Gamification: The Unsung Loyalty Hero
Understanding how to play the game to your advantage is a challenging skill to master both as a consumer and as a brand.
Gam·i·fi·ca·tion — the application of typical elements of game playing (e.g., point scoring, competition with others, rules of play) to other areas of activity, typically as an online marketing technique to encourage engagement with a product or service.
Let’s play out a scenario. You have to fly from New York to Chicago. When it comes to the airlines, you’ve got a few options:
Airline #1: Fly direct from NY to CHI in a quick two-hour flight using an airline without a loyalty program. Fly time: 2 total hours.
Airline #2: Fly indirect from NY to CHI, stopping in Dallas for a quick one-hour pit stop but gaining 3X loyalty points. Fly time: 4.5 total hours.
Both flights are the same cost. One just takes longer to get to your destination and gains you some “points.” So which do you choose?
If you’re anything like me, you’ll choose airline #2 that rewards you with the most frequent flyer points. I’ve been on a mission to get as many frequent flyer miles as possible with one airline. But why do I eat up twice as much time to earn points?
Because the accumulation of points sums up to a greater good. Take for example the points system with Southwest Airlines. Each point is worth roughly $.015 but if you gain enough points, you can earn buy-one-get-one status and take a companion with you anywhere… for free.
Gamification wins again.
My loyalty is pledged. It kills me to fly with another airline because that means I’m taking points away from my progress towards the top-tier in their loyalty program.
This is a perfect example of the worlds top brands using gamification to increase consumer loyalty. By joining a loyalty program, consumers are pledging themselves to a company for an undisclosed valued.
For all you “The Office” fans out there, it’s like trying to earn enough “Schrute Bucks” so you can take a little extra time or lunch. Each buck has zero value outside of that brand, but within the brand the buck has just a little more value than zero.
Ultimately it comes down to the fact that brands want to own the habits and routines of their consumers. If they can consistently maintain enough of their loyal audience, the brand will flourish and prosper as revenues soar.
So. Play the game as you must. Take those extra indirect flights and go earn those benefits!
Find out more at Honeycommb.
