Starbucks' Latest NFT Drop Made $200k In 20 Minutes
In December 2022, Starbucks, the famous coffee chain launched a loyalty program known as Starbucks Odyssey on Polygon which is an L2 scaling solution for Ethereum. They did this in association with Forum 3, an agency that helps brands build their web3-powered loyalty programs for consumers. Since then they have launched 5 NFT collections for their most loyal fans.
Although Starbucks' loyalty program is a huge success and accounts for more than half of their in-store purchases, it extended to web3. The reason is simple, a new way to strengthen brand loyalty. More brand loyalty means more sales. Web3 is an untapped market for many brands and most of them haven't realized its full potential yet. It is one of the fastest-growing industries in the tech sector and soon Web3 will be called the internet. Starbucks has realized this already.
How Does Odyssey Work?
This is how the program works:
- User can complete "Journeys"
- Once a journey is completed, they get Stamps (NFTs) or Points
- Based on the points, they can achieve a certain status level. More points, higher status level
- Based on status levels, users get perks in the form of merchandise, IRL events, virtual sessions etc.
Couldn't get simpler than that. Not a huge fan of Starbucks but I have immense respect for the company's openness to leverage new technologies to improve their business.
The Siren Collection
While the first 4 collections were free and users could complete journeys to collect those NFTs, the last one was paid which was known as "The Siren" with 2000 digital stamps. It pays tribute to Siren's transformation from a Seattle emblem to a worldwide icon, embodying the brand and culture of Starbucks. With each stamp representing a distinct facet of Siren's journey, including her oceanic roots, natural surroundings, local influences, and coffee companions, the collection is a celebration of her journey.
It is accessible only to members of Starbucks Odyssey. Each stamp was priced at $100. Starbucks Odyssey members were able to buy two Siren stamps each. Each NFT comes with 1,500 bonus points to level up the loyalty status.
It was launched last week and sold out within 20 minutes, making Starbucks a whopping $200k. Although the launch was smooth, there were some hiccups reported by many users in accessing the site. As per their official statement, the website broke for the majority of users due to overwhelming traffic and hype created just before the launch.
Redefining Brand Building Via Tokenization
Tokenization is a great way to build a close-knit community. NFTs are a perfect fit for loyalty programs because they can easily provide access & ownership to consumers. Creating digital tokens that represent ownership or rights of certain assets, such as products, services, artworks, or experiences will be the norm in the future. Tokenization can help brands to:
- Broaden their customer base by allowing fractional ownership and access to assets that would otherwise be too expensive or indivisible.
- Offer tokens as rewards that can be exchanged for benefits or other tokens that can increase customer loyalty and hence increase business with repeat customers. We all know how difficult it is to find new customers.
- Incentivize customers to provide feedback through surveys, reviews, and social media engagement.
- Create new types of tokens that align with their brand values and culture, and innovate their offerings.
- Provide benefits of blockchain technology such as transparency, security, and efficiency.
Starbucks is creating a playbook for Web2 brands and I am damn sure others will follow their steps in the upcoming years. Tokenization will completely change the game for businesses going forward and help them increase their revenue in long term. What do you guys think? Comment below!
Posted Using LeoFinance Beta
