the system thanks to the ownership of blockchain technology. What’s more, some special stamps will be designed by Starbucks in collaboration with artists outside and have their own special benefits for holders.
The current Starbucks Rewards system just gives customers reward points and they can convert them into drinks or food. On the contrary, Starbucks Odyssey is an extremely interesting experience, and more benefits of owning its NFTs, include: buying unique beverages, participating in mixing courses, or receiving products associated with famous artists, and even a tour to Starbucks coffee farms in another country. There are countless promising ideas the company can apply to increase customer engagement and satisfaction, the limit is just the creative level of Starbucks.
🔹 Other values
In addition, for all other businesses in general, the Blockchain loyalty program system overcomes many disadvantages of the traditional loyalty system, such as:
Increase engagement rate
Increase acquisition growth
More engaging redemption options
Cost reduction thanks to smart contracts
Almost instant processing time
Create more business opportunities
More security for customers
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🔹 Challenge and remedy
Besides, there are also some concerns that it is difficult for customers to get used to these new technologies, because the blockchain system requires an e-wallet and basic knowledge about it to be able to use it, so it’s quite difficult for users to get familiar with.
Starbucks solved them by hiding the NFTs technology terms and replacing them with more common words like “Journey”,”Stamp”, etc. The company believes that even though all technology is about blockchain and Web3, users only care about the interface and words on the application, just optimize it as best as possible, customers may not care or need to know what technology is behind it. For the payment aspect, customers can purchase NFTs by debit or prepaid, payment via e-wallet is not required. And the payment is also simplified by paying for packages once.
Starbucks is well-known as a company that makes good use of the achievements of technology to develop its business model. Thanks to the fact that the company is always responsive to new technology trends and knows how to simplify them to easily reach customers as well as optimize the customer experience as much as possible. The blockchain loyalty program could be the next great success for Starbucks, and become the starting gunshot for the future trend of loyalty.
At FADO Go we have our own blockchain loyalty program for our cross-border ecommerce business. We also provide this solution for other companies that are looking for an efficient way to increase Customer Retention Rate and unlock potential business opportunities. Get in touch with us to understand how our loyalty solution could serve your business best.
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