Dec 18, 20235 min read

How Gamified Loyalty Programs Fuel Growth: The Future Of Marketing Strategies

Updated: Jul 4

Imagine Alia and Ben: two customers entering the shopping world looking to improve their fashion choices.

Alia has been shopping with your brand for quite some time now, so you give her a brief about your loyalty programs - points, discounts, and what not. Interested, Alia signs up. Meanwhile, Ben is exploring your competitor brand, which has been around for quite some time.

After returning home, Alia signs up in your app and is immediately drawn to the vibrant display of your loyalty program – a treasure map of points, badges, and leaderboards. Meanwhile, Ben is trying to comprehend the complicated point system from a dull pamphlet that your competitor had shared with him.

Alia's enthusiasm grows with the personalized discounts & offers your gamified loyalty program offers. She starts engaging daily with your app, taking on challenges, unlocking rewards, and recommending your products. Ben, on the other hand, tried to follow the point system for some time but ended up forgetting about it due to a lack of incentivization & personalized recommendations.

Months later, Alia is a loyal advocate, and she's even become a top influencer within your loyalty program, inspiring others to join. Your brand is now even pulling loyal followers from your competitors.

Promotional graphic with detailed offers

Need to inspire customers like Alia? Enter the Gamification Market!

Drive Market Growth with Gamification of Loyalty Programs

This is the power of gamification – the ability to transform a bland loyalty program into a captivating experience that drives engagement, builds loyalty, and fuels business growth.

Let's look at some real Gamification strategies used in marketing:

Example 1: Starbucks Rewards – Increased Customer Engagement

Starbucks' original loyalty program was based on a simple punch card system. Customers received a punch for each purchase, and once they filled out the card, they received a free drink. This approach was straightforward but lacked excitement and personalization.

The Starbucks Rewards revamped program replaced punches with stars, which can be earned for purchases, online orders, and even social media interactions. Stars unlock a variety of rewards, including free drinks, food items, birthday treats, and exclusive experiences. Additionally, the program features tiers, with higher tiers offering more benefits and faster progression. Results: The gamification of Starbucks' loyalty program has been a resounding success. The program boasts millions of engaged customers and has generated billions of dollars in revenue.

Example 2: Nike SNKRS – Improved Brand Loyalty

Nike's traditional loyalty program rewarded customers with points based on their purchases. These points could be redeemed for merchandise discounts and other rewards. While this approach provided some value, it failed to truly capture the passion of sneaker enthusiasts, Nike's core target audience.

Enter Nike SNKRS. This app gamifies the shopping experience by offering:

Early access to limited-edition releases
Exclusive challenges with unique rewards
Behind-the-scenes content and interviews with athletes
A community for sneaker enthusiasts to connect and share their passion

Results: Nike SNKRS has become a game-changer for the company. The app has become a go-to platform for sneaker lovers worldwide, driving significant growth in Nike's online sales and creating a loyal community of engaged customers.

Why Gamified Loyalty Programs Matter

Let's face it, traditional loyalty programs can be a bit… meh. A punch card here, a point system there – it's enough to make even the most dedicated customer yawn. But here's the thing: loyalty programs are incredibly valuable. They help you keep your customers coming back for more, which translates to increased revenue and profitability. Gamification strategies in marketing are just an add-on tool to make these incredible programs work even better!

Turn loyalty into a passion: Experience Market Growth with Gamification

Gamified loyalty programs aren’t just about rewards - it's about tapping into the primal human desire for challenge, progress, and belonging. The gamification market focuses not only on incentivizing purchases but also on creating a community of passionate brand champions who become actively invested in your success.

Decoding Customer Behaviour: Gamified Loyalty Programs Light the Way

Forget the foggy landscape of customer preferences. Gamified loyalty programs act like powerful searchlights, illuminating the hidden paths of your customers' desires. As they explore, they leave behind a trail of valuable data – their clicks, their choices, their secret loves.

For example, Sephora, the beauty giant, uses customer data to craft personalized recommendations accurately. No more wandering through aisles of irrelevant products! Instead, limited-edition eyeshadow palettes whispered about on your wishlist suddenly appear right before your eyes. It's a VIP experience tailored to your unique desires.

But this journey isn't a one-way street.

The gamification market aims at inviting your customers to join the adventure, transforming feedback into a collaborative quest. Ditch the tedious surveys; loyalty programs can also be turned into a feedback bonanza by offering rewards for customers sharing their thoughts. This two-way exchange also leads to insights and platform improvements – happy customers, happy brand!

This powerful data duo is the real magic of gamified loyalty programs. By analysing these digital footprints, you unlock a gold mine of actionable information – what they love, what they avoid, and what makes them tick. This knowledge empowers you to make decisions that resonate with each customer's unique rhythm.

Social Media: A Gamified Playground

People love to share! You can leverage this quality to experience market growth via gamification by encouraging user-generated content (UGC) through contests and challenges. Red Bull, for instance, regularly throws down gamified challenges on social media, urging fans to share their boldest stunts for a chance to win exciting prizes. This not only generates buzz and engagement but also creates a brand-loyal content that authentically resonates with audiences in the vast gamification market.

But community goes beyond just sharing. Gamification fosters a sense of belonging by creating online forums, leaderboards, and virtual events. Think of it as a digital campfire where members can connect, share experiences, and compete in friendly challenges. This creates a sense of camaraderie and loyalty, turning your customers into brand advocates who actively promote your program.

Mobile Apps: Convenience with a Twist

Gamification takes mobile loyalty apps to the next level. Imagine a seamless experience where users can earn rewards, complete challenges, and track their progress with a few taps.

Flyy's client Dealshare, for example, used gamification to transform their mobile app into a loyalty hub, boosting engagement and user satisfaction. We added multiple games and contests built with a seamless user experience & convenience to provide more avenues for issuing game points, which can be used to get purchase discounts. Within a year, the number of game participants increased 3X and along with it, increased the number of orders.

Push notifications are another secret weapon in the gamification strategies for marketing. Imagine timely reminders about challenges, personalized reward updates, and exclusive offers delivered straight to your customers' pockets. Just like mobile game apps, gamified loyalty programs can leverage push notifications to keep users engaged and coming back for more.

Challenges? We Got This

Naturally, every journey has its bumps. One common challenge in gamified loyalty programs is user fatigue. To keep things fresh, it's crucial to ensure inclusivity. Offer diverse challenges and rewards that cater to different customer segments, just like Target's gamified loyalty offerings that cater to various interests and behaviours.

By staying inclusive, balancing rewards, and constantly innovating, you can overcome challenges and keep your program thriving. Remember, the gamification market isn't a one-size-fits-all solution. The key is to find the perfect balance that engages your audience and drives results.