The ongoing crypto bear market and a backdrop of economic uncertainty have some marketers wondering if spending time and money on blockchain-based projects is worth it. However, the ubiquity of the Starbucks brand and history of digital innovation put Odyssey even more under the microscope. Marketers and industry watchers say they are watching the launch of the program as it could be an indicator of how much consumers are willing to care about branded NFTs.

Odyssey, which was first announced in September and will expand to more people in January 2023, makes Starbucks one of the largest brands to integrate NFT into its loyalty program. That’s something companies have begun to explore, while others look for ways to make digital assets more useful as interest in collectible NFTs fades. Activities will include taking a virtual tour of a coffee farm, learning about the history of Starbucks, and playing interactive games. Rewards for collecting “stamps” (NFTs) include virtual espresso martini-making classes, access to merchandise and artist collaborations, and invitations to events at Starbucks stores and coffee farms.

The company declined an interview to give more details about Odyssey. However, in a blog post, Starbucks CMO Brady Brewer described it as the “next big innovation” and a way to reward customers. “We are leveraging Web3 technology to reward and connect with our members in new ways, such as offering collectible and proprietary digital stamps, a new digital community, and opening up access to new benefits and immersive coffee experiences, both physically and digitally.”

Odyssey was created with the help of Forum3, a Web3 loyalty platform co-founded by someone who knows the brand very well: former Starbucks chief digital officer Adam Brotman. He developed the coffee giant’s existing loyalty program and also led the design of its mobile ordering and payment systems. Starbucks is also partnering with Nifty Gateway, a popular NFT marketplace.

Some marketers in the Web3 space say it will be worth paying attention to whether Web3 enthusiasts are open to a brand like Starbucks entering the space, or whether they feel the brand has oversimplified it.

“The launch of Starbucks Odyssey is a litmus test of Web3’s readiness to help a top QSR brand take customer engagement to the next level,” said Israel Mirksy, partner at innovation firm House of Attention. “As much as it is a test of the brand’s ability to create compelling experiences on that basis.”

According to Mirsky, Starbucks is right to focus Odyssey on building communities, engaging fans, and maintaining consistency with other parts of the brand, such as its existing rewards program and digital platforms. However, success will depend on how creative the experience ends up being.

Liron Shapira, a former investor in cryptocurrency giant Coinbase who is now a crypto skeptic, said companies should watch whether Odyssey succeeds as a loyalty program. But if it does, he said other companies should copy it but get rid of the blockchain part, as many may not even need it.

“They say the user might not even know it’s a blockchain thing, which means it’s just a loyalty program,” Shapira said. “The choice of blockchain technology to track the ledger of who has what in this system is crazy since Starbucks is fundamentally a trusted party in the system.”

Matt Wurst, CMO and co-founder of Mint, an NFT platform for brands, said there are several key groups that will pay close attention to whether Odyssey is a canary in the coal mine, including established brands that have been early adopters of Web3 technology, other brands that have been watching from the sidelines, and investors wondering if the space is worth funding.

Starbucks could also present a possible data strategy that others might want to learn from, Wurst said. The biggest challenges will be articulating value to customers and keeping people engaged over time.

“This is a [customer relationship management] play, make no mistake,” Wurst said. “The opportunity, whether it’s loyalty or membership, is to continue to engage your consumer in a different way. Email is limited. Search behavior is limited. But now we have a direct way through proof of ownership to connect with advocates, loyal consumers, or people who have visited a store or restaurant.”

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