The Ultimate Guide to Gamification in Loyalty Programs: 7 Benefits & 13 Ideas

Aws Alnabulsi
April 25, 2023
|
12 min to read
Loyalty Program Gamification Guide

Gamification has become an increasingly popular strategy for businesses looking to enhance customer engagement and loyalty. But what does gamification mean?

This technique involves incorporating game-like elements into non-game environments, such as loyalty programs, to motivate and incentivize customers to participate more actively.

Ecommerce companies could offer clients more than just transactional benefits by gamifying the loyalty experience.Customers are more likely to be interested in and enthusiastic about a brand when they have an engaging and entertaining experience.

For instance, businesses may provide customers with points or rewards for completing tasks like referring friends, posting on social media, or leaving reviews.They can also design unique challenges or contests to keep clients motivated and entice them to return.

Core Loyalty specializes in developing unique gamification solutions that assist ecommerce companies in forging enduring connections with their clients.

Businesses can implement a loyalty program that includes game-like components including badges, leaderboards, and interactive challenges. With cutting-edge loyalty strategy, Core Loyalty can help your company define what is gamification in business and give their consumers a really engaging and rewarding experience.

Table of Contents

  • What Is Gamification?
  • What Are the Benefits of Gamification in Loyalty Programs?
  • 5 Top Loyalty Program Gamification Examples
  • 13 Ideas for Gamifying Your Customer Loyalty Experience
  • Core Loyalty: The Best Customer Loyalty Program Gamification Tool
  • Gamifying Your Rewards Programs

What Is Gamification?

What Is Gamification?

To define gamification, it is the use of game-like elements and mechanics in non-game contexts to engage and motivate users.

This gamification meaning is based on the findings that people prefer enjoyable, rewarding, and challenging activities. Gamification tries to boost motivation, involvement, and loyalty by incorporating elements of games into routine activities.

The psychology of gamification is based on the principles of behavioral economics and is designed to tap into our innate desire for achievement, status, and social recognition. According to Demand Gen Report, 93% of marketers say they adore gamification, making it the current ecommerce marketing favorite.

What Is Loyalty Program Gamification?

Loyalty program gamification is the application of gamification principles to loyalty programs.

In specific, gamification is the process of adding game-like elements to non-game contexts, such as loyalty programs, to make them more engaging and interactive.

By using gamification, ecommerce websites can create loyalty programs that are more fun, exciting, and rewarding for customers, ultimately increasing engagement and loyalty.

There are several ways to gamify loyalty programs, including point systems, badges, challenges, leaderboards, and social sharing. Based on this loyalty gamification definition, users can get points for buying something or referring a friend.

These points can then be exchanged for benefits like savings, freebies, or access to premium activities.

In order to get customers to participate in loyalty programs more actively, businesses can also set up challenges or contests. Customers could complete a series of activities to qualify for a special badge or a position on a leaderboard.

Businesses may develop loyalty programs that not only encourage customer behavior but also foster enjoyment and enthusiasm around the brand by utilizing the concept of gamification.

What Are the Benefits of Gamification in Loyalty Programs?

When game-like elements are incorporated into loyalty programs, they become more fun, more interactive, more rewarding, and - ultimately - more attractive for customers.

Here are seven benefits of gamification in loyalty programs:

1. Increased customer engagement

Gamification can increase customer engagement in loyalty programs by providing a more interactive and enjoyable experience.

Gamified loyalty programs have a 47% higher redemption rate than non-gamified programs when properly utilized, based on Snipp data.

2. Improved customer retention

Loyalty Program Gamification Benefits - Increased Customer Retention

Loyalty program gamification can also improve customer retention by creating a sense of loyalty and attachment to the brand. According to Bond Loyalty Report, 79% of customers are more likely to stay loyal to a brand that offers a loyalty program.

3. Enhanced brand loyalty

Gamification creates a positive association with the brand. Anvato reports that gamification boosts brand loyalty by 22%, customer engagement by 47%, and brand awareness by 15% for businesses that use it in their customer engagement strategy.

4. Increased customer referrals

Gamification can encourage customers to refer friends to the loyalty program by offering rewards for referrals. Gamified referral marketing programs have a 3-5x higher conversion rate than non-gamified programs, according to Annex Cloud data.

5. Enhanced data gathering

Gamification can encourage users to provide more information about themselves by making it a part of the game-like experience.

By offering rewards or recognition for providing more information, users may feel more motivated to share their data.

A loyalty program might offer points or badges for filling out a customer profile or answering a survey.

6. Higher customer satisfaction

Gamification can lead to higher customer satisfaction by creating a more enjoyable and rewarding experience. The use of gamification in customer engagement methods increases trial usage by 54% and buy clicks by 15%, based on Djangostars figures.

7. Increased sales and revenue

Loyalty Program Gamification Benefits - Increased Sales and Revenue

By offering rewards for achieving particular milestones or spending a given amount, gamification might encourage users to make more purchases.

Customers who spend a specific amount over time, or who make a certain number of purchases in a given month, may be eligible for additional points or discounts as part of a loyalty program.

5 Top Loyalty Program Gamification Examples

Retaining customers has become more challenging than ever before. To address this challenge, companies have turned to gamification as a means of fostering customer loyalty and engagement in loyalty programs.

Here are five examples of specific brand loyalty programs using gamification:

1. Starbucks Rewards

Starbucks Rewards offers customers the opportunity to earn "stars" for every purchase they make.

Customers can then redeem these stars for free drinks and food items.The program also offers challenges and special offers to incentivize additional purchases.

2. Sephora Beauty Insider

Customers can earn points through the Beauty Insider program at Sephora and then exchange them for premium goods and experiences.

Beauty product shoppers get the chance to achieve "Rouge" status, which has more perks and advantages.

3. NikePlus

NikePlus rewards customers with exclusive access to products, early access to sales, and personalization of workouts and training plans.

The program also offers challenges and rewards for completing certain fitness goals.

4.MyPanera

MyPanera rewards customers with free food and drinks for purchases, as well as with personalized offers and surprises.

The program also offers challenges and rewards for completing certain tasks, such as trying new menu items.

5. Marriott Bonvoy

Marriott Bonvoy offers customers points for stays at participating hotels, which they can redeem for free nights, room upgrades, and other rewards.

In addition, the program provides challenges and rewards for completing certain actions, such as booking through the Marriott app or trying new hotel brands.

13 Ideas for Gamifying Your Customer Loyalty Experience

Any prosperous company is built on the loyalty of its customers. However, given the variety of options consumers have on the market, it can be difficult to maintain their interest in and loyalty to your business.

Gamification makes it more interesting for customers to participate and support your business.

Here are 13 specific examples how you can gamify the loyalty experience for your customers:

1. Challenges and missions

Loyalty Program Gamification Ideas - Challenges and Missions

You can create challenges and missions for customers to complete, such as trying new products, referring friends, or sharing their experiences on social media.

Then, you can offer different types of rewards for completing these challenges.

2. Surprise and delight rewards

Ecommerce businesses can try offering surprise and delight rewards to customers for no particular reason, creating a sense of excitement and unpredictability that keeps customers engaged.

3. Gamified surveys and feedback

Gamified surveys and feedback forms can be applied to gather customer feedback and insights, encouraging participation and providing customers with a more engaging and enjoyable experience.

4. Referral rewards

Rewards for referrals are a potent tool to encourage your devoted clients to recommend your company to their friends and family.

You can enhance client acquisition and capitalize on the effectiveness of word-of-mouth marketing by rewarding existing customers who refer new customers to your loyalty program.

Referral incentives also improve the shopping experience for potential customers, who are more likely to make a purchase when referred by a reliable friend or family member.

5. Leaderboards

Leaderboards are another effective gamification feature that can increase engagement and loyalty in your customer base.

By creating a leaderboard that highlights top-performing users, you can stimulate competition and encourage users to interact with your loyalty program more frequently.

Leaderboards help to create a sense of community and excitement among your customers, driving continued engagement and loyalty.

6. Individual experiences

Ecommerce personalization is also key to creating a fun and engaging loyalty program. Customer information helps you tailor experiences and promotions to each individual client. You can design a distinctive and personalized loyalty program that promotes continued participation.

Through personalized experiences, promotions, and rewards, you can create a unique and memorable experience for your customers that keeps them coming back for more.

7. Awards and progress bars

Awards and progress bars are a great way to show your customers their progress towards achieving certain milestones or goals in your loyalty program.

With progress bars and badges, you can encourage sustained involvement and increased levels of loyalty. These gamification features can help keep customers engaged and motivated, and they also provide a sense of accomplishment and pride as customers work towards achieving their goals.

8. Social networking

Social networking rewards or recognizes customers who share their experiences on social media. This raises brand awareness and encourages customers to engage with your business on multiple platforms.

Social media networking creates a sense of community and fosters a stronger connection between your customers and your brand.

9. Interactive experiences

Interactive experiences like games or quizzes are wonderful ways to encourage engagement.

You deliver an amusing and instructive experience that keeps clients engaged and encouraged to participate in your loyalty program by developing interactive or AI activities that are relevant to your brand or products.

These gamification characteristics contribute to the creation of an enjoyable and distinctive loyalty experience, which promotes ongoing engagement and loyalty.

10. VIP benefits and status

It is worth giving loyal clients VIP treatment and benefits, including access to special goods, occasions, or experiences.

11. Social support

As another customer loyalty program gamification strategy, you can use social proof, such as customer testimonials or reviews, to promote engagement and loyalty by highlighting the positive experiences of other consumers.

12. Seasonal or transient prizes

To encourage ongoing involvement and foster a sense of exclusivity, brands can offer seasonal or limited-time rewards and experiences, such as special holiday specials or limited edition products.

13.Tier-based loyalty schemes

In a loyalty program with tiers, users begin at the lowest level and can advance up the levels by making a certain amount of purchases or introducing customers.

Different prizes and advantages are available at each tier, such as special discounts, first access to new products, or free shipping.

Customers who are competitive or who enjoy setting and attaining objectives may find this to be extremely useful. You entice clients to stick with your company longer and keep interacting with your brand by providing a tier-based loyalty program.

Core Loyalty: The Best Customer Loyalty Program Gamification Tool

Core Loyalty is a cutting-edge gamification tool for customer loyalty programs that excels in providing customers with a distinctive and rewarding loyalty experience. The platform distinguishes itself from rivals in the industry, such as Smile.io and Stamped.io, by providing a broad range of sophisticated gamification elements.

Core Loyalty Gamification Features

One of Core Loyalty's primary benefits is its adaptable rewards system, which enables companies to design one-of-a-kind prizes specifically for their consumers.

Offering points for purchases, finishing tasks and missions, and hitting predetermined milestones all fall under this category.

Core Loyalty Gamification Features - VIP Levels

To keep customers interested and make them come back for more, businesses may customize experiences for each individual user, depending on their interests and behavior.

Leaderboards, progress bars, and badges are just a few of the engagement elements that Core Loyalty also provides. These features help to reward ongoing participation and motivate users to aim for higher loyalty levels.

The site has social sharing features that let users spread the word about their positive business experiences and rewards on social media.

The Shopify, WooCommerce, and Magento ecommerce platforms are seamlessly integrated with Core Loyalty. It's now simple for businesses hosted on these platforms as well as Nuvemshop, VTEX, and Zid to set up and administer their loyalty programs.

The platform's user-friendly interface and great degree of customization make it possible for companies to quickly design and modify their loyalty program to suit their particular requirements.

Core Loyalty is the best tool for businesses looking to enhance their customer loyalty program with gamification. With its sophisticated features, customizable rewards system, and easy integration with major ecommerce platforms, Core Loyalty offers a complete and effective solution for businesses looking to drive customer engagement and loyalty.

Click here to get started today!

Gamifying Your Rewards Programs

Gamification is a successful technique to improve customer loyalty programs because it gives customers a fun and rewarding experience that encourages them to keep using the service.

Various ecommerce businesses can easily encourage ongoing engagement and boost customer loyalty by implementing gamification features like challenges, missions, and tailored incentives. This increases sales and revenue.

Core Loyalty is a great tool available for both small startups and large enterprises that wish to integrate gamification in their loyalty programs, offering a variety of sophisticated features, simple interaction with key ecommerce platforms, and a highly customizable interface.

You can design a distinctive and compelling loyalty experience with Core Loyalty and keep your customers coming back for more.

Schedule a demo with our team to learn more about our loyalty program gamification features.

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Categories

Ecommerce

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Marketing

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Omnichannel

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Loyalty

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AI and Personalization

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Tags

Loyalty

Gamification

Authors

Daniela Andreevska

Daniela has 6 years of experience in digital marketing for ecommerce businesses.

Aws Alnabulsi

Aws is the Co-Founder of Coretava, a complete retail ecommerce growth platform. He has 6+ years of experience in managing and growing ecommerce businesses.

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