Lucky in games, unlucky in love?
It also works both ways! Through entertaining elements and experiences, customers are motivated to achieve specific goals and constantly engage with the brand or company. Customers interact with the brand and the company and thus become more loyal to the brand. So those who offer their customers fun incentives as part of a customer loyalty programme can increase their engagement and, therefore, their loyalty. At the same time, companies benefit from rich data and valuable insights.
Social media contests encourage user-generated content and provide insight into customer behaviour.
At the same time, engagement rates can be increased through the targeted use of gamified elements, as reward-based behaviour encourages customers to invest more time in the brand experience and to constantly monitor and improve their progress, leading to repeat purchases and interactions. The use of gamification in loyalty programmes thus enables customer engagement beyond mere transactions. For example, social media contests can also offer incentives to be active on social networks, create content, interact, or participate in quiz games. In this way, retailers gain better insights into the behaviour of their customers and, at the same time, receive user-generated content.
Reward structure for brand engagement desired
Millennials and Gen Z, in particular, not only expect tangible rewards but simply enjoy gamification mechanisms: for example, 27% of Millennials surveyed said they were highly willing to stick with a loyalty programme that included competitive games (Colloquoy). Moreover, they are interested in being rewarded for purchases of certain products and services and want a reward structure for brand engagement.
"Social Media King" or "Brand Ambassador"?
Customers can unlock benefits by completing a series of actions or tasks and, upon successful completion, receive a badge that entitles them to a corresponding use. For example, award "Social Media King" badges for sharing posts three times on social media. This way, after repeated interaction on social networks, customers receive a badge they can exchange for a benefit, such as free shipping for six months. Or turn your customers into brand ambassadors and award "Brand Ambassador" badges for referring four friends to your loyalty programme.
The loyalty programme thus sets specific tasks that must be achieved or completed to record progress and thus unlock certain rewards. Benefits include virtual badges, trophies, and physical rewards such as free or reduced products and services, discounts, or other tangible prizes. Virtual rewards also play a significant role psychologically: they give customers a reason to engage and stay attentive.
Gamified loyalty programmes can motivate customers and bind them to one's brand.
The interaction goes beyond mere transactions and creates fun and experiences that promote an emotional bond between the customer and the company and brand. Those who want to integrate gamification into their loyalty strategy have various options: Tier levels, badges, challenges, and competitions are ideal ways to increase customer engagement and incentivise and reward desired behaviour.
Integrating gamification elements into the right loyalty strategy is becoming more accessible with the increasing use of modern and flexible eCommerce architectures. By choosing appropriate modular building blocks in Composable Commerce, companies have more opportunities to optimise the user experience and improve their customer loyalty. The overarching goal remains a personalised and seamless end-to-end user experience and the most excellent possible flexibility to target individual customer needs and foster customer loyalty in various ways.