Category: CRM
How Gamification Drives Customer Engagement Perxtech gamification-jagriti-anim

How Gamification Drives Customer Engagement?

gamification-jagriti-anim

How Gamification Drives Customer Engagement

Jagriti Shreya

Business Strategy Lead | Sept 30, 2022


Gamification? Sounds familiar? Is it like that spin-the-wheel thing? Yeah, but there’s more. What if I told you that gamification is so much more than just that spin-the-wheel?

Before we jump into some interesting facts about gamification, let’s look at what gamification actually is and what it has to do with customer engagement?

What is Gamification?

To be put simply, gamification means applying game mechanics into non-game environments, say, for example, games you can play in your mobile banking app to win a reward, or games you can play in an LMS tool to learn new things or take a quiz. The possibilities are limitless and the market is quickly catching up to them.

Do you know the global gamification market is currently valued at 11.69 billion USD and is expected to grow at a compound annual growth rate of 12.9%? It’s getting bigger than ever.

So why is gamification so popular and is it really that effective a tool?

Yes. Gamification is designed on the canvas of human behavior. We all like to play and love to win. It brings a sense of achievement, challenge, and motivation.

How Gamification Drives Customer Engagement Perxtech gamification-motivators

What Gamification leverages human motivators to drive customer engagement.

There are two types of human motivators – Intrinsic which is the sense of autonomy, mastery, learning, love,and meaning, and Extrinsic which is money, badges, rewards, accolades, competition, fear of failure, etc. Gamification is the convergence of the two driving customer engagement, increased productivity and satisfaction.

How gamification leverages behavioural science to drive customer engagement?

So now that you know how gamification leverages behavioral science to drive customer engagement, let’s explore the many ways it does so.

New Customer Acquisition

Attract new customers through contests and rewards. Setting up rewards for user acquisition milestones is a great way to apply game mechanics, for example, first-time buyer rewards, etc. Or banks can use it to attract new customers through sweepstakes that require entrants to provide their name and email address in order to play.

How Gamification Drives Customer Engagement Perxtech customer-acquisition
Cross Sell/ Up Sell or Promote A Product

Gamification is an excellent augment to marketing tools. For example, a health and fitness center can launch a stamp card campaign to promote its new Nutrition and Diet Plan services. For example, log in 10K steps in the gym app every day for 7 days and collect 7 stamps to win a free diet plan or consultation.

Retain And Engage Customers

Loyalty feels dead because customers are actively disengaging with the brand. They get your emails but they don’t read them, why? A lot of times because it’s not personalized and also a lot of times because they don’t know what to do next with your loyalty program. Gamification is what should be the next best step. Game and reward-based campaigns help to keep your audience engaged and excited. This again goes back to your intrinsic and extrinsic motivators. It’s all about how well you can tap into their motivators.

How Gamification Drives Customer Engagement Perxtech gamification-engage
Drive Brand Awareness

When we win, we like to flaunt it, don’t we? The same holds true for our customer engagement. Gamification-powered campaigns mixed with social media shareability are your recipe for free branding. Let users share their accolades on social media, make game-based campaigns mobile and social media friendly, or just reward them for following your social media handles.

How Gamification Drives Customer Engagement perx-mobile-games
Conclusion

Gamification is the present and future of customer engagement and is rapidly creating its mark across industries be it banking, retail, healthcare, or education. The future of customer engagement will be driven by game theory and behavioral science. Today’s consumers expect more than just a vanilla earn & burn loyalty program. They want to be engaged, excited, and involved.

Perx uses mobile-first, next-generation game elements to maximize client engagement. Using engaging game mechanics like stamps, leaderboards, quests, quizzes, and more, you can create a range of dynamic loyalty programmes! Request a free demo from our solution expert today!

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Global businesses have driven over 5 billion customer-brand interactions on Perx.

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5 Ways to Use Gamification with Customer Relationship Management

5 Ways to Use Gamification with Customer Relationship Management

Grace Alexander

MarTech Blogger | June 6, 2022


Customer retention. New customer acquisition. Is the balancing act between these two aspects of business keeping you up at night? Figuring out the ideal amount to spend on each type of outreach is enough to give anyone a headache. Fortunately, modern technology and tactics can provide an answer.

Customer Acquisition vs. Retention: Which Side is Winning?

There’s an oft-cited statistic — coined by Bain & Co. fellow Fred Reicheld more than two decades ago and treated as a guiding principle ever since — that says a mere 5% retention increase could boost your profits by 25% or more. Add this to the fact that customer acquisition costs have recently risen approximately 60% over a period of five years and the answer seems clear: retention is the safe bet.

But where does that leave acquisition? It’s expensive and time-consuming to go for new business, but if your company cuts off funding for its efforts to attract new audiences, how will you grow?

Fortunately, there is an answer that serves both sides. A modern customer relationship management (CRM) approach, embracing gamification and data analytics, frees your company up to excel at customer acquisition while delivering powerful levels of retention.

Many companies fail to turn their CRM strategy into a retention tool or leverage it to help with customer acquisition. By building a functional and relevant program, you can differentiate yourself from these also-rans.

Up Your Game With a Newly Imagined, Dynamic CRM Approach

Improved CRM practices can take a few forms, all worth investigating. It’s important to note that making better use of customer relationship data isn’t an end unto itself. Rather, this is a way to target big, important business goals.

Retaining your customers at higher rates? That becomes easier when you’re making decisions based on data and analytics. Having more time, money and other resources free for acquisition? That’s what happens when your CRM approach is more focused and efficient.

As long as your business interacts with customers through a digital experience such as an app, you have data flowing in that can inform the future of your CRM strategy, as well as touchpoints where you can use tools such as gamification to please and engage your audience.

Consider the success of companies that have taken this approach with the Perx platform:

  • An 86% customer engagement rate.
  • 225% user growth.
  • Outreach campaigns that are 320 times faster to set up and execute.

These types of transformations are in reach for businesses that commit to not just holding customer data but applying it to everyday interactions.

Some of the general effects of a dynamic approach to customer data include:

  • An opportunity to identify and nurture the most valuable communication channels.
  • A streamlined path for acquiring, onboarding and delighting new customers with dynamic experiences and rewards.
  • Deeper connections with existing customers, created by reaching them at multiple touchpoints, online and offline.
  • A higher volume — and quality — of customer interactions, improving lifetime value and promoting brand advocacy.
  • Better personalization of rewards, driving instant gratification, social virality and long-term loyalty.

Better CRM strategy, with all its inherent advantages, is at the core of customer retention. Now, to collect and use the data that powers this concept, you need a practical way to stay engaged in your customers’ lives and lifestyles. That’s where gamification comes in.

Playing the Right Hand to Win Your Customers’ Hearts: 5 Gamification Tips

Better CRM practices let you understand your customers’ lifestyles. You can uncover their particular interests, their unique differentiators and their wants and needs. While this would be a challenge in the more opaque world of analog business, data makes it possible. Gamification gives you a quick and practical way to use the resulting insights.

Your interactions with customers can evolve. Rather than dealing with a business, merely carrying out transactions, they’re doing something fun and compelling that boosts their serotonin.

Rewards programs are the perfect place to create gamified experiences that fit seamlessly into your customers’ lifestyles. When using your brand’s app feels immediately rewarding, your customers are well on their way to becoming enthusiastic arand advocates.

Here are five ways to launch a gamified customer interaction strategy in which everyone wins:

  1. Focus on instant gratification: If customers have to wait too long to earn perks and bonuses they like, there’s a greater chance they’ll abandon your platform. Delight them right away with a user-friendly mobile experience and an introductory reward to get off to a strong start.
  2. Create a continuous, exciting cycle of rewards: Legacy rewards programs tend to show a lot of user downtime. Customers earn a few points, and then they wait before logging back in to spend them at some later date. Offering more frequent interactions is an easy way to keep your brand top of mind.
  3. Build the entire program around customer lifestyles: What do your customers do for fun? What do they value? What kinds of rewards and interactions excite them — and how do they share that excitement with friends and family? These are the questions that should guide interactions and reward design.
  4. Make rewards personalized and meaningful: The more you know about each individual customer, the more closely you can align brand rewards with their interests. This is why improved CRM strategies are an essential building block for gamified customer interactions that really move the needle on retention.
  5. Fully integrate gamified interactions: You don’t want to silo away your fun, engaging customer experience so only a small group of people can take advantage. Pushing this new data-driven interaction style to as many of your customers as possible creates a powerful loop of good experiences and rich data that fuels future personalization.

With such a strategy in place, your brand can hold onto your customers through consistently compelling experiences. Running these campaigns with a heavy dose of automation behind the scenes means they are more efficient and cost-effective than manual efforts and frees up resources for acquisition and other marketing strategies. Add this to the referrals and brand advocacy of your newly delighted customers, and it’s easy to see how retention and acquisition can exist side by side.

Want to know more? Read our case study to find out how Mambu and Perx used supercharged last-mile experiences to turn brand customers into superfans.

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Global businesses have driven over 5 billion customer-brand interactions on Perx.

Ready to join them?