Did you know that while 79% of consumers agree loyalty programs make them more likely to continue doing business with brands, only 44% of program members are very satisfied with their experience? This is according to the 2019 Bond Brand Loyalty Report.
Why the disconnect? We’ve been playing the wrong game.
Traditional loyalty programs often rely on simple point systems and basic rewards, along with some simple gamification elements like badges and leaderboards. But as both a CX/Loyalty professional and an avid gamer, I know that we’re missing out on the rich tapestry of motivations that keep gamers coming back for more.
Let’s explore how we can apply some core gaming principles to change up customer loyalty and give customers an enhanced loyalty experience:
- Ease of Use: In games, intuitive interfaces keep players engaged. Similarly, an Ebbo study found that 42% of customers find loyalty programs require too much effort and are time-consuming. Simplify the experience to keep customers in the game.
- Mystery and Curiosity: Just as unexpected loot drops excite gamers, surprise rewards can delight customers. The 2021 Premium Loyalty Data Study by Clarus Commerce showed that surprise rewards are one of the top 5 benefits that motivate consumers to invest in a premium loyalty program.
- Fear of Missing Out (FOMO): Limited-time events in games drive engagement. The same principle applies to loyalty programs. A study by Kerry found that 64% of consumers bought limited-time offers on occasions when they might not have otherwise bought anything.
Innovative loyalty isn’t about accumulating points with a meaningless badge or leaderboard, it’s about creating experiences that customers genuinely want to engage with, just like their favourite games. By taking the real core elements that drive motivation behind video games and applying them to loyalty programs in meaningful ways, we can enhance their program experience and deepen their connection to our brand.