Gamification is gaining traction in every industry and becoming more popular than ever before and there are numerous brands trying to capture the addictiveness of a competitive game and applying it to customer behavior. It’s a great marketing tool to prompt customers to come back for more, thus generating loyalty and brand advocacy. According to Gartner, by the end of this year, more than 70 percent of the Global 2000 companies will implement some kind of gamified initiative. Gamification, when done right, can be very effective at retaining valuable customers. TechValidate states that 30% of companies that used loyalty gamification improved registration conversion rates by more than 50%.
Brands realize that if they successfully engage their customers, they achieve a 55% higher share of wallet, and one of the prime customer engagement solutions is using games that reward customers for playing and shopping with you. Gamification triggers intrigue and excitement leading to interactions with your brand and improved customer emotional engagement. It taps into customers’ desire to compete and win. For example, customers take a fun lifestyle quiz and that helps you give insights into what type of products they prefer and this information can be useful in personalizing your marketing efforts and customer touchpoints like email marketing, targeted ads, etc. Besides, gamification methods like referral programs are also useful for brand awareness where existing customers help find new ideal prospects through word-of-mouth.
Some of the most common elements used in loyalty gamification are:
McDonald’s uses gamification through its Monopoly game which has been in existence since 1987 and is responsible for significant spike n same-store sales. Customers receive various promotional incentives that bring them back over and over again. McDonald’s saw an increase in sales by 5.6% in 2010 in its USA program. Most of the customers have confessed that they would go there to eat everyday to collect the tokens for their monopoly board.
Similarly, Nike+ was launched in 2006 to track user data like running, speed and time in an effort to keep users fit and active by using gamification. The app also allowed users to view the status of other users and compete with friends and stay engaged. The app has leaderboards for different time frames updated weekly or monthly where app users can see who’s on top.
Here’s how you can use gamification to retain customers:
A coordinated and strategic approach to gamification will enable companies to derive benefits in the form of increased customer retention, engagement and revenue growth.
Annex Cloud Has United with Worldpay to Streamline Earning Loyalty Rewards