Games and Gamification. How to retain customers in the age of efficiency

Easy shopping and smooth checkout have been key challenges of e-commerce over the last decade, and it seems that they are getting addressed in many cases. As the cost of new user acquisition rises, the need for better retention and loyalty takes over the top of the challenge list. How can a valuable relationship with customers be built when the time spent shopping is decreasing? Simonas Sturys , Nordcurrent’s Head of Marketing shares his insights.

Loyalty programs are supposed to strengthen customer loyalty. However, a typical loyalty program often consists of coupons, discount codes, or newsletters. In the pursuit of efficiency, the loyalty aspect is being streamlined alongside the entire shopping process. Merely logging into your e-shop account grants access to "special" discounts. Yet, to establish a connection and foster a relationship, partners need to engage in dialogue, even if it’s just a lighthearted small talk.

Innovative companies have recently been exploring gamification to cultivate relationships with users both online and offline. Everyone enjoys playing; it’s just that different people prefer different types of games. At the core of any game lie the elements of attempting and achieving victory. Through this process, the hormone dopamine is released, inducing the feelings of pleasure, fostering positive memories, and stimulating a desire to replicate the action. Therefore, game elements are actively integrated into education, business, marketing, and shopping.

How does gamification work?

Mobile game developers likely understand better than anyone else what it takes to engage a new user, motivate them to come back and even make in-game purchases. A great mobile game must cater to the motivations of various player types. Achievers are driven to conquer all available challenges; explorers are perpetually seeking what lies beyond each level and killers thrive on competition and winning against others. And of course, there are other player types – strategists, designers, owners, etc. Hence, retail businesses can learn a lot from mobile games on how to effectively engage with users.

A loyalty program that entails collecting points with the aim of earning a greater discount or voucher, is already a solid foundation for gamification. However, what is lacking here is transforming the system from merely an accounting task for a client into something that genuinely enhances loyalty. Here are my suggestions for the next steps.

• Give them control. Players need to have choices and control over them. For example, they can choose to spend points to purchase the offered product, play the lottery for a chance to win more, accumulate points for future use, or share them with a friend. Lithuanian grocery chain IKI has implemented these features quite smoothly.
• Reward their time and effort, not just with money. Loyal customers typically possess extensive knowledge about the brand. Reward them for sharing their knowledge and energy. For instance, offer points for writing recommendations, sharing shopping or gaming experiences with friends, referring new customers, and engaging in-game related tasks like solving crosswords.
• Make them proud. Introduce membership levels, that unlock new opportunities, not necessarily higher discounts. My personal observation suggests there is little distinction between Booking.com Genius 2 and Genius 3 levels, which also raises curiosity about why they stopped at 3.
• Let them immerse themselves in your story. However, there is no story without a character a.k.a. protagonist. A character can create a dialogue between the brand and the user. ?Louis the Game by 路易·威登 is an excellent example, with the protagonist Vivienne guiding the user through the history of the iconic brand.

These features would lay a foundation for effective gamification, but this is just the beginning. Environments, animations, avatars, badges, leaderboards, and fan groups are all elements commonly found in games, yet they’re equally applicable and impactful within brand loyalty programs.

From burgers to fashion collections: how brands immerse themselves into games

Investing in gamification helps e-commerce platforms build customer loyalty. Meanwhile, brands are exploring popular games as a channel to not only expand their consumer reach but also engage players in virtual experiences that strengthen relationship with the brand or deepen their knowledge of its products.?

Open-world games, such as Roblox or Minecraft, as well as simulation games, hold particular appeal for brands. The latter, especially, are ideal for real-world brands when a contextual or industrial fit is found.

Nordcurrent has already successfully integrated brands such as Coca-Cola, Hard Rock Cafe , FC Barcelona, Marc Cain , THOMAS SABO and Agn? Kuzmickait? into its simulation games.

The latest integration in Cooking Fever has been done with the global restaurant chain TGI Fridays . The virtual rendition meticulously mirrors the elements of the iconic restaurant: menu selection, kitchen, dishes, as well as the main interior and exterior design. This integration received widespread acclaim from fans of both Cooking Fever and TGI Fridays. Within the first three weeks, over 6 million people experienced the virtual restaurant. Subsequently, the TGI Fridays restaurant is visited by players an impressive 3,5 million times every month.

When measuring the impact of media, it’s unfair to solely benchmark reach numbers against other traditional channels. In games, players often spend at least half an hour interacting within a single restaurant, and some may return there for weeks, engaging in multiple sessions per day. During gameplay, players are wholly focused and immersed in the activity. This results in a profound connection with the brand, unparalleled by passive media consumption, even by watching a football game.

The fashion game Pocket Styler recently showcased its fourth integration of real-life collection with Thomas Sabo, a jewelry brand with over 190 outlets worldwide. Thomas Sabo, along with other brands featured in the game, sparked extensive discussions among Pocket Styler’s 200 thousand followers. Avatars dressed in branded virtual clothing were widely shared across numerous fan groups.?

Collaborations in Pocket Styler extend beyond brand engagement to deliver tangible performance metrics. Branded items within the game contain links that direct users to the respective products in real-life stores. This approach enables the campaign to be measured in terms of traffic and conversions, providing valuable insights into its effectiveness.

So, where to start?

There are numerous examples of how various brands are adapting gamification. However, there is no one-size-fits-all solution, and there are no established industry standards to benchmark KPIs yet. I suggest 3 simple steps to begin the gamification journey.

Right context. It’s important to assess the audience and value fit. Gamification should strengthen the consumer’s relationship with the brand and clarify its values rather than confusing them. For example, a game, designed to improve financial literacy could naturally align well with a bank or fintech business.

Consider the user journey. The steps must be simple, easy, and understandable to everyone. While most consumers still seek a pleasant, straightforward shopping experience, any gamification should be entirely voluntary and non-disruptive. However, a system of levels that encourages increasing engagement can also be beneficial. Customers who actively engage in gamification can become potential brand ambassadors, often representing a highly valuable asset for a brand.

Be brave and experiment now. Games and gamification solutions are continuously evolving. By observing trends, exploring use cases, frequently testing available solutions, and collaborating with game developers, you can discover what truly resonates with your audience and sets you apart from the competition.

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