Research conducted by CataBoom, an SaaS-based gamification and rewards platform in the US partnered with Mastercard, reveals that integrating a game into a loyalty program can boost a brand's website traffic by up to 50% and its subscriber base by 25%.
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GLOMost individuals possess an inherent desire to succeed, whether it involves accumulating points, completing a journey, or simply gaining recognition for their customer loyalty. In response to this fundamental human inclination, retailers are increasingly turning to gamification. This approach caters to the innate human desires for acknowledgment, rewards, status, and achievements. Simultaneously, gamification fosters engagement and enhances marketing outcomes. Recognizing the acknowledged value of blending in-person and online loyalty initiatives, gamification emerges as a novel tool to promote engagement beyond physical stores, inspiring customers, unveiling new products, and ultimately driving sales.
Beyond being an entertaining and effective method to elevate customer engagement, gamification has the potential to influence consumer behaviors. This includes activities like logging into an app to explore a new product or sharing recommendations on social media. Gamification can significantly elevate brand awareness, increase conversion rates, and enable retailers to encourage customers to share more personalized information, which can be utilized for crafting targeted digital marketing campaigns.
The most successful gamification programs strike a balance between simple participation, active and consistent engagement, and healthy competition. Whether employing confetti-blasting spin-and-win activities or weekly distribution of promotional discounts, these tactics reward consumers for sustained engagement with the brand.
Research conducted by CataBoom, an SaaS-based gamification and rewards platform in the US partnered with Mastercard, reveals that integrating a game into a loyalty program can boost a brand’s website traffic by up to 50% and its subscriber base by 25%. Once consumers are engaged in a brand’s website or app through gaming, it opens opportunities for the brand to promote its products and drive sales.
Gamification, as defined by Cambridge University, is the practice of infusing activities with game-like elements to make them more interesting or enjoyable. It transforms routine tasks into enjoyable experiences, often incorporating elements such as point scoring or competition to encourage engagement with a product or service. An example in the US restaurant industry illustrates companies leveraging gamification in loyalty programs to gain insights into customer preferences and enhance dining experiences.
Mastercard collaborated with a quick-service restaurant on a localized multi-step challenge-based campaign, presented as a single “game board” within the mobile app. Users received real-time rewards by completing challenges, resulting in a 4.5-times increase in purchase frequency during the campaign and a 2.3-times increase in post-campaign purchase frequency.
From luxury brands to supermarket chains, retailers are recognizing the influential role of loyalty programs in fostering customer loyalty. As consumers now expect businesses to understand their needs across various channels, gamification is emerging as a strategy to create engaging brand ecosystems within loyalty programs.
Best practices recommended by Mastercard for loyalty gamification involve grounding the strategy in specific objectives, establishing a routine of gamification experiences for customers, and connecting games to conversion activities to deepen the customer-brand relationship. These practices contribute to customer engagement and retention.
Looking ahead, Mastercard anticipates the continued expansion and evolution of loyalty gamification. As gamification becomes more personalized at scale, the power of loyalty programs will be enhanced through more engaged members. The company also foresees ongoing evolution in gamification tactics alongside technological advancements, such as the rise of Web3 and the increasing popularity of AI. Leveraging technology, companies can better understand customer motivations, leading to a more personalized and differentiated gamification experience. Mastercard collaborates with brands to develop and execute loyalty strategies, offering products and services for top loyalty brands and providing strategic consulting, program design, diagnostic services, and customer journey mapping.
Source: Mastercard
