Blog / The Future of NFT Loyalty Program: What Can be Drawn from Starbucks x Polygon?

The Future of NFT Loyalty Program: What Can be Drawn from Starbucks x Polygon?


Omatech Web3


NFT has recently become a hot commodity: from $590,000 for funny pop-tart cat memes to nearly $3 million for purchasing screenshots of the first tweet of 2006. Following this latest technology, businesses have also added NFTs to their rewards programs. 


So, what impact does NFT have on your loyalty programs? How can NFT be used to add a refreshing element to a loyalty program? Let’s find out in this article!


1. How Does NFT Loyalty Program Differ from the Tradition Rewards Program?


The Loyalty Program is a system that rewards “loyal” customers based on their frequency of purchases and the amount spent. The more your customers use your services and goods, the more points they accumulate to redeem for free or discounted items. 


An NFT loyalty program borrows the traditional loyalty program ethos but NFT blockchain technology – which is non-fungible, unique, and irreplaceable replaces the loyalty card. Because NFTs thrive on exclusivity and the fear of missing out (FOMO), NFT loyalty programs provide a unique opportunity for businesses to engage customers by leveraging the collectible digital item paradigm.




2. Benefits of Loyalty Programs using NFT

For any digital rewards program, rewards have an essential role to play in driving member acquisition and engagement. If businesses intend to apply NFTs to their loyalty programs, below are some advantages of NFTs to consider:

  • Unique:

    As its name (non-fungible tokens) suggests, NFTs are meant to be unique and limited items, not mass-produced. Each NFT must be designed to function in a specific context for your company — a specific campaign or sales period in which the dimensions of the NFT change constantly for each given idea. This allows customers to experience a unique feeling whenever they receive an NFT.

  • Cost-effective:

    Because NFTs are relatively simple to create, the barrier to entry is low. Collections can be algorithmically programmed to save money while maximizing brand value. The real investment is in developing and committing to a long-term strategy that is consistent with the brand’s identity.

  • Long-term brand equity:

    NFTs offers a new way to directly access and reward customers, collaborate with other brands, support a social cause, and build a community–these elements can encourage consumers to follow and engage with a brand in the long run.

3. Case Study: Starbucks NFT Loyalty Programs

Starbucks has recently partnered with Polygon to provide blockchain technology for its recently announced Web3 experience, Starbucks Odyssey. This collaboration promises to take its rewards loyalty programs, which were previously successful in increasing revenue, to a new level. 

In the past, when customers bought a drink at Starbucks, they could earn “stars” and redeem them for a free drink or cake. The Web3 experience will be completely different. Starbucks Rewards members and Starbucks partners (employees) in the US can now seize an opportunity to earn and buy digital collectible assets that grant access to new benefits and immersive coffee experiences. 




To be more specific, members will join Starbucks Odyssey ‘journeys’, such as playing interactive games or taking on fun challenges to deepen their knowledge of coffee and Starbucks. When completing journeys, they can earn a digital collectible ‘journey stamp’ (NFT). They can also purchase ‘limited-edition stamps’ (NFTs) with no crypto wallet or cryptocurrency. Such stamps represent a specific point, which helps to increase their members’ points and gain access to previously unavailable benefits and experiences.


This new Web3 experience and NFT Loyalty Program appear to be captivating to both crypto fans and non-crypto enthusiasts. “Our vision is to create a place where our digital community can come together over coffee, engage in immersive experiences, and celebrate the heritage and future of Starbucks.” – said Brady Brewer, Starbucks executive vice president, and chief marketing officer.


4. Final Thoughts

Starbucks is just a start of a trend integrating NFTs with an industry-leading loyalty program on a large scale. We expect that many other brands will follow this NFT loyalty program soon in order to increase customer engagement significantly.


Are you a Web2 brand interested in pursuing an NFT loyalty program and leveraging the Web3 experience for your end-users? Send us a message to discuss this further. SotaTek is a global SDaaS corporation, the largest Blockchain consultant and solution provider in South East Asia. We own 1000+ in-house employees and 10 global offices to seamlessly offer IT services for clients all over the world. If you have a project in mind, join us right now and enjoy price incentives!

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