Gamification as a Business Strategy
Gamification has become a helpful tool in businesses to entertain their users and customers. This strategic implementation of points-winning activities inspires target audiences to remain engaged with a brand for extended periods. It also provides an alternative means of data collection so that a business does not have to rely on third parties.
An example of simple gamification on a website is rewarding customers with a gift card for tasks such as inviting friends to the platform. It’s an effective strategy to boost brand recognition because it taps into people’s innate desire to win.
Reasons to have gamification
Two main reasons to apply gamification techniques are the ability to gain zero-party and first-party data. Zero-party data is what customers share freely with your business, and first-party data is what you collect from their activity. These allow your brand to offer customers a more personalized experience, which can increase sales and conversion, and with gamification, you can collect this cost effectively!
Gamification allows you to re-engage pre-existing customers. For example, customers will be more willing to share data about their birthdays if they will be rewarded with discounts on their special day. This is one of the ways to personalize an experience for them.
How to implement gamification
A business wanting to implement gamification can start simply by doing any of the following:
- Having a loyalty program: You can introduce a loyalty program to make buyer retention and referral fun. Many fintech companies like Revolut always advertise an attractive fee for inviting friends and family to join the app with a user’s code.
- Hosting a giveaway: Giveaways spark the competitive side of customers. Although, unlike the traditional competition, they are not based on ability but on pure luck, which adds to the thrill. One could argue that winning a giveaway from a beloved brand is akin to winning a small lottery.
- Starting a leaderboard: Leaderboards are for showing off the most loyal customers. People are always proud to be recognized as being in the top percentile for anything. This means they are likelier to continue the activity that keeps them at the top.
There are simple ways for your business to apply gamification, like having a loyalty program. In addition, the activities performed by customers are a cost-effective way to collect zero-party and first-party data.