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How can you gamify your loyalty program to increase engagement?

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Loyalty programs are a great way to reward your customers and encourage repeat business. But how can you make them more fun and engaging? Gamification is the answer. Gamification is the use of game elements and mechanics in non-game contexts to motivate and influence behavior. In this article, you will learn how to gamify your loyalty program to increase engagement and loyalty among your customers.

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1 What is gamification?

Gamification is the application of game design principles and techniques to non-game situations, such as loyalty programs, marketing campaigns, education, or health. Gamification can help you create more engaging and rewarding experiences for your customers, by tapping into their intrinsic and extrinsic motivations, such as achievement, competition, curiosity, social interaction, or rewards. Gamification can also help you collect valuable data and feedback from your customers, by tracking their actions, preferences, and progress.

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2 How to gamify your loyalty program?

Gamifying your loyalty program can be a great way to engage customers and motivate them to stay loyal. Points, badges, leaderboards, challenges, and feedback are all common elements and strategies you can use. Points can measure and reward customer activity, such as purchases or referrals, and can be redeemed for rewards. Badges are visual symbols that represent achievements or milestones and can be linked to rewards. Leaderboards show customers' performance or status and create competition or cooperation. Challenges are tasks or goals customers can complete to earn points or badges. Finally, feedback reinforces positive behavior and provides guidance or tips. All of these elements can help you create variety, novelty, competition, comparison, cooperation, surprise, delight, curiosity, and social interaction in your loyalty program.

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Julia Malachowski

Amazon Marketplace Manager | E-Commerce Growth Manager
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Amazon sellers looking to enhance customer engagement through gamified loyalty programs can employ two effective strategies. Firstly, offering enticing rewards, such as discounts, exclusive products, or early access to sales, when customers reach specific purchase milestones can provide a strong incentive for participation. Additionally, organizing limited-time events exclusive to loyalty members can create a sense of urgency and excitement. These events can include special promotions or early access to new products. By incorporating these gamification elements, Amazon sellers can not only increase customer engagement but also foster brand loyalty and drive more sales.

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Elizabeth A. Coluby, MBA

Strategic Growth for Visionary Leaders | Empowering Business Growth | Strategic Consultant & Leadership Coach | Expert in Strategy, Innovation & Customer Experience
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Duolingo does a terrific job with gamification with teaching languages. You have a challenge to do 1 lesson a day (3-5 minutes) to keep your streak going. There are challenges to earn a certain number of points in a month (to earn more points). Some challenges paired with a friend. You can use your points to make your experience better, e.g. buy freezes (in case you forget to log in one day). The lessons themselves are entertaining with the various characters and their voices. There are lessons you listen to and translate, others you listen to and form the sentence. Stories you read. Stories read to you and you answer questions. They do a good job of teaching in a variety of ways so you can learn. PS I’m a customer/fan, not an employee

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3 Why gamify your loyalty program?

Gamifying your loyalty program can have many benefits for your business and your customers, such as increasing engagement, value, and insight. Customers are more likely to participate, stay loyal, and be satisfied when they find the program fun and interactive. Gamification can also influence their behavior, such as increasing purchase frequency or variety. Furthermore, it can help you collect data and feedback from customers to better understand their needs and wants. Additionally, it can be used to test and validate new ideas, features, or campaigns. In conclusion, gamification can be a great way to strengthen customer relationships and loyalty.

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Elizabeth A. Coluby, MBA

Strategic Growth for Visionary Leaders | Empowering Business Growth | Strategic Consultant & Leadership Coach | Expert in Strategy, Innovation & Customer Experience
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If you know your ideal client, you understand what motivates them and will keep them coming back. It could be access to a new product or service early, a higher level of service or exclusive access. Building a loyalty program based upon those insights helps you attract your ideal client as well as retain them. We stay at certain hotel chains and fly certain airlines because we’ve built up to levels of benefits that we appreciate - free upgrades, access to clubs, etc. The difference in price has to be pretty drastic to get us to chose another brand.

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4 How to design your gamified loyalty program?

Designing a gamified loyalty program requires careful planning, testing, and evaluation. To do so, you should first define your objectives and key performance indicators, and get to know your audience. Then, choose the game elements that are most likely to appeal to them, such as points, badges, leaderboards, challenges, or feedback. Lastly, it's important to test and iterate your program by collecting feedback from customers and stakeholders. By measuring the impact of your gamification on your loyalty program objectives and KPIs, you can make necessary changes to improve your program.

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Teresa Cain

Product & UX Leader | Innovation & Problem-Solving Expert | Author & Speaker
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Before you roll out a gamified loyalty program you must first have successful user adoption of your product or app and an engaging user experience that keeps them coming back to want to use your gamification over others. Consider offering gamification as part of your enrollment such as a 100 points, a free latte or 10 cents off your first fuel or charge for signing up to provide instant loyalty engagement, then give additional incentives for giving feedback on their first experience or additional purchases.

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5 Examples of gamified loyalty programs

The hospitality industry is full of gamified loyalty programs that can be used as inspiration or reference. For example, Marriott Bonvoy rewards customers for staying at their hotels and resorts through points, tiers, badges, and challenges. Customers can earn points for every dollar spent and redeem them for free nights, flights, car rentals, or gift cards. Additionally, customers can access different tiers of membership with varying benefits such as free upgrades or lounge access. Starbucks Rewards also uses points, levels, and rewards to gamify customer loyalty. Customers can earn stars for every dollar spent and redeem them for free drinks, food, or merchandise. They can also access different levels of membership with perks like free refills or personalized recommendations. Finally, Waze Carpool gamifies carpooling with points, badges, and rewards. Drivers and riders can earn points for every mile or minute they carpool and redeem them for discounts or donations. They can also access different rewards like free gas or free parking based on their points or badges earned.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you gamify your loyalty program to increase engagement?

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1 What is gamification?

2 How to gamify your loyalty program?

3 Why gamify your loyalty program?

4 How to design your gamified loyalty program?

5 Examples of gamified loyalty programs

6 Here’s what else to consider

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