This week, The Wise Marketer included a segment from The Loyalty Guide 6 in its weekly newsletter that nicely sums-up why loyalty programs need gamification. With gamification increasingly on the minds of marketers looking to boost customer engagement and loyalty, we think it’s an insightful and timely piece.
Here are the five reasons cited:
1) Lack of adequate personal information on the member. To take an example, most loyalty programmes have meagre information like First Name/Last name and some level of address details. A few industries like airlines, telcos, hotels, e-tailers that manage substantial customer information including mobile numbers/email IDs etc. Organizations via gamification are offering points and other rewards to loyalty members to encourage them to give more information about themselves.
2) Customer attention and engagement is another factor that has profound implications on the efficacy of a loyalty programme. Gamifying the member portal also means introduction of polls and contests to the loyalty member. While the member gets points/other rewards for participating in these activities, the company gets vital & real information from the members.
3) Social media: ubiquity of social media has ensured that most members would be part of the most popular ones. The possibility of earning rewards can encourage members to ‘like’, ‘recommend’ specific promotions to their ‘friends’ thereby supporting viral-marketing of certain promotions.
4) Segmentation/fragmentation: More information about loyalty members would enable the organization to slice and dice members and create more deployable segments or better fragments. This will enable better targeting of members with more-apt promotions. Needless to say, member response would be better and promotion ROI would be higher.
5) Advocacy: Better engagement with members helps in converting them to brand advocates. The power of WOM (word of mouth) is well known.
Recently, Friendefi’s CEO, Aaron Carr, spoke to Gamification.co about using gamification to create fun and engaging ways for loyalty programs to educate their members about their many points earning opportunities. A new practice Aaron refers to as “edugagement”.