8 FAQs to Help You Understand Gaming Rewards Programs Better

by Natasha Ambavle |

In the loyalty arena, gamified loyalty and gaming rewards programs are the new buzzwords. While gamification has been around for decades, not everyone is familiar with the term and its significance in marketing and loyalty strategies. Here, we answer some frequently asked questions about gamified loyalty and help you understand the concept better.

Q1. What is Gamification in Marketing and Loyalty Scenario?

Answer: As the name suggests, gamification is the implementation of gaming elements in marketing and loyalty strategies. It applies gaming mechanics in non-gaming scenarios to keep the audience engaged for a prolonged period of time. Gamification uses entertainment as the means and medium to get the audience emotionally invested in the campaign or program. It’s a diverse tactic that could be utilized in more ways than one in your marketing and loyalty strategies. Gaming rewards programs work best as they not only entertain and engage customers but also provide additional incentives to actively participate in the loyalty program.

Q2. Does it Really Work?

Answer: Absolutely! The logic behind gaming rewards program is simple yet effective. Gamified loyalty programs incentivize customers’ actions. Levels and badges motivate customers to escalate through the tiers and incentives further motivate their actions. Gamified loyalty programs create a sense of competition that encourages customers to earn badges, cross tiers, and levels to earn rewards and incentives. A leaderboard or scoreboard further encourages customers to compete amongst each other and earn badges and reach tiers before other customers.

Q3. Have Well-known Brands Benefitted from It?

Answer: Gamification has been around since 1908 but it was only in 2002, that the term was officially coined and globally recognized as an effective strategy. In recent years, numerous brands across various verticals have benefitted from gaming rewards programs. From Nike to Starbucks, well-known brands have adopted gamification strategies. The telecommunication giant- Verizon observed a 30% increase in user browsing time since its implementation of the points and badges strategy. Coca- Cola too briefly used gamified elements to boost retention and acquisition rates in their adventure-themed strategy where the winner could earn movie tickets to the new James Bond movie as the final prize.  With the help of gamified content, Ford Motors propelled their sales by more than $8 million and Facebook engagement by 600%.

Q4. How do Gaming Rewards Program Actually Work?

Answer: Depending on your marketing and business objectives you could design strategies that compel customers to ‘act’. For example, if you are looking to create a strong social media presence and increase your brand reach, you could incentivize your customers for sharing your posts or social mentions. With tiers and giving exciting rewards for winning new badges, you can increase customer engagement and further encourage them to actively share your content on their social feed. Gaming elements are diverse, you could customize your program and incorporate gaming elements to your advantage, be it to increase engagement, improve customer retention rate, increase referrals and acquire new customers.

Q5. What are the Most Common Gamification Elements?

Answer: When it comes to gamification in marketing and loyalty strategies you are only restricted by your imagination. You can design new strategies that suit your brand personality and appeal to your audience. However, some elements have been tried and tested by numerous brands and still work exceptionally well like leaderboards, badges, tiers and levels, virtual currency, competitive strategy and experience points. These elements are widely used and fail-proof, however, it is important to consult your loyalty partner before devising a strategy. Their expertise and experience can help you design strategies that are better suited to your brand aesthetics.

Q6. How Can I Gamify My Loyalty Program?

Answer: Before you implement any kind of strategy you need to be aware of your brand guidelines. Your brand guidelines and brand image will set the tone of your program and help you understand what works for your brand and what doesn’t. Next, you need to define your marketing objectives, this will give you a goal to work towards. A very important aspect is understanding your demographic and target group. Gamification works best when your audience is younger, for baby boomers, gamification may not be as effective as it is for millennials and gen Zs. All these factors play a crucial role in helping you determine what strategy will yield the best possible results.

Q7. Can Gaming Rewards Program Help to Increase Brand Value?

Answer: Loyalty programs have an impact on the overall brand value in the long run. Gamified programs increase customer engagement rate that affects customer satisfaction and customer experience. Improved customer experience increases customer retention rate and also positively influences customer acquisition rate through word-of-mouth publicity and referrals. All this has a significant impact on the sales and revenue as well as brand image, in the long run.

Q8. Who Can Help Me Design and Implement Gamification Strategies?

Answer: Designing a loyalty program is a complex process and requires the technical prowess and experience of a loyalty partner such as Annex Cloud. With over a decade’s experience in the loyalty market, Annex Cloud has the expertise to design a program that helps you achieve your marketing objectives effectively. Having been recognized by Forrester for its Omnichannel Loyalty and Rewards and Incentive Engine, Annex Cloud has emerged as a prominent name in the American loyalty circuit. To learn how you could gamify your loyalty program and amplify your brand’s reach, consult with our Loyalty Experience Manager.

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