Category: Customer Engagement

Financial Brand Loyalty Marketing: It’s All About Gratification

Financial brand loyalty marketing: It’s all about gratification

Instant. Constant. Consistent. Paving the way for true top-line growth

Grace Alexander

MarTech Blogger | May 4, 2022


Loyalty marketing for financial brands can be a tricky thing. Banks are inherently distrusted by one set of consumers, typically younger generations who view them as self-serving and unsupportive of their goals. In contrast, fintechs are given the side-eye by older generations who value longevity and a track record over digitized, mobile-first interactions.

Both sets of consumers want a financial brand experience driven by transparency and a clear motive to gratify their needs and wants. Whether they are traditional banking institutions or budding fintechs just getting a foothold, brands that achieve this will be able to drive top-line growth and lasting, active, and engaged brand loyalty.

Properly done, financial brand loyalty marketing boosts earnings, increases sales, and enables long-term expansion. A well-planned and implemented loyalty and rewards program can assist you in retaining existing customers, attracting new customers, and growing revenues. This happens through last-mile engagements, which can rise by 12 times with a modern and tech-driven program.

Brand Stickiness vs. Brand Loyalty

Any brand that caters effectively to the needs of its customers enjoys some level of free customer stickiness and retention because switching brands — especially financial brands — can be a hassle.

However, most brands take this free element and don’t build on it to lasting advantage. For example, banks have incredibly high customer stickiness, but very few implement effective customer engagement marketing to transform that stickiness into true brand loyalty.

On the other hand, fintechs may be knocking it out of the park when it comes to customer engagement, but haven’t sufficiently aligned their messaging and brand loyalty marketing to lock in their more fickle customers and make them truly stick in the face of an ever-expanding market of options.

Instant Gratification in Your Bank Loyalty Program

Today’s banking customer expects and demands instant gratification at each touchpoint. You can leverage these opportunities by providing instant gratification, so that interacting with your financial brand becomes a normalized part of your customer’s lifestyle.

The rewards offered at these interactions should be flexible to provide customer choice and match each consumer with a personalized bonus. In addition, these instant rewards should be visible to other members of the person’s social circle, keeping the brand top of mind and providing a positive incentive to come back and earn more.

Account opening

Customers want instant access to benefits, from a ready-to-use ATM, debit, or credit card to loan application and line of credit options.

  • Potential reward: An instant large reward (a one-time reward for each account opened, the scale of which may vary based on the opening deposit amount.)
Account balance checks

Customers expect instant information without jumping through hoops to access their accounts and repeatedly prove who they are.

  • Potential reward: A token or bonus reward if over a certain balance (a recurring reward, given every day checked, the amount may vary based on target balance tiers.)
Account transactions

Customers desire the ability to complete a deposit, transfer, or bill payment instantly and receive real-time confirmations and notifications.

  • Potential reward: An instant reward given when a predetermined milestone is hit (a recurring reward, given every time a new milestone is achieved, the amount may vary based on milestone type and size.)
Set up direct deposit

Customers want to take advantage of time-saving benefits and receive their reward (typically a discount on bank fees or a cash bonus) right away without waiting for 30, 90 or 120 days.

  • Potential reward: An instant reward is given when a new direct deposit is set up (a one-time reward for each direct deposit, the size of which may vary based on the average deposit amount.)
Check or cash deposits

Customers demand instant availability of funds without waiting for them to clear. This includes funds from regularly scheduled, automated deposits that fall on weekends or holidays.

  • Potential reward: A token or bonus reward every time a deposit over a certain amount is made (a recurring reward, the amount may vary based on the amount of the deposit)
Referrals

Customers want immediate rewards for “helping their brand out” by referring other people who become customers as part of a customer loyalty scheme.

  • Potential reward: A large instant reward (a one-time reward for each successful referral, the amount may vary based on the type of account opened or amount of initial deposit.)

These interactions provide the ability to add touchpoints to an ongoing customer journey and provide instant gratification as part of a customer rewards and brand loyalty program.

Constant Gratification in Brand Loyalty Marketing

Don’t drop the ball. You have your customers’ attention, and the way to keep it is through constant, consistent reiteration.

The customer journey is ongoing

You can’t depend on “set and forget” vanity programs that simply count shares and likes. Every time you have the chance to reach out to a customer, whether it’s to congratulate them on hitting a new milestone or encouraging them to complete a journey leg, you need to take it.

The customer journey is unique.

Personalized experiences require constant monitoring, tracking and check-ins to drive additional opportunities for engagement, and data analysis to ensure you are providing ultimate rewards customers actually want to collect.

The customer experience should be fun!

Add gamification for an even more engaged customer base. You don’t have to build everything in-house to develop customer experience ecosystems with which your customers will love to interact.

Consistent Gratification in Customer Engagement Marketing

Banking customers are discerning and aware. Customer loyalty systems and rewards programs that aren’t consistent will soon be dismissed. It’s a big mistake to offer a 100-point incentive for an action one time, then offer half the incentive a few months later. Be consistent, and constantly improve and expand.

How Perx Drives Bank and Fintech Brand Loyalty Marketing Via Experiences

The Perx Loyalty and Engagement Platform (LMP) transforms how banks and fintechs engage with their customers, and helps you instantly, constantly and consistently provide gratification through personalized experiences and rewards.

With this platform, you can maintain customer engagement marketing as you scale, bringing in new business and retaining high-value customers while driving revenue-generating actions. It allows you to:

  • Prevent waste associated with legacy brand-building and marketing.
  • Make the customer journey frictionless, instantly gratifying and socially viral.
  • Provide rewarding experiences that drive real revenue and keep brands top of mind.
  • Create a seamless and gratifying online to offline customer experience.
  • Automate processes so loyalty processes can evolve with minimum time and labor.
  • Design programs that allow legacy organizations to compete with mobile-first and digital-first financial brands.

Your financial customers are waiting to be wowed by your commitment. Are you ready to take your brand loyalty marketing to the next level? Ask for our free demo today.

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Does Your Customer Loyalty Program Need Resuscitation

Does your customer loyalty program need resuscitation?

How to keep your brand loyalty initiative from gasping its last breath

Grace Alexander

MarTech Blogger | April 26, 2022


Brand loyalty may not be dead, but it’s barely clinging to life. Maintaining customer retention and growth is ultimately down to how well your brand manages hygiene when it comes to customer engagement. Being able to engineer the customer journey with seamless transitions from touchpoint to touchpoint combined with meaningful rewards and continual opportunities for further engagement is key.

Traditional loyalty programs are where customer relationships go to die

Many traditional customer loyalty programs in use today are glorified ledgers. They:

Serve as not much more than a records keeper

Customers have advanced beyond being satisfied with mere point-tracking systems. Adding points as they are earned and deducting them as they are spent or redeemed is like logging blood pressure without doing anything about whether it’s low or high.

Aren’t clear about the worth of points to the customer

Lack of transparency about how much points are worth and what they can be spent on or redeemed for is comparable to giving a patient in crisis instructions for care in Latin — it’s unhelpful, to say the least.

Bury rewards and benefits so they aren’t easily accessible

Programs that keep information about rewards and benefits hidden away in an obscure page on their website can be almost pointless. That’s like prescribing medicine but hiding the bottle.

Don’t drive constant customer engagement

Not focusing on constant, continual customer engagement is as helpful as telling a patient to eat light during annual festivities but not bothering to remind them to take their daily medication.

Don’t nudge or track customer actions aside from when a point is earned or spent

Customer loyalty programs that only become active when the customer initiates contact and then goes dead again are similar to a pacemaker that doesn’t kick in until someone turns blue.

Don’t provide additional ways to incentivize the customer

Suppose your loyalty program isn’t coming up with new ways to get your customer motivated about interacting. In that case, you may as well call the time and sign the certificate because the slow death of your relationship has arrived.

Don’t build additional loyalty

Customer loyalty is like a barometer of health. If you aren’t doing regular checkups and making it easy for them to see you on-demand, you might find their loyalty DOA.

Deliver poor results and poor ROI

Not tracking metrics and analyzing the results of your customer loyalty program compares to sending off their samples to the lab and never bothering to follow up. Who wants to wait around forever? By the time you check back, your customers will be gone, gone, gone.

Modern loyalty programs breathe new life into customer interactions

When appropriately designed and implemented well, customer loyalty programs can become the primary driver of your customer engagement, growth, and retention initiatives. A great customer loyalty program will:

Build a tribe of loyal customers

The constant attention and care you show will create a strong relationship between you and your customers — and they’ll reciprocate with word-of-mouth accolades, resulting in holistic referral marketing.

Continually set customers up for yet another touchpoint

When you do repeated follow-ups that provide gratification and brand value realization, customers become more likely than ever to be receptive to your recommendations and advice. It’s almost like going to a doctor that treats you like a family member.

Build highly active customer journeys

Making your customer’s journey feel more like one long-lasting interaction instead of isolated events is how you become a necessary part of their everyday lives. So make sure you’re delivering an ongoing experience studded with actions and rewards to engage them further and keep the brand/customer relationship in good health.

Present personalized experiences

A patient who realizes that their doctor never learns their name quickly finds a new provider. Making sure your customer loyalty program makes every member feel special with tailored experiences and customized rewards will encourage them to make and keep regular appointments with your brand.

Clearly present the “why” of belonging to your program

The customer only turns to an “urgent care” version of a loyalty program when they hope to get some fast help. That initial reward for signing up can be a much-needed shot in the arm, but don’t forget to hand out the brochures that explain your point worth, benefits, and rewards to drive repeated customer actions.

Engage customers on a level that impacts their lifestyle

Patients who aren’t invested in their health tend to eat better and walk around the block for a few days after a doctor visit, then give up. You need a program that sets a reminder to keep walking daily, suggests healthy recipes, and offers a free meditation suggestion they can access at bedtime every night.

Perx transforms customer loyalty programs into lifestyle augmenting tools

Are your customer relationships clutching their chests and gasping for air? You need help, stat. Don’t sit by and monitor the situation while it bleeds out on the floor. Instead, take steps to proactively address the bond between brand and customer and extend its lifespan for years to come.

The Perx Loyalty and Engagement Platform (LMP) changes how your customer loyalty program impacts customers. With Perx Platform, You can:

  • Power customer interactions with constant opportunities.
  • Increase customer retention by providing an ongoing journey.
  • Enhance customer engagement by tracking customers and leveraging extra opportunities.
  • Improve customer loyalty with highly personalized experiences.
  • Maximize referral marketing opportunities by turning customers into brand ambassadors.
  • Reduce your customer acquisition cost and maximize lifetime value (LTV).

It’s time to invest in a customer loyalty program with endless potential for personalization and the capability to develop endless customer journeys packed with actions, rewards and enjoyment. Perx helps you turn your brand loyalty system into lifestyle augmentation tools that keep customers active, engaged, and constantly watching for the next opportunity to play, win, save or be surprised with your next communication or offering.

Are you ready to do more than put a bandaid on your customer relationships? Request a free demo today.

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

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Drive MAU Through Aha! Moments With Gamified Customer Touchpoints

Drive MAU Through Aha! Moments With Gamified Customer Touchpoints

Drive MAU through Aha! Moments with gamified customer touchpoints

Grace Alexander

MarTech Blogger | November 23, 2021


Building a strong MAU base is crucial to growing your brand. Your MAUs (Monthly Active User) are your most interactive customers, but if you are not providing them with continuing opportunities to engage, you could be missing chances to convert.

By creating a road map that anticipates and proactively encourages customer behaviors, brands can continually prompt engagement and keep the customer journey active, leading to more and repeated conversions.

What is Your MAU Ratio?

The effective reach of your brand is determined by the number of active users measured over time. Your daily active user (DAU) number counts how many unique users were active in the span of a single day.

Your monthly active user (MAU) number measures how many unique users were active at least one time within the one-month window.

The relationship between these two numbers — DAU divided by MAU — provides the MAU ratio. The higher the percentage, the more people your brand is reaching consistently (stickiness). A 20% ratio is an acceptable range for many industries. A brand like Facebook has a (self-reported) MAU ratio of 50%.

Each wow moment provides an opportunity to encourage a customer to perform a trigger event.

Monthly active users are important because they are consumers you can reach through lifestyle marketing. Think about Facebook. How many users get up, check Facebook, and maybe play a round or two of a game on the platform before work? Facebook has become part of their lifestyle.

From Wow to Aha! and Beyond

Customer journeys consist of multiple touchpoints. When a customer’s journey ends, so does their engagement with the brand. Brands must then work to restart a customer journey or create a new one.

By creating a road map that anticipates and proactively encourages customer behaviors, brands can continually prompt engagement and keep the customer journey active, leading to more and repeated conversions.

Gamification delivers instant gratification through hyper-personalized rewards through customized engagement mechanics that drive the customer journey from one micro-experience to the next.

Each touchpoint provides an opportunity for customer engagement and a wow moment. So, what is a “wow” moment? It is when you offer a pleasant surprise for your user and exceed their expectations, even in a small way.

In gamification, this can mean giving them a free powerup for the next game round or extra points just for logging in. For a bank, you might provide a stamp every time your user checks their balance. For a retailer, you could award points when they click to view the day’s deals.

Every Aha! moment reinforces your value to the customer and encourages them to keep engaging with your brand, performing actions that directly correspond to increased revenues.

Each wow moment provides an opportunity to encourage a customer to perform a trigger event. Maybe it’s just playing another game round. Perhaps it’s clicking to compare rates for their insurance coverage. It could even be agreeing to take a short, two-question survey that provides your business with beneficial data on consumer wants, needs, or behaviors.

Every trigger event provides the opportunity to wow the customer again. When they complete the desired action, they receive another reward or incentive. This could be a special offer, extra points that can be banked toward a tangible reward, or a discount code. Every action they perform and every reward they receive helps to establish the lifestyle ecosystem you are building.

When the customer is wowed repeatedly, they can experience an Aha! moment. This “Aha!” moment is when the customer realizes and understands the value of your product/service, and becomes both more loyal to your brand (and more likely to share it with or recommend it to others).

When nurturing customers through multiple micro-experiences leads to Aha! moments, brands never miss a chance to interact with customers and drive revenue-connected actions. Every Aha! moment reinforces your value to the customer and encourages them to keep engaging with your brand, performing actions that directly correspond to increased revenues.

CX + UX = Success

Customer experience (CX) is the journey, touchpoints, and milestones your customers progress through via engagement with your brand. User experience (UX) is how easy the environment your users interact within makes completing various actions.

Perx ties the two together, making every customer interaction with your brand easy, fun, and part of a larger plan to drive revenue. Gamification delivers instant gratification through hyper-personalized rewards through customized engagement mechanics that drive the customer journey from one micro-experience to the next.

By streamlining and aligning both CX and UX, you create a continual customer journey user experience that can do all of the following:

  • Acquire new customers, whether through referral or introductions to your gamification experience through a business app or an ad.
  • Activate these customers by incentivizing them to perform their first action, giving you the opportunity to wow them.
  • Retain your new customers by keeping them engaged with continued incentivized touchpoints and wow moments.
  • Drive revenues when your customer reaches an Aha! moment after continued rewards tied to desired behaviors.
  • Attract new customers thanks to the referrals your existing customers generate for your brand.

Gamifying each touchpoint on the customer journey allows you to keep customers engaged. When you track your customers and analyze their behaviors, you can identify important milestones at which your customer is ripe for a nudge.

Using push notifications via SMS or email when a customer has nearly achieved a milestone gives you the ideal opportunity to incentivize the desired action.

For example, an active customer with 8 stamps out of 10 can be provided with an opportunity to perform an action that wins them two stamps instead of just one, allowing you to wow the customer by boosting them to reach their goal, and guide them toward an Aha! Moment.

By unearthing deeper insights into customer behavior and creating additional customer-brand touchpoints, you can stay top-of-mind as you build your brand’s tribe and gamify critical journey milestones to increase campaign completion and engagement rates.

The cycle of action and reward can be repeated over and over. The customer becomes accustomed to participating in your gamification as part of the lifestyle environment. Continued interaction and revenue-driving actions increase their lifetime value (LTV) to your brand, and prepare them to be brand ambassadors, ready to act as an organic recruitment arm.

Perx Bridges the Gap One Micro Experience at a Time

Most rewards, loyalty and incentive programs are transient, meaning they do not have a strategy to maintain continuous engagement with the customer. They are also highly transactional, lacking a meaningful connection to the customer.

Your company needs to shift from these transient and transactional engagements to continuous and meaningful engagements. Making that change requires the ability to streamline the customer journey user experience and make each engagement personalized for the individual.

Perx makes it possible to string multi-action engagements into a seamless customer journey, combining specific customer actions with collaborative or competitive challenges to increase stickiness. As a result, each micro experience is a potential wow or Aha! moment.

By unearthing deeper insights into customer behavior and creating additional customer-brand touchpoints, you can stay top-of-mind as you build your brand’s tribe and gamify critical journey milestones to increase campaign completion and engagement rates.

The proof of what Perx can do to unify your customer experience strategy is undeniable. See what we have already done for our partners:

  • Leading telco: enjoyed 50% customer acquisition in 8 months and increased net new revenues by 100%.
  • Popular retail company: drove transactions worth $34M in the first 60 days after launching the campaign and acquired 225% unique customers.
  • Mobile-first bank: reached a 99.8 last-mile redemption rate, with 601K users engaged and 2.5M rewards redeemed.

Want your business to be predictably successful? Watch this short video of how Perx uses gamification to drive MAU and schedule a demo.

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The Right Customer Engagement Trick? Treat Them Right!

The right customer engagement trick? Treat them right!

Despite the fact that the campaign was launched a decade ago, it continues to haunt me.

Sundeep Keramalu
Director, Marketing Content | November 01, 2021

Was Coke crazy to put random people names on its ‘#ShareACoke’ campaign? Yes. No. No. Yes. Yes, when one considers the campaign’s general desperation. No, when you consider how it made people feel. And no, when you consider the campaign’s stated purpose. And yes, when you consider how Coke was catapulting addiction to new heights.

While Coke’s amazing taste is refreshing, we must keep in mind that even the great ice age reached a point where it was no longer cool.

Share A Coke was no doubt a sweet campaign. That is, having your name appear on a billion-dollar brand. How frequently do you see that? What bothers me is that Coca-Cola is a well-known brand. It has its own name. It has taken decades and hundreds of millions of dollars to get to this point. And suddenly, it was willing to gamble with its identity by putting random, unknown names on its bottles to boost sales for one summer in Australia? It is self-evident that Coke has the absolute right to do anything it wants with its bottles. But, if you know that your product is not exactly health-beneficial and has addictive elements, you want to enable your customer to be disabled from being addicted — not the other way around.

Brands cannot capitalize on the unconditional condition unless they are willing to allow their customers to explore the condition of conditionality.

The goal of any brand is to make the customer fall in love with it unconditionally. Unfortunately, brands cannot capitalize on the unconditional condition unless they are willing to allow their customers to explore the condition of conditionality.

Simply put, to receive anything, you must first offer something. While Coke’s amazing taste is refreshing, we must keep in mind that even the great ice age reached a point where it was no longer cool.

The ethical question remains whether a brand can go as far as to entice consumers to purchase a product simply because it bears their name.

To keep consumers’ hearts warm for the brand, even a “cool” brand must step up and do something genuinely cool that also ends up being a warm gesture for the brand. Coke’s “nice” gesture was to put people’s names on its bottles. Of course, Coke, like any other marketing campaign, had its own agenda. Putting random people’s names on its bottles would be akin to a jilted Bollywood lover in one of those 90s movies engraving the name of the lady in his blood — since she does not feel the same way about him or, worse, has no idea who he is to begin with! Coca-Cola did not want a one-sided relationship. During the summer of 2011, it sought to increase sales in Australia.

Influential personalities and multimillion-dollar deceptive marketing messages are damaging to one’s willpower when it comes to resisting unhealthy and harmful lifestyle choices.

As much as people enjoyed seeing their or their loved ones’ names on Coke bottles, the question we must ask is if it was the proper experience. True, the ethical question remains whether a brand can go as far as to entice consumers to purchase a product simply because it bears their name. However, when a brand is aware that its product is bad enough to be a good pesticide, I believe it should refrain from influencing people in this way — from persuading them to share something this bad.

As it is, influential personalities and multimillion-dollar deceptive marketing messages are damaging to one’s willpower when it comes to resisting unhealthy and harmful lifestyle choices. In any event, when compared to Kendall Jenner’s ‘Live for Now’ Pepsi fiasco, Coke’s ‘Share a Coke’ campaign was more thoughtful and positive.

When you are a brand that is bad for the body and bad for the mind, you cannot give people any more reasons to buy it than they need. There is a very thin line to walk. This means that you should not compel your customers to adopt your brand. Rather than that, develop incentives for people to adore your brand. There is a significant difference, but the line is really thin. I am not being a snob and slamming the idea of sharing a Coke with a close friend. It is just that you would not want to share anything harmful to your health with someone you care about. That contradicts the point of the campaign’s purported goodness.

Brands that make essentially harmful products to one’s health have additional avenues for customer engagement. Coke tricked its customers into purchasing more Coke. And, mind you, this was done in the name of “treating” its customers. Did not expect this from you, Coke!

Even for a beauty brand that wants to reward its customers, it cannot be skin-deep in its approach to rewarding them.

As much as we would like to believe that the #ShareACoke campaign was an engaging sales-increasing, brand-building, emotionally-engaging campaign, the reality is that it was not as engaging as it could have been. So, the deal was that Coke gave a platform for people to share a virtual Coke with pals or, if they were lucky, find a bottle of Coke with their or their friend’s name on it.

All of this, you see, is still quite transactional. In the end, it is just a name on a bottle! That is all there is to it. When the campaign ended, the transaction concluded. When you invest millions of dollars in advertising a campaign, you spend far more to market and nurture the campaign so that people remember it.

While beauty is in the eye of the beholder, the beauty of a reward is in the embrace of a participant.

Rewards cannot be superficial. Let me give you a perspective. Beauty is considered superficial, right? But even for a global cosmetics brand that wants to reward its customers, it cannot be skin-deep in its approach.

How did a global cosmetics giant under Louis Vuitton increase its in-store sales with the Perx Platform? They did not go around handing out random rewards or sample cosmetics to the passing crowd. Instead, they incentivized regular in-mall footfall to visit their stores

It was a simple and straightforward approach. With smartphones being the single common denominator across shoppers in developed countries, QR-coded posters were placed throughout a highly popular mall. Customers were rewarded every time they scanned the QR code. However, to receive the reward, they had to enter the store — the point of sale.

The dynamic campaigns connected offline footfall, incentivizing them to walk into the store, where purchases were built and launched using the Perx platform. In addition, Perx’s advanced gamification and engagement mechanics transformed the whole experience into a gamified and instantly gratifying one.

Before launch, the brand researched customer footfall and buying patterns before designing the experience around them. They wanted to reward them for their intention to buy something from the brand. Even if they did not intend to do so, the dynamic mobile engagements influenced them to engage with the brand. In other words, I am attempting to convey that, in light of the example, the reward offered should not be based merely on the customer’s pleasure; rather, it should be based on the customer’s intent.

It is true. Beauty is in the eye of the beholder. Therefore, Coke’s #ShareACoke campaign might have made the day for some of its customers. But at the end of the day, we must remember, while beauty is in the eye of the beholder, the beauty of a reward is in the embrace of a participant.

A disconnect or a pause between you, the brand, and your customer will cause them to seek another brand that meets their requirements.

While each beginning and each campaign should have a conclusion, the reality is that engaging customers is a continuous process. Brands are required to engage in a never-ending cycle of evolution, progress, and improvisation. A disconnect or a pause between you, the brand, and your customer will cause them to seek another brand that meets their requirements. This is why brands must focus on engaging their customers in ways that transcend beyond transactional interactions — something that keeps the connection going for a long, long, long time — how about forever!

Treat the relationship with your customer as though it were a long and happy marriage and not a one-night stand.

Treat the relationship with your customer as though it were a long and happy marriage and not a one-night stand.

Given that you have read this far, we are here to assist you if you are looking for a superpower to build that long-lasting, deeply-engaging relationship with your customers. Now keep in mind that we do not help you treat your customers just for the heck of it. Instead, we assist you in treating them genuinely and sensibly – you know, for the right reasons!

We work on making sure your customers do not just remain customers, instead we turn them into level-headed superfans.

It all boils down to giving you the satisfaction of knowing that you as a brand did not trick your customers and that you treated them appropriately. And understanding that will help prevent your conscience from being haunted.

Here is to a #CleanConscience!

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How the World’s Most Popular Game Failed to Put a Smile on its Players’ Faces

make your customer smile

How the world’s most popular game failed to put a smile on its players’ faces

Sundeep Keramalu
Director, Marketing Content | October 01, 2021


The primary lockdowns in 2020 were hard for all of us. Numerous brands reinvented themselves and achieved extraordinary success. And some became extinct in a matter of days during this time. Then some outliers created solutions and products to capitalize on the possibilities and dominate the market in response to disruptions in consumers’ lifestyles.

What is the point of being tall if you are not going to make the people who made you tall sit on your shoulders and feel elevated?

Genshin Impact (GI), an action role-playing, free-to-play (F2P) game, having only launched in September 2020, profoundly affected the whole gaming industry. For a world that had been shut down, an open-world game appeared to be a faraway universe’s answer to a desperate cry from the heart.

GI became the only game in history to earn a billion dollars in just six months. The gamers were crazy about the game, and the game developers made sure their game was incredibly good to keep the players from getting enough of the game.

Each time it released a new character pack, the most obsessed players generated a cool $12 million (in a single day) in revenue for GI.

Everything in the GI universe was going fantastic, until GI decided to celebrate its first anniversary, at which point things became real… and ugly!

When brands re-energize their customer engagement strategy and loyalty initiatives by aligning them with the everyday life choices of their consumers, they increase retention and create superfans.

Fans of the game expected great prizes for their dedication on the game’s first anniversary. Instead, GI offered only a quarter of a gacha doll’s price. What is the point of being tall if you are not going to make the people who made you tall sit on your shoulders and feel elevated?

When players started complaining about the measly rewards from GI on the official forum, the game’s publisher deleted the complaints. This led to the players expressing their frustrations on the app’s review section on the Google Play store, plunging Genshin Impact’s score from 4.5 to a meagre 2.8.

If GI could have duly, appropriately, and timely rewarded its players, it might have deepened its emotional ties with them.

It is a terrible irony that a gaming company that excels in enticing players to purchase fantastical accessories and levels fails to amaze where it counts most – ensuring that hooked users stay hooked through meaningful engagement strategies.

Steps that could have kept GI on its exponential trajectory

If GI had implemented tailored rewards for its estimated three million users through gamification, it would have had happier players and not disappointed fans on its anniversary.

GI failed to go the extra mile. It was the occasion to make its players happy by circumventing the rules, adding extras, or offering contextual rewards for their in-game actions. If GI could have duly, appropriately, and timely rewarded its players, it might have deepened its emotional ties with them, transforming happy users to a loyal tribe.

Maintaining a transient and transactional relationship with customers is no longer sufficient. GI is no doubt an awesome game. However, did it perform admirably when it mattered? Not at all.

A brand is only ever truly happy when its customers are genuinely happy.

Never too late to course-correct your engagement strategy

Brands must go above and beyond to maintain meaningful engagement with customers, from the first to last touchpoint. This can happen through hyper-personalization, dynamic engagement mechanics, advanced gamification and focusing on data-in-motion rather than data-at-rest. When brands re-energize their customer engagement strategy and loyalty initiatives by aligning them with the everyday life choices of their consumers, they increase retention and create superfans.

Not only does that make customers happy, but it also makes the brand happy. And we all know, a brand is only ever truly happy when its customers are genuinely happy.

Perx Loyalty and Engagement Platform has helped brands transform their customer engagement strategies and actively contributed to their topline growth by increasing customer engagement by up to 12x. Connect with us to learn how you can influence and drive customer actions in the instant gratification, mobile-first economy.

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Is Loyalty dead, or does it just need a defibrillator?

Is Loyalty dead, or does it just need a defibrillator?

Is Loyalty dead, or does it just need a defibrillator?

Amrith G
VP, Marketing | June 28, 2021


Okay, so that is not entirely true. Customer loyalty isn’t really dead – it’s still a top priority for marketers and brands world over.

Only thing is, it’s vastly different now.

For one, brand-centric loyalty metrics like the recency, frequency, and monetary value (RFM) of customer spends aren’t relevant anymore. Instead, today, loyalty is all about how well your brand fits into each customer’s life, powered by emotions.

In 2021, if you want customers to continue buying from your brand, just showing up with good products or services isn’t enough. You need to offer additional value, and it has to be personalized to fit each individual customer.

Which brings us to the most important portion, “lifestyle marketing”.

In a world where technology has drastically altered consumer lifestyles, it is the panacea to your customer loyalty conundrum. It involves building brand affinity by offering content and experiences that your audience doesn’t want to live without. This is why, today customer loyalty can be built through wholesome experiences, enhanced by instant gratification and hyper-personalization.

But, first, let’s unpack the reasons for the evolution of customer loyalty to what it is today.

Why customers deserve their pound of flesh in the digital era

Today’s customers are a mobile-slinging, well-informed, and dynamic bunch. They are switching between channels, devices, and sites as they shop. At the same time, they are spoilt for choice, constantly being bombarded with targeted messaging, on their smart devices.

Technology has also lowered switching costs. So, while starting a new business and acquiring new customers has become easier, so has losing customers. Especially considering it costs 5 to 10x more to acquire a new customer, your efforts need to be focused on retaining loyal customers.

All of this has completely shifted the power dynamics. It’s the customers, and not brands, that wield the real clout and they are demanding their pound of flesh. They want a relationship that is more than just basic transactions.

To stay relevant, brands not only need to innovate beyond traditional offerings but also need to transform their loyalty programs into customer engagement engines. By embracing lifestyle marketing brands have started to place customer engagement at the core of any customer-brand touchpoint.

This is why you will find B2C and B2B2C businesses trying to become lifestyle brands. For instance, several insurers are venturing into fitness and wearables. Traditional banks are emulating a super-app-like ecosystem of digital lifestyle services within their banking apps or jumping on the Buy Now Pay Later (BNPL) bandwagon. Speaking of wagons, something core to people’s daily lives such as owning and fueling an automobile to move from point A to point B is shifting from a single price tag to a subscription-based service offering a lifetime of energy in form of battery swaps (electric cars).

But four fundamental questions remain!

1. What is the purpose of a business?

Contrary to popular opinion, brands shouldn’t be only about making profits and providing employment. These are merely by-products of doing business. Instead, your focus needs to be all about offering customers ‘real’ value by addressing their needs and solving their problems. The idea is to keep them constantly engaged. Ultimately, this value exchange creates a sense of emotional loyalty and shared purpose amongst your customers.

2. How to run loyalty programs right?

Loyalty programs have become a hygiene and a prerequisite. Today, successful loyalty programs run by Starbucks and American Express are considered the gold standard.

The only issue is that they are not very well thought-out. Mostly, they are just knee-jerk reactions to a competitor’s customer retention efforts.

To create loyalty programs that offer more strategic and long-term value to customers, you can follow these strategies:

  • Deliver additional customer value, be it functional, emotional, social, aspirational, or psychological, above and beyond the core offerings. Customers really value such add-on benefits. This is why ‘Paid Loyalty’ programs (like Amazon Prime) are becoming so popular.
  • Harness customer data smartly to offer hyper-personalized and authentic appeals to the head and heart. Thus, actively giving customers a reason to earn and burn their loyalty points.
    Is Loyalty dead, or does it just need a defibrillator?

    Source: McKinsey & Company – Preparing for loyalty’s next frontier: Ecosystems

  • Balance monetary rewards with experiential offerings such as exclusive events and early access. After all, 72% of millennials prefer to spend on experiences vs products.
3. What is the purpose of customer engagement?

The goal of customer engagement is to secure top-of-mind recall for your brand. This can be achieved by delivering customer value through interactions across varied channels that strengthen the relationship with customers.

The only problem is, nowadays, the focus of customer engagement and loyalty programs have shifted AWAY from customer value. Customer engagement strategies are disjointed from consumer lifestyles.

Luckily, Perx lifestyle marketing solutions resurrect loyalty as a concept for brands. We help by building data-driven engagement opportunities, targeting customers, and rewarding their actions. Growth in customer engagement rate by up to 6 – 12x compared to what you are experiencing now with traditional digital marketing.

4. What exactly is customer value?

Customer value is the satisfaction a customer experiences (or expects to experience) by taking an action relative to the cost of that action. To deliver real customer value, be sure to get regular customer feedback. Find out what the customer considers important and deliver better on these factors than the competition.

Tying all of it together

Any customer engagement strategy or loyalty program has to be centered around consumers’ lifestyles. Why? Because as individuals and as a society, our needs have evolved over time from the tier-1 physiological needs to the more sophisticated cognitive and self-actualization (emotional) needs.

Is Loyalty dead, or does it just need a defibrillator?

Source: 1 Maslow’s Hierarchy of Human Needs

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The real cost of standalone loyalty programs

The real cost of standalone loyalty programs

The real cost of standalone loyalty

The real cost of standalone loyalty programs

Martech Influencer, CEO of Esco Media | June 29, 2021


How are top enterprises leveraging loyalty programs? And more importantly, what is the cost and benefits of such programs?

Before we answer that question, let’s first align on what is a standalone loyalty program?

A standalone loyalty program is one that is static and transactional. Such programs only get triggered with the purchase and ignore all other actions taken in a customer journey.

An integrated program is dynamic. It aligns with every action a customer takes in a journey, rewarding him/her for specific ones that matter.

Integrated programs have traditionally been a win-win for both customers and brands. In fact, 58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience.

And for brands, over 70% of consumers are more likely to recommend a brand if it has a good loyalty program.

Now that we’ve covered the benefits, what are the costs?

Hidden Cost Of Standalone Loyalty programs

Even though it takes substantial time and effort to build the network and rewards, the outcome and ROI don’t justify the efforts put in.

Some of the other challenges standalone loyalty programs pose include:

  • Limited area of operations

    Standalone loyalty programs can work with specific geographical locations. Therefore, they limit your marketing reach. If your business needs to expand into another market, for example, then you’ll have difficulties implementing the standalone program there.

  • Brand liability

    Loyalty program liability is an actual liability for brands in their financial books. A static, standalone loyalty program only enables customers to earn points. All of a sudden, a few million points accumulate with little to no burning of points by customers (e.g. redemption of rewards and services, etc). Why is that? It’s because of the nature of a standalone program, that focuses on being a mere ledger of points and not one that actively engages the customers nudging them to burn and redeem services and rewards.

  • The tipped scale of efforts and benefits

    The tipped scale between the efforts that go into building the program is so much that it outshines the benefits for a brand. For instance, a 4 – 6 member team may spend roughly 1,000 hours collectively each year to scout, shortlist, partner, negotiate and procure rewards and reward partners.

  • No scope for growth

    Due to their inefficiencies, many standalone loyalty programs fail to trigger customer actions (or additional purchases). For example, customers may find it frustrating when they aren’t able to redeem their loyalty points on other platforms. This may negatively impact their repeat purchases.

From Cost Centre To Cost Saver

Here are just three ways to cut costs and drive revenue with AI-enabled automated and personalized loyalty programs.

  1. Generate new revenue streams with m-commerce in-app reward stores.

    You can instantly set up your own m-commerce in-app reward stores and create a new revenue stream. The in-app reward stores could help you develop your own marketplace, where customers can trade in points or rewards.

  2. Choose from curated rewards tailored to your customers’ lifestyles.

    Rewards can be filtered based on location, popularity, categories, expiry, availability, and price. For example, the rewards for newly introduced products could be different from older products.

  3. Reduce time spent on manually identifying, procuring, and managing rewards.

    Businesses spend a lot of time verifying and reimbursing rewards. Moreover, manually managing vendor relationships, as well as identifying and procuring rewards can be costly and time-intensive. Instead, your resources can be redirected towards additional activities such as optimizing campaigns.

The time and costs saved by replacing manual processes with personalized and dynamic customer engagement can boost your productivity and revenue.

How Top Brands Are Reinventing Their Approach To Building Loyalty

Here are just a few Asia Pacific-based brands that are modernizing their loyalty program.

  • Singapore’s leading telecom company achieved around 27% growth in monthly active users or MAU with the help of dynamic customer engagements.
  • A Philippines-based leading electronics chain was also able to improve their conversion rate by almost 90% with loyalty programs.
  • A leading global bank used gamification to achieve credit card spends in excess of USD200 million.
Loyalty Marketing For The Mobile-First Economy

It is clear standalone loyalty programs do just that – ‘stand alone’. They are expensive to run because of their inefficiencies. So, it is important to look for a viable solution as you update your customer rewards strategy. For more information, click here to learn more about how you can resurrect your loyalty or rewards program in your pursuit of building customer loyalty.

Ready to transform your rewards, loyalty, and customer engagement strategy? Get in touch for a tailored demo today, and add it to your marketing toolkit!

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