5 Benefits of Gamification
To Level Up Your Customer Retention Strategy

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Written by Franco Varriano.

This is a guest post from Apple Pineda. Apple has served a number of clients as a content marketing specialist for 3 years. She’s a wanderlust in the making, often seeking adventures to live life to the fullest. She’s a writer for Avail.at, a company that specializes in digitizing rewards programs for your employees or customers.

1. Overview

Gamification has been used as a marketing strategy even before the term was popular. However, it has only recently become an institution and a recognized strategy for customer retention despite its whole idea of encouraging someone to go to a store and buy something.

Gamification can be the collection of points or freebies, or a compilation of stamps for redeeming an item later on. The important thing to remember, though, is that there are aspects of a game which should make it fun and create an urgency so that regular customers would want to buy more.

As part of a customer loyalty program, gamification provides the following key benefits:

2. Increased Sales

A rewards program motivates customers especially when the prizes are up front, and they can see that the points are convertible to cash. They can also be motivated by the promise of being able to redeem the points at a later time. The store can use the reward system to tap into the market and get them going. Even if the customer has not been buying, the store can throw them points which they can use in the shop. The store can choose for these items to be only available for reward conversion.

Even those who don’t regularly go to the store would go only to use their points. While at the shop, the customer can find other items that catch their fancy as well.

3. Non-Monetary Rewards

These customer rewards do not need to be in the form of money when redeeming the points for goods at a fixed exchange rate. Typically, most point rewards system peg each point as equivalent to a dollar. The points, however, cannot be directly converted to cash, but can be used to pay for items bought at the store. This conversion translates to a discount for the customer, as well as instant gratification for the customer.

Customers know that the more purchases they transact, the more discounts they can have. The items for sale in this manner do not have to be specifically made or bought for this purpose, as they can also be old items up for sale. Having a quick inventory roll creates a bigger impact on the company ROI.

4. Pride of Ownership

This is akin to being a fan boy or fan girl, as the customer feels as if they have a stake in the company, or that they own part of it because they have the points to show for it. There is the feeling of excitement when buying items which translate to stamps on a card or to points which go toward redemption.

The new owner of the redeemed prize is proud of the special edition Starbucks gold card. When you finally redeem the prize, the cost of all the items bought becomes insignificant to the eyes of the customer.

5. Cheaper Than Rebates

The gamification points can be used to buy assorted items or be used for purchasing a limited edition sale item. Some vendors or service providers use gamification points for big expensive items. For a few points, the items may be small and non-essential like pens or stationery. However, when more points are earned, redeemed items become substantial such as aor television.

When you consider the cost of the prizes, these can cost a fraction of the value of the points being redeemed. Each of the items purchased cost less than a comparable discount on the items bought to reach the point level.

6. Promotes Brand Loyalty

When a customer enjoys the store’s rewards system, he will gladly come back and buy more products. At some point, when given a choice between going to a store with slightly less expensive prices that they do not frequent, and a store where they have a sizable stake in rewards points, they would go to the latter. Customers know that when they frequent a shop with a reward system, they can pile up their points and get in-store sale items.

Making the buying process a game where rewards are given to the customer allows them to feel happy about themselves. Coupled with time limited offers, they would have a better customer experience as they receive freebies or special offers. The store tries to keep in touch with them in every possible way through marketing materials that remind them of events and other benefits for their points.

7. Conclusion

If you’re an ecommerce merchant and don’t have automated email marketing campaigns setup for your store, you’re losing money. Right now.

Rare.io makes it easy to start using automated email campaigns for common challenges like: Welcome Series, Abandoned Carts, Order Follow-up emails and more! You can learn more about our powerful email marketing automation features here or go ahead and get started right away by using Rare.io for FREE.

And if you’re one of the thousands of merchants who are already using Rare’s Smart Email Marketing software and want to see how our Customer Success Team can work with your brand to grow your revenue – feel free to book a call at your convenience here.

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