Gamification as a new customer retention formula

Gamification as a new customer retention formula
  • Viernes, 15 de diciembre de 2023
  • Business

Gamification is a term that has gained momentum in the last couple of years. It is basically the integration of game elements into products, sales and services to improve customer integration. Applied to marketing, it is growing in popularity as a very efficient way to provide memorable experiences for the consumer.

The use of game mechanics, action structures, plus behavioral elements that are not actually related to games is applied. This formula seeks to take advantage of human beings with their need to compete and obtain rewards that reward their efforts. Games produce a positive emotion, associated with achieving objectives, that is where you should rely on.

Examples where the new formula is applied

It is important to be clear about what can be considered gamified actions and what cannot. Although, it's not that complicated, really anything with elements of fun or competition falls into these strategies. These are the most common examples that you didn't notice before in marketing.

  • When you receive badges, avatars or any virtual reward for your effort.

  • Do your best to get a good rating or review. 

A great example is the BBVA bank, which developed a gamified program to encourage the use of its online services. In this, users accept challenges on the bank's website to earn points and obtain prizes. The National Road Safety Agency in Stockholm and Volkswagen designed a radar system, gave rewards to those who maintained the speed limits and included them in a lottery.

How is gamification done?

In order to make your gamified strategies work, there must be four basic elements, which every game has. The first thing is a challenge, there has to be a goal that is a challenge so that clients feel like achieving it. Then the election would come, alternatives must be shown in order to achieve the challenge.

Change, this is important in gamification, because the user must grow with the game. Because if you face the same challenge continuously without any transition, people will just get bored. And finally we have the reward, the most important aspect, which does not necessarily require spending money. To tell the truth, games are addictive because of the effect they have on releasing dopamine in the brain.

Customer loyalty programs

Sending thank you emails or messages is no longer enough in this current technological world. It's a matter of tapping into customer loyalty drivers with a rewards program. 74% of buyers believe that insisting on achieving a challenge or reward makes them loyal to the company. And 79% have doubts about whether this loyalty will bring them any benefits.

Loyalty programs have advantages such as no longer having to compete on prices. Customer retention improves, avoiding having to get new ones, which is more work. One of the best benefits is the personal ties or relationships that are built, humanizing the brand. And, of course, you attract advocates for your service or product, who will advertise for you for free.

Referral or recommendation programs

Referral programs are an ideal perspective for your customers to be spokespersons for your brand. Promoting a pattern of behavior caused in response to a reward, when the behavior is taught is known as positive reinforcement. Referral programs within gamification take advantage of this as a motivator for participants.

In fact, continuous reinforcement programs with loyalty rewards become the ideal positive reinforcement strategy to change behavior. Instead of getting rewards every so often, the client is rewarded every time he does a certain action in this scenario.

Efficient alternative taken from the games

In recent years, treasure hunts have become the most popular way to promote companies. They are an immersive experience, that is, an environment created to provide stimuli. Especially when you do a mix of online and offline activities. Those who participate will solve puzzles that reveal your story, achieving an exciting hunt that tells them about the business.

What do you learn by gamifying?

One of the lessons of this strategy is about entertainment, an essential element of the game to give the user fun. If it is achieved, the rest of the objectives such as selling or building loyalty will come on their own. We will mention other learnings so that you decide to apply this successful formula.

Personalization of dynamics

Since segmentation demarcates groups with the same characteristics, personalization is aimed at the individual customer. Creating experiences that have value for each of them, can occur both in the present and in the future, applying prediction. It is important to adapt to the niche to determine the type of game, the dynamics and the level of complexity.

So you have to take into account the levels of loyalty and brand awareness. New clients should be shown easy challenges, but ones that are intended to generate excitement in the short term. It is done to capture their attention, making a great first impression that catches them. Recurrants are then provided with a sense of achievement, inversely proportional to the difficulty.

Don't get so involved because you'll get lost

You should avoid requiring additional tutorials or explanations and only need one marker for your scores. This simplicity, therefore, has to be balanced with the degree of challenge, so that clients want to keep meeting goals.

Quantification of efficiency or error

You should never forget to monitor, in order to check if a good return is achieved or if the strategy has details that need to be modified. The positive thing is that there are already analytics tools that provide statistics on customer engagement. These measure the time spent in the game, the achievements obtained, the return rate, among others that determine its potential.

Get into the game of success

Now you know that you can offer your customers referral discounts or perhaps give them redeemable points for each of their purchases. Gamification has become a fun way to reward loyalty and you don't have to fear because it is already proven as a successful strategy. What are you waiting for to apply it to your business?

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