Loyalty Insights - Gamification and Loyalty

Written by Tom Peace

Gamification is tipped as an emerging trend in the world of loyalty! It has become increasingly popular in recent years due to its ability to create an enjoyable and interactive experience for customers, leading to higher engagement and loyalty towards the brand. A recent report by Mordor Intelligence states:


👉 The global gamification market is scheduled to grow by 25% between 2020 and 2025, and retail holds the largest share.

👉 Gamification has been shown to increase customer acquisitions by as much as 700%.

👉 Gamification tactics raised engagement and loyalty by 30% for brands such as Walgreens, eBay, Threadless and more.

But, what are the benefits of adding a game to your loyalty program?


Gather data

A game is a perfect opportunity to gather valuable data and learn more about your customer - their wants, needs and behaviour. This powerful insight can influence a more personalised experience.


Customer retention

Consumer retention costs around 4-6 times more than customer acquisition. Gamification gives your customers a reason to come back and engage with your brand, whether that's to complete the next challenge, collect their badge or earn the next reward.


Differentiation

A unique game gives you the ability to differentiate from competitors by providing an engaging and interactive addition to your loyalty program.


Brands have already started to explore gamification within their loyalty programs, for example, Victoria’s Secret with its Pink Nation mobile app where members receive additional points by playing daily trivia games.