Gamification of your loyalty program – Is it possible?
What is the first thing that comes to your mind when you hear the word ‘Gamification’? Though it is seen as a game-changing tool for brand promotions, there is more to it. Yes. Gamification, as we know is an emerging trend and some of the brands have already been using consumer loyalty programs as a part of their marketing strategies.
In the context of brand promotion, gamification has become an integral part of the marketing structure with an increasing number of reward programs.
Gamification is not complex as it may sound. It only intensifies the value to an existing marketing program by using data-oriented engagement techniques to capture a customer’s attention.
Before we look at the possibilities of gamification in loyalty programs, let us go through the types of Gamification.
1. Progress tracking
This is undertaken to make people stay loyal to the brand by helping them keep a track of their performance in loyalty programs.
For example, an online program which has users to sign up for a course includes a system to track their progress until their final objective is completed. This encourages their potential leads and customers to use more content.
2. Reward level
This is an advanced version of a basic reward program. For instance, users can earn stars to win rewards at different levels of the program. Once a customer gets a specific number of stars, they become part of a special membership program where they are entitled to receive benefits throughout the year.
Now, this brings us to the possibilities of using gamification in loyalty programs and its subsequent benefits.
This is an advanced version of a basic reward program. For instance, users can earn stars to win rewards at different levels of the program. Once a customer gets a specific number of stars, they become part of a special membership program where they are entitled to receive benefits throughout the year.
Now, this brings us to the possibilities of using gamification in loyalty programs and its subsequent benefits.
- Firstly, it increases sign-ups for a program
- It increases product sales and revenue with continuous participation
- It encourages a customer’s willingness to be a part of loyalty rewards
- It brings more brand advocates who eventually become influential marketers
There is more possibility of bringing gamification to the loyalty programs as general human behaviour is tied to motivational factors. In other words, the user gains extensively through repeated efforts. If you want to retain your customers, gamification can help al it adds excitement to improve your brand’s marketing strategy.
Gamification in loyalty programs acts as catalysts to make users spend more time and effort to reach higher levels. This is probably one of the reasons why repeated discounted sales are often considered as the primary objective of a loyalty program. It makes it easier for users to express their appreciation, aiding the brand’s marketing goal. The extended reach will amplify your brand’s social worthiness along with the online ad spends.
Hence, yes gamification is possible. In fact, it brings a brand closer to its sales goals.
Whether a brand’s consumer wins a prize or gains maximum out of it, the game design inputs put in a marketing strategy brings positive feedback looping new customers. When a brand offers more than just amazing products and services with a sense of gamification in their loyalty programs, customers are sure to love the experience and be willing to come back.
Benefits of Sales Gamification to Boost Sales
Gamification, the use of game mechanics in a non-game context to drive engagement, is becoming a standard practice in marketing and loyalty programs. The basic premise of gamification is that it uses game mechanics to leverage a participant’s sense of challenge, competition and reward to educate change attitude or behavior to inspire action.
Effective customer loyalty programs are now powered by gamification, which moves engagement beyond the transactional to create deeper, data-driven and more valuable customer relationships.
To a large extent, gamification leverages the same tactics of video games and their ability to get players addicted to virtual rewards. Successful gamification finds ways to turn tasks into a competition amongst players or customers by building mechanisms for achievements and public competition.
Few pointers that businesses need keep in mind when implementing gamification:
- Set a clear goal and that goal must be aligned to the marketing or loyalty. There must be a finish line in sight, so customers know exactly what they need to do to achieve that goal.
- Decide what customers should do to progress in the game. Tasks to be aligned with the behavior you want to reward. This could include simple things like sharing the content on social media.
- Recognition is a big motivator in successful games, so it’s important to show customers how they are progressing towards earning a reward. That means structuring the levels such that they seem achievable. Leader boards can play a great part in the recognition part.
- Reward participation. Reward new members bonus points for just signing up.
- Games need to be fun and a delight to play. A very effective gamification technique is by giving a random reward or freebies at unexpected times. This will give the customer enjoyment beyond the free item.
Peppers & Rogers Group has created a proprietary methodology called the “E7 framework” as a holistic approach to both drive usage and derives benefits from gamification.
Simply stated Increase ENGAGEMENT by EDUCATING, ENERGIZING and EMPOWERING the customer while ensuring EARNING for the client, ENJOYMENT for the user and EVOLUTION of the customer relationship.”
Simply stated, “Increase ENGAGEMENT by EDUCATING, ENERGIZING and EMPOWERING the customer while ensuring EARNING for the client, ENJOYMENT for the user and EVOLUTION of the customer relationship.”
The framework balances increasing customer involvement with creating business value at each point.
Loyalty drivers:
- Educate: Inform customers of products, processes, and events.
- Energize: Stimulate interactions and guide customer use of more services and products.
- Empower: Transform customers into proud brand ambassadors.
- Earn: Create value through increased awareness and customization.
- Enjoy: Users have fun and stay engaged with the program.
- Evolve: Understand customers much more than through traditional CRM systems.
Gamification has its biggest impact in ensuring customers keep coming back. In addition to points for purchase, providing users with a sense of achievement and competition to keep them engaged provides real retention benefits.
While gamification is a very effective tool, practitioners need to take care to use it in the correct context, and not overuse it. Gamification can be integrated to transactional behavior where it is possible to measure the direct impact of gamification on turnover. It is for this reason that gamification is playing an increasingly bigger in loyalty strategy.