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Mastercard: The impact of gamification on loyalty strategies

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Mastercard's guide on gamification strategies for loyalty is covering best practices and benefits.

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Games are not only enjoyable but also gamification has evolved into a significant strategy for building customer loyalty, surpassing mere entertainment.

An integral facet of numerous effective customer interaction approaches today, gamification is gaining more prominence in loyalty initiatives due to its wide-ranging appeal and applicability across various sectors – spanning from wellness and dining to retail. By incorporating elements reminiscent of gaming, like accomplishing missions and accruing points, gamification introduces an enjoyable aspect to connecting with a brand. Whether it involves a consumer participating in a weekly educational game about their purchased car, enhancing their performance on a stationary bike, or receiving a promotional gift on their birthday month, these gamified experiences contribute to the brand-customer interaction.

Given the prevalence of conventional points-based loyalty schemes, the adoption of gamification strategies such as multi-stage challenges, games of chance, and mini-games aids brands in fostering engagement, gaining deeper insights into their customers, and distinguishing themselves from competitors.

Mastercard defines gamification as “the use of game mechanics and experience design to digitally engage and motivate people to achieve their goals,” as previosuly outlined in Gartner Research’s 2022 report, “3 Ways Marketers Can Use Gamification to Level Up the Customer Experience.” Simply put, gamification is a fun and effective way to enhance customer engagement, encourage desired behaviors from logging into an app to willingness to try a new product or share a recommendation on social, all while keeping a brand’s name top of mind.

Recent privacy regulations now mandate that online platforms must offer consumers the choice to either agree to or decline the use of cookies. When loyalty programs are clear about their privacy practices and empower consumers with control over their data, individuals will interact with more confidence. Utilizing gamification presents companies with an avenue to not only confirm user consent but also present consumers with an exhilarating and interactive means to willingly furnish the data they are comfortable sharing.

The most effective gamification initiatives find the right equilibrium between easy participation, sustained and active involvement, and a sense of competition. Whether it takes the form of a lively spin-and-win with confetti or the routine bestowal of promotional discounts every week, these strategies ultimately compensate customers for their ongoing interaction with the brand.

Constructing a lasting rapport involves delivering a distinctive experience and tapping into the consumer’s inclination to partake in playful activities and be acknowledged, beyond the mere act of making a purchase. However, it’s imperative that gamification is executed thoughtfully and effectively. 

Among the loyalty gamification best practices Mastercard’s team highlights (read more): 

  • Ground the gamification strategy in objectives 

  • Make customer exposure a habit

  • Connect the games to a conversion activity 

Mastercard on the benefits of gamification for loyalty programs?

  • Better brand awareness – A good gamification strategy will have games tailored to different segments of the customer base and personalized to their tastes. Consumers will spend more time with the brand if the gaming experience is fun and engaging. That sense of familiarity and positive associations with the brand helps keep it top of mind when making a purchase. Furthermore, loyalty programs may benefit from members sharing their positive experiences and generating buzz about them among friends and family.
  • Increased conversion rates – Sometimes, a reward or discount earned by playing a game can encourage a consumer to take the step of becoming a customer. When consumers play games, they can then earn points that can be redeemed for discounts or rewards. The result is greater conversion rates as consumers use the rewards and discounts to make purchases, in the process taking the next step of becoming a customer with a discounted purchase.

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Source: Mastercard

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