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What Gamification Is & How Retailers Are Taking Advantage of It

Posted by Drew Melendy on Mar 17, 2020 12:59:52 PM
Drew Melendy

Customer loyalty today depends more on customer experience than pricing and product. Because of this, retailers are looking for new and unique ways to engage and delight their customers. For many, gamification is the answer.

Couple celebrates winning an item from a Facebook Live Sale.

What Is Retail Gamification?

Retail gamification means incorporating game mechanics into the shopping experience. Virtual rewards, such as points, credits, gifts, BOGO deals, or free shipping, make customers feel like they’re working towards a goal, making shopping into a fun and exciting game.

It may sound a little juvenile, but customers are clearly enjoying the game-like experience. On average, retailers that use this technique have seen up to 30% growth in loyalty measured in repeat visits and viral distribution.

Game-based retail transforms passive customers into competitive players, driving defined shopping behaviors, such as commitment to buy, increased cart size, and continuous engagement.

This technique can be applied in many areas of the shopping experience, whether that be providing loyalty programs and referral programs to encourage repeat business and word of mouth marketing, incorporating waitlists that encourage shoppers to compete for sold-out items, or offering the prize of free shipping for quick checkout.

The Takeaway

Gamification is all about providing powerful incentives to motivate increased shopping and customer engagement but with a fun twist. As it becomes more challenging to retain and engage customers, gamified retail appears to be a go-to tactic to increase sales, brand awareness, and customer loyalty, while greatly enhancing the shopping experience.

Topics: Marketing, Sales, Gamification