Why Companies are Utilising Gamification to Drive Customer Retention

Written by Tom Peace

Gamification has been a very popular and an effective strategy for companies to engage with their customer base. By implementing gamification into loyalty programs, brands are able to drive customer engagement, brand loyalty and product sales.

The ability of gamification to capitalise on people's natural drive for competitiveness, accomplishment, and social contact is one of the main factors influencing its success in customer retention. Brands may encourage their consumers to engage in their marketing initiatives and, as a result, boost their chances of conversion by giving prizes, points, badges, or other incentives.

We have seen multiple companies incorporate gamification elements into their loyalty programs which has led to great success in customer retention and introducing new users to their brand.

Through its rewards program, Starbucks has successfully used gamification into their customer retention strategy. Each time a customer makes a purchase, they accumulate stars that can be exchanged for free drinks, food, or merchandise. Additionally, the programme provides tailored promotions and challenges to entice users to try new things and return to Starbucks more regularly. Starbucks' gamified strategy has increased sales while also boosting consumer loyalty.

McDonalds has showed us that gamification can also be successful through traditional channels. For many years, McDonald's has utilised gamification in its yearly Monopoly promotion. With every purchase, customers are given game pieces that can be accumulated for a chance to win different rewards. The Monopoly promotion is one of McDonald's most effective retention efforts, by generating customer engagement and rising sales thanks to its straightforward yet captivating strategy.

Lastly we look at Nike, with their Nike+ platform. Users can log their exercise activities, create goals, and engage in friendly competition thanks to this digital ecosystem. Nike has succeeded in building a very engaging platform that motivates people to stay active and connected with the brand by incorporating gaming features like leader boards, achievements, and challenges. As a result, Nike+ has developed into a potent retention tool for the business by promoting brand loyalty and increasing consumer involvement.

Companies may make their audience's experience more engaged and enjoyable by introducing gaming aspects into their campaigns, which will eventually increase brand loyalty and boost sales. However, to ensure their gamified loyalty programs are successful in attaining their goals. Brands must carefully plan and constantly improve to achieve a long lasting relationship with their consumers.