Are Loyalty Points in the gaming industry really ‘Loyal’? What’s the solution?
Did you know that on an average every adult is associated with 8–9 loyalty programs? These statistics are certainly not surprising. Loyalty programs have been in the industry for years now. Obviously, with time the loyalty schemes have evolved, these programs have been constantly used by the businessmen to retain customers.
Technology has burgeoned every sphere of our lives and surely the loyalty rewards are no different. The introduction of ‘blockchain technology’ has completely revolutionized every possible industry.
However, there are certain loopholes or flaws in the traditional loyalty program system that needs to be fixed. This article will highlight the missing links in the loyalty programs offered by the gaming industry and the ultimate solutions that can help in completely revolutionizing the broken loyalty programs.
What are loyalty programs?
Loyalty programs are simply ‘rewards’ or ‘points’ that are given to customers by business owners for customer retention and acquisition. These schemes are extremely popular among businesses where customers are bound to make frequent purchases. These rewards schemes vary from business to business but they more or less operate on the same basis. The more you associate with the brand or company the more loyalty rewards you are offered. Generally, you need to give some personal information to be a part of these loyalty schemes.
Almost every industry has some or the other loyalty schemes, the gaming industry is no different.
Loyalty Programs in the gaming industry
The gaming industry is massively popular among the gamers across the world. In fact, it is one of the most revenue generating entertainment industries. In 2017, the gaming industry generated grand revenue of $108.4 billion dollars. These numbers are enough to prove the popularity of the gaming industry worldwide. Over the years, the eSports, online casinos and in general the entire gambling industry has evolved owing to excessive competition, increased usage of internet, and increased number of gamers. This is the reason that the entire gaming industry is highly competent which ultimately leads to saturated markets. This is why customer retention and acquisition becomes very important in the industry.
So, to attain a competitive edge just like every industry online gaming industry also offers loyalty programs to the gamers for attaining customer retention. Customer loyalty is as important to the gaming industry as for other industries in the business. This is actually an ideal solution.
But, realistically loyalty ‘points’ or ‘schemes’ fail to lure gamers for the long run. The gamers are endowed with more than one program without much difference in the services. There are several missing links in the loyalty programs offered to the gamers.
The missing links in the loyalty programs offered to the gamers
So, it is very clear that the loyalty programs offered in the traditional gaming industry are certainly broken and they need to be fixed. Now, let’s have a look at the flaws in the loyalty programs.
- Similar awards fail to attract the gamers
The gamers are rewarded with loyalty points which they can use for extra spin-offs, bonuses etc. To attain these points the gamers need to devote specific time to play games this is not possible for everyone. Moreover, the loyalty points that are offered to the gamers are too small. So, ultimately these points fail to be worthy for the gamers.
- The loyalty points are baseless
These points are difficult to earn and once earned these points are very difficult to redeem. Often, there are certain terms and conditions applied to redeem these points. Such schemes are simply not going to stop the gamers from visiting other games and services. The gamers cannot earn cashback on these points which are baseless for worldwide gamers. Such intricating loyalty points simply cannot retain the gamers for long.
- Loyalty points are merely loyal
It’s true that not all loyalty points are scams. But it is also true that many of these programs are scams and fraud. The gamers are more conscious than ever due to the prevalence of cyber threat in the gaming industry. The gaming industry constantly suffers from a heavy loss in revenue due to frauds, scams, data thefts and malpractices. This bitter truth about the loyalty program theft hinders gamers from participation in games and services.
- The insignificance of loyalty programs
Most of the loyalty programs offered to the gamers work on the one programs fits all model. There are gamers that utilize their maximum time in playing games over a platform. And then there are gamers who only play on the weekends. Obviously, the ones that play more are giving you more business and vice versa. So the idea of a single loyalty program serving all the gamers is realistically irrelevant.
The loyalty programs are hardly promoted
Promotions play a crucial role in every program or scheme offered to the customers. Similarly, for retaining gamers and attracting new ones, it is important to promote the loyalty programs. If no one knows about your loyalty program why would they even be a part of it?
The loyalty programs in gaming industry fail to create necessary hype among the target audience of the gamers. This simply creates lesser engagement and involvement of the gamers.
Currently, all these problems are massively affecting the gaming industry. There is a huge disruption in the gaming industry. But, the blockchain technology can prove to bridge the gap between the loyalty programs. Let’s see how?
Blockchain Fixing the loyalty programs in the gaming industry
The blockchain technology seems to be the most promising technology in completely revolutionizing the broken loyalty program and in general the entire gaming industry. Gaming platforms that run on blockchain are quite popular these days. These platforms aim at providing all the essential infrastructures and services to the gamers. This will surely reduce the dependency and involvement of third parties and grey markets. This makes the entire ecosystem 100% secure and transparent.
Furthermore, the immutable blockchain technology depends on incorruptible smart contracts. It is impossible to manipulate this data until and unless all the nodes arrive in a consensus. This is an ultimate solution to secure each every gamers’ rights. The technology depends on cryptography to store private as well other data. With blockchain technology bringing all the gaming services under one platform and at the same time offering one loyalty program, it will surely gain gamers trust and will lure the gamers to play and earn more. Likewise, gamer retention and acquisition is fairly possible. These platforms allow gamers to earn loyalty points that are unified. These loyalty points are earned in tokens that can be traded for other cryptocurrencies and fiat currencies.
Ultimately, blockchain offers a clear solution to bridge the gap in the broken loyalty system by making the gaming industry robust, self-regulated and transparent. Platforms like Big Bang, Buff, Monetizr, and FunFair are some of the latest examples of blockchain powered platforms that are constantly working towards making the online gaming industry and the loyalty programs 100% secure and transparent for the gamers worldwide.