Customer loyalty programmes are a great way to build up a loyal customer base, which can significantly boost your profits. Getting such a programme right is essential if you want to encourage as many people to sign up as possible. One way to create a rewarding loyalty programme is through gamification.
What does gamification mean?
Gamification refers to the use of game mechanics in a non-gaming context. It often involves motivating people to achieve a goal in exchange for a reward. Some common examples of gamification techniques include points, trophies and leaderboards. Gamification can be used in many industries, from education to health, but one of the best examples of gamification can be found in customer loyalty programmes.
How Gamification can improve a customer loyalty programme
Gamification is a powerful tool because it taps into the hard-wired human desire to make progress in something. Gaming gives players a sense of achievement, resulting in the release of endorphins and dopamine and improving mood. Using these techniques in a loyalty programme can therefore give your customers a positive experience which will encourage them to keep coming back to you.
Many customer loyalty programmes make use of gamification to keep customers engaged. A common practice is to offer the customer points in exchange for purchases, which can be collected and redeemed for various rewards. However, there are multiple gamification techniques you can add to your loyalty programme to get customers invested.
Gamification techniques
As mentioned previously, one of the most common gamification techniques found in loyalty programmes is a points system. Offering the customer points every time they buy something, they can then redeem these points for various rewards. A good example of this is the Tesco Clubcard. Tesco’s Clubcard gives customers 1 point for every £1 they spend in-store. These points can then be redeemed for vouchers- 150 points equals £1.50 and so on. These can be used in-store but can also be used with various partner brands. This type of loyalty strategy works because the customer feels that they are achieving something every time they shop and are therefore more likely to continue shopping there.
Another effective gamification technique is streaks and milestones. These can be given when the customer achieves something continuously, such as logging into a loyalty app for a certain number of days in a row or by redeeming points a certain number of times. These techniques are effective because they constantly give the customer a goal to work towards.
There are many other gamification techniques you can make use of. Working with a loyalty agency will give you insight into how you can use these techniques to build an effective programme.
In conclusion, gamifying your customer loyalty programmes can be an effective way of improving customer engagement. Provided that these techniques don’t make your programme too confusing, they can be a great way of building loyalty, inspiring customers to keep coming back to your business so they can keep achieving their goals. What’s more, a well-designed loyalty programme with fun game mechanics can help you further stand out against your competitors.
