According to the most recent data,
brands spend 10-20% of their total revenue on branding activities and brand
engagement. Depending on how big the company is, that's a lot of money. But we
can see why they're spending their money. Data published on Forbes highlighted
how engaged customers spent between 20-40% more than regular, obviously
non-engaged customers.
But the question we want to answer is
how gamification has changed brand engagement. Everyone loves a good game—there
are so many online
games to play with friends that, whether you consider yourself
a ‘gamer’ or not, there’s a good chance you partake in the hobby already…maybe
even without realizing it.
Below, we'll explore how gamification
has changed brand engagement.
Gamification Creates a More Engaged Customer Base
Judging by the statistics in the
introduction, businesses want engaged customers. And you can argue they're
engaged simply by shopping or searching, but that's far from engaging.
Being engaged is looking for gaming
titles, games that get you rewards, or generally games that give you something
back. Shein is doing it now with the gaming section of the app.
Now, you might ask why Shein would do
this when people are already on their app to shop. That's where you're wrong.
They're on the app to mindlessly scroll, fill their basket, and maybe never
return. The gamification they've introduced takes the scrolling away and brings
rewards back to potentially paying customers. It's a sense of achievement that
makes it seem OK for them to spend money.
Or, consider how loyalty programs
grant points to keep customers coming back like Starbucks does and their
Starbucks Rewards. With such programs, the more engaged a customer is, the more
loyalty and advocacy they will give to the brand.
Gamification Leverages the Power of Competition
Everyone loves a good competition -
you're lying if you say you're not even slightly competitive. Gamification
strategies include competitive aspects like leaderboards and social challenges
that boost
engagement since humans have a natural desire
to win. As a result, this tactic is easily repeated by brands.
Duolingo assists language learners by
pushing them with daily streaks and rankings, while fitness apps, like Strava,
motivate users by presenting leaderboards to encourage users to outperform
peers. This friendly competition produces stronger and more appealing
products, keeping users engaged and drawing
people back.
Rewards Drive Engagement Even Further
Brands took the idea of gamification
far away from being entertaining, motivating people on a whole other level.
People actively enjoyed using gamified experiences when they received a
substantial reward with cash prizes, discounts, or gifts.
The McDonald's Monopoly game is the
perfect illustration. Their strategy of gamifying promotional activities made
customers return to buy food as they were excited. Gamification combined with
real prizes results in high user engagement when customers want to actively
take part for a chance to win a valuable prize.
Gamification Turns Brand Interactions Into Habits
Engaging in these experiences
regularly allows users to transform the complexities of actions into effortless
activities. That may include checking a finance app every morning for points or
logging into a fitness app to check in; gamification creates the interaction
into brand interactions on a daily basis. Or, again, like with
Shein, most of the games mean users have
to return.
The secret recipe is in the process
of a person's life. Casual users can be turned into brand ambassadors if these
experiences are updated and rewarding. And the more charming and pleasant the
process is, the more users are bound to stay.
Gamification has become a necessity
for every brand that intends to stay in the game. The question is not if
gamification should be used: the faster it's put into place, the better for the
brand.
