why you should invest in gamification & loyalty programs
A gamified loyalty program provides a powerful set of tools to better engage your customers and induces emotions like excitement, intrigue, and happiness to influence specific actions. But it needs to be thoughtfully done in order to have the desired results.
When implemented with your loyalty program, gamification can deepen engagement, which ultimately leads to increased customer lifetime value (CLV).
It's a common misconception that offers are only transactional. But as we saw in the example above, that's not the case. Gamified experiences in your loyalty programs can be powerful because they enable marketers to combine transactional and non-transactional actions, which drive deeper engagement.
When brands implement AI and machine learning platforms, each step of the gamified experience is composed of personalized offers or events that encourage consumers to take action. In addition, there is progression and narrative crafted around the game steps to engage the customer further.
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What is a gamified loyalty program ?
Gamification incorporates game mechanics to increase customer engagement, improve sales, and strengthen brand loyalty. Allowing you to engage with customers in a modern way, a gamified loyalty program provides benefits to both you and your buyers.
Early gamification tactics often tacked simple game mechanics, like badges or cartoonish elements designed to feel like a video game, to existing loyalty programs. But those badges didn't convey any status or provide any meaningful value; they didn't build a relationship with customers.
A core concept in gamification is that the effort to achieve a goal must be balanced with the reward. Reaching a goal should be challenging but not frustrating, and the reward should be of sufficient value for the effort expended. But the key is that the overall effort to achieve the goal must be balanced.
common mistakes brands when implementing gamification.
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Competition is one main element required in a Gamification strategy, however it is important not to overlook the other crucial aspects such as positive reinforcement, collaboration, and teamwork.
Have you ever asked yourself, ‘what is the point of my game?’ If you can not answer this question then you are not likely to engage and captivate your audience.
Everyone likes to be rewarded right? Everyone likes to feel good about their accomplishments. But if you constantly reward users, what is the point?
It can be incredibly hard to sustain motivation. Motivation is the why, it is what will make someone care, and what will encourage a user to continue. If people are not engaging with your Gamification project then they are not motivated.
A common Gamification mistake is over-simplifying the strategy to focus simply on badges, points and leaderboards. There is A LOT more to Gamification than this.
before Implementing ga
Re-shape your approach to Gamification. Think of it as a program rather than a standalone project. Implementing long-term gamification can be achieved through strategy and thorough planning.
Think about the challenge you are trying to overcomes When you are creating your Gamification strategy, think about the challenge you are trying to overcome. Points and badges should be looked at as a way to recognise an achievement, not the reason for your users to do something.
Keep users motivated In order to maintain your users’ motivation and keep them playing you should imagine you were the player and plan around the question: “What is in it for me?” Ideally you should be able to give at least 5 answers to that one question.
Keep it simple for users. There is no doubt that rewards are a crucial piece in the engagement puzzle. Rewards are the way to motivate, drive engagement and keep users wanting more. However rewards have to be delivered in the right way.
Define clear goals In order to have an effective gamification design you must start with defining and having a clear understanding of what motivates your users and what your main goal is.
why gamification is important for your loyalty program
First it’s simply the fact that there are multiple steps in the offer, versus typical offers that you see today that are focused around one transaction. In a multi-step offer you can achieve a goal across multiple transactions.
Second is the fact you can incorporate any type of action into the offer. For example brands that have low transaction frequency can incorporate non-purchase actions so they can actually drive engagement with customers in between purchases.
Third, because you have multiple actions that go into an offer, you can show a greater reward because you’re asking the customer to do multiple things. It’s likely a reward that's greater than any they’ve ever seen before and that drives additional engagement as they’ll want to see what they need to do to accomplish that large reward.
All of those things combined with personalization drives greater relevance over time, helps the customer through a journey, and up levels your loyalty experience.
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