What can we learn from the Starbucks Odyssey NFT loyalty program?

Non-fungible tokens (NFTs) are some of the latest technological developments that can make any physical object a digital one with intrinsic value. Developers leverage these digital assets in 

the form of art, music, or even land, which makes them essential in the crypto space.

NFTs became notorious during the pandemic and have expanded ever since, with creators and artists using them to reach a new customer audience. Since each NFT is unique, investors who hold them benefit from guaranteed quality and value. This is why some NFTs became so expensive, with the most notable one being The Merge, a collection sold for $91,806,516.

NFTs are important for the crypto industry because they create a tool for investors to diversify their portfolios. Trading NFTs requires having crypto in your portfolio, and ETH is the most common coin required by creators. 

Considering their popularity, NFTs also became helpful for renowned companies that took advantage of the trend and introduced them through advertising and product acquisition. 

Clothing companies, for example, created NFT collection pieces for users to add to their crypto wallet after they buy Ethereum with bank transfer. Another popular strategy includes NFT loyalty programs, such as Starbucks', whose attempt brought insight into the world of decentralization.

Here’s what we can learn from it. 

Close up of a businesswoman using mobile phone and holding paper cup. Close-up detail of a businesswoman hand holding paper cup and using a smartphone

What is the Starbucks Odyssey program?

The company launched the Starbucks Odyssey program in December 2022, which was an extension of the Rewards system, only that it involved NFT, especially based on the Ethereum blockchain. These assets can now be found on exchanges, where participants in the decentralized rewarding program involved in the beta program could buy NFT and Odyssey points when purchasing or watching related videos.

At the same time, the program offered users Stamp NFTs to earn Odyssey Points, which can be used for virtual classes or exclusive merchandise. This would be meant to keep dedicated and loyal company fans engaged.

However, the project flopped in March 2024, with the team behind it stating that Starbucks would develop the program to evolve its approach. Some consider the company too late to the game, providing NFTs when they were already mainstream in the market.

On the other hand, users’ perspective offers us a unique insight into the issue. While Odyssey was innovative, it made customers spend too much time watching videos or taking quizzes. In addition, they needed to make constant purchases to receive free points.

Starbucks Odyssey had a great potential 

If properly introduced, the Starbucks Odyssey could evolve from the beta program, leveraging Ordinals and other innovative assets. The Polygon-based strategy failed to make all active participants pay Starbucks customers. Around 58,000 people were part of a community on Discord who were part of the program. Still, many were unsatisfied with the communication strategy since the company shut down. Moreover, the program canceled people’s “stamps” without further notice, although it was stated that users could leverage the rest of their points until the end of March, when they’ll expire. 

Still, the team behind it will continue exploring methods of introducing decentralization and web3 features again in the future, having learned how this industry works. It may be possible for them to integrate NFTs into the regular Reward program instead of developing something different. Some leaks on the internet gave insight into a potential NFT project called ‘STARBUCKS STAR★LIGHT’ that encourages clients to buy drinks with a personal cup and earn the “Eco Stamp” and exchange them for NFTs. 

Have NFTs become obsolete? 

Although the NFT market slowed down recently, with media focusing on assets like ETFs or events such as the halving, they’re still valuable. Many artists continued working with NFTs to showcase their talent and make themselves famous in these communities. 

Other trends simply overtook the NFT craze. The AI topic has exploded in the past year, and investors, customers, and regular users have focused on it more. At the same time, people were excited to try AI tools to create art, so human-based NFTs and art pieces weren’t that interesting anymore. 

On the other hand, NFTs became less popular in the media since companies adopted them as conventional tools instead of making a big deal out of it. Customers are already used to these assets and technologies, so announcing an NFT advertisement isn’t a break in the market anymore. Coca-Cola, Nike, and Gucci successfully innovated their industries by combining Web2 and Web3 so clients could experience unique digital adventures. 

There are many reasons why NFT projects fail 

Introducing NFTs into our digital world, where traditional marketing is still frequented, can be challenging, especially for companies late to the game. However, many businesses are learning from their failures because such new technological advancement requires time. That’s because:

  • NFT projects may lack a distinctive value proposition. Since the markets become saturated due to being flooded with projects, companies must find ways to show why they’re unique;
  • Managers have a poor execution of implementing the NFT project due to technical flaws or poor user experience;
  • Teams fail to engage with the public. Depending on the target audience, companies must find the right tone and strategy that appeals to the age group; 
  • NFT projects are not made with longevity in mind. Since they’re all prone to changing trends, organizations fail to develop a long-term approach;

Finally, the lack of regulation around NFTs, blockchain, and cryptocurrencies is a major factor hindering the success of these companies’ projects. From a legal perspective, NFTs are simple media forms through which users exchange money with developers or businesses, but companies are not authorized to use such assets.

Therefore, jumping on the NFT trend takes courage and preparation. Regulations may change quickly throughout the year, challenging organizations' marketing and development processes. 

Are you excited about the upcoming Starbucks NFT project? 

Starbucks, the famous beverage company, tested a beta strategy called Starbucks Odyssey that included NFT rewards and points through which customers could purchase real drinks and engage with the community project. While it was successfully established, the business eventually closed it, announcing a new similar project that would instead focus on sustainability based on NFTs. We can say that Starbucks has learned from its mistakes and might eventually establish a ground-breaking NFT program.