Level up your loyalty programme: Gamification for increased customer loyalty and customer engagement

Level up your Loyalty-Program

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Gamification for increased customer loyalty and more customer engagement

Contests, badges, and tier levels - companies increasingly use different gamification elements in loyalty programmes to incentivise customers to interact with their brand and motivate them to increase purchases and spending.

Gamification is a transfer of game-typical elements into other contexts with the aim of achieving a change in behaviour or an increase in motivation on the part of the customer.

Gamification

What exactly is gamification?

Gamification is the transfer of elements typical of games into other contexts to achieve a change in behaviour or increase motivation on the part of the customer. In the context of customer loyalty programmes, this refers to awarding points for specific interactions and actions or participation in competitions and challenges in exchange for various benefits and rewards.

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.

How gamification works

If you want to play the game, you have to know the rules – How does gamification work?

What exactly can gamification look like in the context of loyalty programmes? Various possibilities are available to establish a gamified loyalty programme, such as tier levels, badges, challenges, and competitions. This creates a competitive situation where customers want to generate progress. This can motivate customers to continuously use certain products or services to achieve positive progression and secure specific badges that can be redeemed for attractive benefits and rewards.

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Next Level

Next level: Badges and insignia

Let's talk about badges and insignia at the next level. A loyalty programme based on badges and badges allows for a fun and interactive customer engagement. The aim is to encourage customers to interact with the brand regularly and develop new habits.

Challenges

Challenges, competitions and contests

In small challenges and competitions, tasks must be completed quickly to benefit from advantages. After the set time has elapsed, all those who have completed their tasks receive a reward.

KPS Customer Loyalty

When incorporating gamification into a loyalty strategy, what factors should be taken into account?

Basically, companies should ask themselves what their target group's preferences and needs are and whether they are actively engaging with your brand at all at this point in time. Suppose you want to use gamification as part of your loyalty strategy. In that case, you should first and foremost understand what makes your target group tick to prevent customers from quickly becoming bored and leaving.

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