What Is Gamification In Loyalty Programs & How To Use It Efficiently?

engamio What Is Gamification In Loyalty Programs

Acquiring new users can be 5x more costly than selling to your existing clientele. But repeat clients can often spend more than people buying from you for the first time. It has been found that nearly half of the revenue generated by an average store comes from just 8% of their loyal clients. Hence, having a customer loyalty program in place has claimed paramount importance for modern-day marketers. But in today's highly advanced digital age, brand competition has multiplied tenfold. People have an array of options to choose from when it comes to brands. So what can you do to make your rewards program unique and effective?

Gamification is an excellent strategy to include in your loyalty programs for encouraging repeat customers. Advanced analytical data, cloud services, social sharing and mobile responsiveness have enhanced the benefits offered by gamified activities. This technique has elevated business value throughout primary elements, including cost optimization, higher engagement and improvement in performance.

How to efficiently gamify loyalty programs?

Let's have a detailed look at some effective tips that you can follow to gamify your loyalty programs right -

Understand the needs of your clients

The use of loyalty programs is quite widespread among brands, however all of them manage to engage adequate customer participation. This is because they focus too much on monetary rewards rather than prioritizing the needs of clients. After all, the goal of a loyalty program is to get clients, keep them coming back and improve their lifetime value. To ensure that, personalization your gamified loyalty program according to customer needs, wants and preferences is vital. Personalized rewards can make existing users feel more valued.

Reward clients for unlocking higher loyalty tiers

Using tiers in loyalty programs is an effective gamification idea to implement for increasing sales. A tiered loyalty program rewards customers based on the rank achieved by them. You can create milestones based upon their annual spendings or number of purchases made. Gamification helps make the challenges addictive by leveraging the innate competitive nature of humans through attractive leaderboards and scoring system. The visual indicators let participants monitor their progress and track their status to understand how many more points are required to unlock the next tier.

Engage with meaningful content and stories

Making use of gamification for engaging customers offers plenty of benefits. But it is important to utilize the technique in an interactive and exciting way. In order to drive repeat customers, you must deliver a sense of accomplishment to the existing ones. For instance, you can create multiple actions for every challenge according to your business objectives. After finishing the challenges, you can also provide your clients with incentives to share their results on social media, thereby becoming advocates of your brand.


Nearly 54% of participants in any loyalty program remain inactive. Ignoring this fact can lead to substantial losses in terms of potential to build meaningful relationships, retain customers and earn greater profits. As brands keep evolving, they are constantly on the lookout for helpful technologies. Gamification is a highly engaging tool that can greatly customer engagement for your brand, thereby driving loyalty and retention.

To learn more about gamification strategies and integration of gamified challenges & contests, get in touch with us at info@engamio.com.