2024's loyalty programs aren't just retail therapy; they're the ultimate marathon in audience engagement - be ready to go the distance. 🏁🔥💥
Loyalty programs have evolved from simple paper punch cards (though still relevant today) to sophisticated digital experiences, resonating across generations of shoppers. The traditional BuyXGetY or BOGO strategies have long captivated consumers, but these tactics have transformed as we move into a fully digital age.
Like other parts of retail, loyalty is migrating from buying to shopping. Brands and consumers are playing the long game with engagement for audiences becoming a rewards lifestyle. Sturgis (started in 1938), concerts, and Dota 2’s hero-sized fly-in gaming tournaments are all examples of next-level loyalty and becoming more of a lifestyle.
In the summer of 2011, I wrote the
'Gamification and Audience Engagement' concept, initially drawn from the gaming industry. This approach has since been seamlessly integrated into loyalty programs, driving 25% revenue improvement for a global newspaper, grocery chain, and the then leader in unattended retail.
Recent studies from Harvard Business Review’s “Does Gamified Training Get Results?” illustrated in select studies that gamification improved employee productivity and results by 25%. Gamification creates new behaviors and makes them into habits.
The rise of Gen Z and Alpha generations, who are digital natives familiar with gamification through their upbringing, has further propelled this trend. These digital natives respond well to incentives cleverly termed as 'gumballs' – rewards offered in exchange for interactions like providing an email address. Give us your email address, and we’ll give you 10% off/a white paper/level up your character.”
But what about high-value items like skis or phones? How do loyalty programs fit into this context? Brands like Harley-Davidson, Apple, and Tesla have earned [media] strong fanbases without traditional loyalty programs, relying instead on organic customer engagement and storytelling.
A further and more enticing example was “Bowie Bonds.” In a creative twist, David Bowie's 1997 "Bowie Bonds" exemplified an innovative approach to merging investable assets (value through future earnings and rated by investment agencies) through 25 of his famous albums, highlighting the potential for unconventional loyalty strategies.
Gamification is transformative.
Today, omnichannel and loyalty through gamification have used the high-ticket item approach to build deeper audience engagement. No longer the singular buying experience but an integration of a rewards lifestyle. Gamification encourages autonomy, increased engagement, and skills development beyond the program. Why? Users are incented to find new and different ways to the top of leaderboards.
Open Loyalty’s 2024
report shows gamification with investment and implementation strategies at the top of the Loyalty leaderboard. Takeaways from this year’s NRF conference shed new light on the continuing trends in the landscape. One key takeaway was the importance of personalization in loyalty programs. This emphasized that personalized rewards enhance customer satisfaction and significantly increase repeat business.
Another highlight from the NRF was the success of gamified loyalty programs in driving customer engagement. Gamification as a sub-set of omnichannel is a “one to watch” for 2024. And, of course, we are seasoning everything with AI due to its power as an enabling technology.
Recap
Loyalty programs in 2024 are more than rewards; they're a lifestyle. Evolving from paper punch cards to digital experiences, they now integrate gamification, appealing to Gen Z's digital natives. Brands like Harley-Davidson and Apple bypass traditional loyalty schemes, focusing on organic engagement. With gamification boosting productivity and engagement, loyalty strategies are becoming more personalized and impactful, driving customer satisfaction and repeat business.
The key? Blending traditional rewards with innovative, experience-focused approaches.
Food for thought:
- How will your loyalty programs improve CLTV (Customer Lifetime Value) via gamification?
- What are your three audience engagement strategies that give customers the dopamine rush?
- How will you leverage gamification principles to create a sense of belonging and uniqueness for influencers and consumers, especially in social selling?
🎯💡🛍️ #FutureOfLoyalty #GamificationInRetail #DigitalEngagementTrends
