The NFT space may be down from all-time highs, but brands and loyalty programs are finding new ways to engage fans. Steve Kaczynski, community lead for Starbucks Odyssey, believes that NFTs are the key to building brand loyalty in the digital age.
Key Takeaway
Starbucks Odyssey’s integration of NFTs into its loyalty program demonstrates the potential for brands to foster community engagement and brand loyalty in the web3 era, transcending traditional loyalty initiatives.
Starbucks Odyssey: Merging Loyalty Programs and NFTs
In 2022, Starbucks launched Starbucks Odyssey, a web3 experience that integrated the company’s Starbucks Reward loyalty program with NFTs to elevate customer interactions. According to Kaczynski, this initiative has not only enhanced customer experiences but also fostered a sense of community among participants.
Community-Based Brand Building in 2024
Kaczynski predicts that companies will expand upon “brand anchors” to gated areas like reward programs in 2024. He foresees a rise in community-based brand building, emphasizing the potential for people to connect and form friendships across different locations through web3 platforms like Starbucks Odyssey.
Web3 Loyalty Program and NFT Community
Starbucks Odyssey’s loyalty program boasts a five-tiered system with over 58,000 active participants, demonstrating its appeal to a diverse audience beyond the web3 native community. Kaczynski highlights the program’s success, with top participants earning rewards such as a trip to Costa Rica to visit Starbucks’ coffee farms.
Expanding NFT Utility Beyond Major Brands
Besides big companies like Starbucks and Nike, Kaczynski envisions the potential for local businesses to leverage NFTs for loyalty programs and incentives. He illustrates this with an example involving a food brand offering discounts to gamers who purchase a specific product and connect it to a crypto wallet, showcasing the broader applications of NFTs beyond traditional perceptions.
The Value of NFT Ownership
Kaczynski emphasizes the value of owning NFTs, likening it to owning a valuable painting in a museum. He highlights the significance of NFTs in allowing brands and companies to truly own and trade loyalty, transforming the concept of loyalty into a two-way interaction.
