How Gamified Loyalty Programs Engage Customers Beyond the Checkout

Gamified loyalty programs are a leading way to keep customers engaged beyond the checkout. This marketing strategy uses game design elements - think levels, challenges, and rewards - to shape customer loyalty programs and create "stickiness."

Studies show that companies that create gamified loyalty programs see a 30% increase in customer retention. The more shoppers engage and win, the more they want to return.

Let's dive into how to make gamified loyalty programs work for your business.

Benefits of Gamified Loyalty Programs

Here's why gamification is effective and beneficial for both businesses and consumers:

1. They Motivate Members to Continuously Re-engage

There's a reason gamification increases customer engagement by up to 47% - it's rewarding for customers! Shoppers like fun, low-risk interactive experiences and rewards that deliver real value. Brands can also integrate elements such as time constraints and leaderboards to introduce the fear of missing out and the drive to win. These simple strategies motivate members to re-engage with the program often.

2. They Boost Brand Awareness

As customers build more positive associations with your brand and spread the word on social media, brand awareness increases. One study showed that gamification can improve brand awareness by 15%.

3. They Provide Valuable First-Party Data

These programs provide a great way to gather valuable data on customer preferences. From quizzes, surveys, and reviews to an inside look at how shoppers redeem points, brands can use these insights to personalize experiences for individual shoppers and make product improvements. Be sure to responsibly collect all first-party data and receive permission before doing so.

4. They Celebrate Achievements

Recognizing member wins creates an emotional connection between members and the brand and encourages brand loyalty. Suggestions for recognition include reaching out via email or SMS or spotlighting wins on your platforms, either through a one-time post or with a "wall of fame."

According to a study by Snipp Interactive, companies that changed their loyalty programs to include gamification experienced a 22% increase in brand loyalty.

Core Elements of a Gamified Loyalty Program

Loyalty programs should be designed intentionally and with the customer in mind. A bad experience could drive a shopper away. To ensure a seamless user journey, we recommend the following:

Points and Rewards

Rewards are at the core of any successful loyalty program.

According to a Snappy survey, consumers prefer earning points that can be redeemed for discounts, gifts, or exclusive merchandise. In fact, 73% of people report seeing a brand more favorably when they receive quality gifts or exclusive merchandise as part of a customer loyalty program.

To gamify the experience and introduce an element of surprise, launch a "spin-to-win" wheel or scratch cards with different prizes after players earn a certain number of points.

Levels and Progression

Ecommerce businesses can take a page out of the mobile gaming playbook with "progressive rewards," a popular method for driving user engagement and retention after the initial app download.

With these rewards, members unlock levels with increasing benefits the more they interact with your program. Winning interactions can include making a purchase, leaving a review, sharing something on a social platform, or referring friends and family.

Short-Term Challenges

Short-term challenges and awards can appear in your gamified loyalty program on a scheduled basis - say, every Tuesday - or sporadically. The goal is to boost engagement by limiting the time shoppers have to redeem a reward.

Be sure challenges and rewards are high value so that shoppers want to engage. For example, share a secret code word with loyalty program members. If shoppers use the code word while in stores on a certain day, they can receive a free or discounted item with every purchase.

Leaderboards and Social Sharing

Want to encourage some friendly competition? Include a leaderboard in your loyalty program! You can also brag about winners on social media and encourage members to celebrate wins across their own channels. This can help boost brand visibility and awareness of your gamified loyalty program.

Examples of Brands Using Gamified Loyalty Programs

Vivid Seats

Vivid Seats is a leading online ticket marketplace. Members of its reward program, Vivid Seats Rewards, earn a stamp with every ticket purchase. As more purchases are made, members progress through the program's levels: Rising Star, Super Fan, and Icon. Over time they are rewarded with increasingly rich perks such as free tickets, ticket upgrades, and exclusive access to industry events.

KFC

KFC Rewards uses a few different gamification strategies. For example, in the UK, app users gain access to the "Arcade" with every order over a certain amount, receiving an in-app invitation to play a minigame via a Push Notification or on the KFC app homepage. Limited-time surprise challenges like "Secret Recipe Revealed" quizzes give members more chances to earn extra reward points while building excitement.

Conclusion

If your goal is to stand out in today's crowded marketplace, now is the time to leverage the power of gamified loyalty program. Design a program that's intuitive, exciting, and focused on delivering real value, and reap the rewards as your customers keep coming back for more.

Are you ready to play? Ask us today how our Customer Loyalty solution creates long-term customer relationships and boosts engagement even beyond checkout!

Check out more resources to get fluent in:

Data Clean Room | Churn Rate | Customer Relationship Management (CRM)

Fluent, Inc. is a leader in performance marketing, offering data-driven customer acquisition and partner monetization solutions that exceed client expectations. We connect brands with consumers at the most optimal moment, unlock additional revenue streams for partners, and empower advertisers to acquire their most valuable customers at scale. Connect with us now to level up your business: https://fluentco.com/contact/

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