Level up your loyalty: Four ways gamification supercharges customer retention

Keeping customers engaged and loyal is essential for success in retail. One powerful strategy to achieve this is through gamification – an innovative approach that integrates game-like elements into loyalty programmes.

By offering more than just transactional benefits, gamified loyalty apps create an exclusive and enriching journey for customers.

From earning points with every purchase to redeeming rewards through user-friendly mobile platforms, these programmes foster a sense of community and enhance the overall shopping experience.

Here are four compelling reasons why gamification is a game-changer for retail loyalty schemes.

1. Boosting customer retention

Keeping your existing customers around is more cost-effective than trying to win new ones. In fact, according to Zippia research in 2023, a mere 5% increase in retention can lead to profits soaring by anywhere from 25% to a staggering 95%.

Gamification enhances customer retention by making interactions with your brand more enjoyable and rewarding through digital engagement, no matter where customers are.

A study of 2,000 consumers by marketing agency Reflect Digital recently found that when customers can earn points, complete challenges or receive rewards through gamified mobile apps or online platforms, more than 60% typically make purchases.

At Trust Retail, our customers have expressed that the thrill of digital gameplay keeps customers engaged with their brand, turning one-time buyers into loyal patrons.

2. Creating brand advocates

Loyalty programmes turn happy customers into enthusiastic brand ambassadors, leading to powerful word-of-mouth promotion that money simply can’t buy.

In fact, an analysis by advertising giant Ogilvy in 2014 revealed that 74% of customers said word of mouth influences their shopping decisions.

Gamification takes this a step further by encouraging customers to share their positive experiences with friends and family.

A well-designed gamification strategy includes games tailored to different segments of the customer base and personalised to their tastes.

One of the key benefits Trust Retail stresses to clients is that this not only increases brand awareness, but also creates a sense of familiarity and positive association with the brand, keeping it top of mind when making a purchase.

3. Gathering valuable data and insights

Gamification programmes provide a treasure trove of insights into consumer behaviour by leveraging transactional data and digital footprints.

Loyalty solutions, like the one Trust Retail offers, enable retailers to refine customer experiences and tailor marketing strategies to suit individual preferences.

When customers participate in gamified activities across digital channels, they leave behind valuable data about their preferences, habits and engagement levels. This data can be analysed to understand what drives customer loyalty.

Additionally, a study by mobile agency Goama found gamification can increase trial usage by 54% and clicks to buy by 15%, offering even more opportunities to gather actionable insights and improve customer targeting.

4. Maximising lifetime value

Loyal customers don’t just make one-off purchases; they contribute significantly to your revenue over time. For example, Starbucks has grown its membership by a colossal 25%, with 40% of all sales attributed to loyalty members.

Gamification amplifies this effect by satisfying a fundamental human desire for recognition and rewards.

At Trust Retail, we encourage retailers to think about this when approaching loyalty programmes. Whether it’s through collecting points, completing a journey or simply being acknowledged for their loyalty, customers are motivated to continue engaging with the brand.

According to mobile specialist CataBoom, increased engagement can lead to a 50% increase in web traffic and a 25% increase in subscriber base, providing more opportunities for customers to interact with the brand and make purchases.

In conclusion, gamification is a powerful tool that can transform your loyalty programme into an engaging and effective customer retention strategy.

By boosting customer retention, creating brand advocates, gathering valuable data and maximising lifetime value, gamification can supercharge your retail loyalty scheme and drive long-term success.

A customer engagement programme like Trust Retail’s Loyalty solution empowers retailers to foster stronger customer relationships, ensuring a personalised and cohesive omnichannel experience.

Embrace the game and watch your customer loyalty levels rise.