Gamification is among the hottest trend in Loyalty Solutions. It is a non-transactional engagement approach and a compelling tool for early engagement which keeps your audience returning back thereby increasing their activity, retention and advocacy.

Gamification borrows video game features such as points and leader boards to reward the audience. It is a very interactive engaging technique for any kind of Loyalty Solutions. The technology may be new but the marketing principles behind it are tried and tested.

Acquiring new consumers is expensive. But reducing churn can greatly impact a company’s financial health. Roughly retention by 5% can generate 25%-35% increase in profit.

Gamification and the Reward structure:

Tailoring the techniques to suit your diverse audience is very important. The Loyalty Solutions must appeal to the end user making him an addict to it.

Several reward structures can be empanelled in a gamification environment.

Here I am trying to elaborate a few

1. Points Based Structure:

A point structure is the most common in a loyalty Solution Program. Participants earn points based on their activities, which translates into rewards. This method works well for businesses where frequent purchases happen.

Though the process is easy what really matters is the ease of the redemption process and the rewards availability. Generally the redemption process is complicated which affects the loyalty Solution.

For a successful point based system it should be hassle free with no hidden rules.

2. Achievement based:

This approach is an interactive mode, where the participants are expected to achieve something to unlock benefits. Via such a system the audience engagement and interaction with the brand would increased and also their behaviour and taste judged better. We can introduce a tier structure here wherein every level attained offers participants more rewards for more engagement.

With an achievement system, companies can recognize when, where, and how customers interact with their brand and what is their area of interest. Then the loyalty solution can be updated to align with particular Participant’s interactions and interest.

A feedback mechanism can also be included through question and answer sections in the loyalty solution structure. Also concept of referrals to earn points would work great in a gamified environment. Participants get rewarded for sharing your company with others and you expand your customer base at the same time.

3. Competition based

People like a healthy competition. So competing against one another and featuring a leader board with scores updated daily would be an interesting idea.

This would increase their quality time spent on the brand and also auto educate them about various upcoming new products and campaigns. Thus an industry where you need to teach your audience about product usage , to make the best out of it , this idea comes very handy.

When Gamification Fails

Not every gamification strategy works effectively. Keep your offers relevant to your target audience and make you strategy and functionality accessible. Well-designed games highlight product benefits and add value to the customer experience.

Nonetheless, gamifying Loyalty Solutions requires an understanding of the discipline and the audience if it is to succeed. Once properly strategized it’s a great tool to be used in today’s android world.