Loyalty is the name of the game for marketers today, since keeping a customer is 5x less costly than acquiring new ones and nearly half of a store's revenue is created by only about 8% of their most loyal customers.
As transactional deals - like coupons and percent-off discounts - have proven less and less effective, brands are beefing up their customer loyalty programs to set themselves apart and drive greater engagement. This is critical, considering that 58% of consumers said they’re more loyal to brands than they were five years ago, but the majority of our Brand Loyalty 2020 report respondents (63%) only belonged to between one and three loyalty programs, meaning a program must deliver exceptional experiences to make the cut. Also, 77% of consumers feel brands could be doing more to earn their loyalty.
Increasingly, brands are leveraging gamification or behavioral economics in these programs as a differentiator and a key component in the personalized, customer loyalty loop. Gamification requires using game elements or design techniques as part of your marketing strategy to influence customer behavior and engagement.
If you're interested in employing gamification in your customer loyalty programs, here are some tips to keep in mind:
As brands look for ways to increase customer loyalty and reap the rewards, they need to consider new ways to engage with customers. Gamification in marketing is an effective tool that not only strengthens bonds between brands and consumers, it can help drive NIR to understand the effectiveness of marketing efforts and grow sales and revenue dramatically.
Interested in learning more? Download the new white paper, "Beyond the Fun, Gamification Adds Science to Your Customer Loyalty."