The Gamification of Loyalty: Engaging Customers in a Playful Way

We all know that a much sort after attribute of a D2C brand is having loyal, high value, repeat purchasers and ones who act as your brand ambassadors with their peers. But getting there (without a magic wand) can seem like a never ending pursuit. One approach that has gained significant traction in this pursuit is the gamification of loyalty.

We aren't suggesting that all loyalty programmes need to look like a computer game but, by infusing game elements into loyalty programs, you can transform the way customers engage your brand, creating a more enjoyable and interactive experience.

So without remodelling your programme on 1990's Super Mario how can you achieve this?

Firstly programmes are being branded - a loyalty programme that can hold its own and stands out from the crowd, think Tesco Clubcard, The North Face XPLR Pass and The Body Shop Love Your Body Club. By having a brand identity for your loyalty programme your customers are now engaging with two of your brands, maximising their exposure to your messaging.

Next, let's look at some of the feature of a gamified loyalty programme and what makes them so engaging...

Points, Rewards, and Levels:

One of the most prevalent gamification techniques is the use of points, rewards, and levels within loyalty programs. Customers are assigned points based on their purchases or interactions with the brand. These points can be accumulated and redeemed for rewards, exclusive discounts, or special privileges. To add a sense of progression, loyalty programs often incorporate tiered systems, allowing customers to unlock higher levels as they accumulate more points. The desire to reach the next level and unlock additional benefits motivates customers to continue engaging.

A great example comes from Blume who have branded the pinnacle of their rewards programme as Blumetopia.

Kiehls is another example of a tiered based programme with rewards increasing as you move up the scale.

Badges, Achievements, and Challenges:

Drawing inspiration from video games, loyalty programs now feature badges, achievements, and challenges. Customers can earn badges for specific actions or milestones, such as making a certain number of purchases or referring friends to the program. These virtual accolades provide a sense of accomplishment and recognition, appealing to customers' innate desire for achievement. Challenges or missions are also employed to encourage customers to complete certain actions, such as writing reviews, sharing content on social media, or participating in surveys.

The loyalty programme from pet food brand Edgard Cooper incentives moving up the loyalty tiers by having unique challenges within a tier - this stops consumers from having to do repeat actions for loyalty points.

Personalisation and Social Engagement:

Effective gamification of loyalty involves personalisation and social engagement. Loyalty programs can be tailored to individual preferences and behaviour patterns, offering personalised challenges or rewards - customers feel that the program understands their unique needs and desires. Additionally, incorporating social elements into loyalty programs allows customers to connect with each other, forming a community around the brand.

The Turmeric Co loyalty programme places a high value on social engagement with the most points being earnt for video reviews - great content for their YouTube channel.

Surprise and Delight:

One aspect of gamification that adds an element of surprise and delight is the unexpected rewards or perks. By introducing elements of surprise, businesses tap into the psychological concept of variable rewards, where the anticipation of an unknown reward keeps participants hooked.

Starbucks Rewards have bonus days when customers can earn double points (stars) but you need to be signed up the mailing list to know when they are happening.

Does your loyalty programme need a revamp to scale up its potential or are you starting from scratch? By tapping into customers' inherent desire for achievement, rewards, and competition, you can foster stronger emotional connections and brand loyalty and collect valuable insights into your consumers behaviour and actions.

Out of the box loyalty programmes can get you so far but personalised, gamified programmes can give you the boost you need to get to the next level of loyal, high value, repeat purchasers. Want to level up your loyalty programme? Get in touch.