Traditional methods of attracting customers have become less effective in this ever-changing digital world. This is the reason e-commerce businesses are turning to new alternatives in any way possible. Within such exploration, there is one powerful tool that acts as a savior. And such a dynamic idea deals with the use of “Gamification.“ The big idea of this tool is to transform routine online shopping activities into engaging and joyful interactive experiences. It incorporates various elements, such as rewards, challenges, and competition, that give customers a sense of achievement. In this article, we will talk about the importance it holds for an e-commerce business. Along with that, the discussion will also dive into the various methods that can be leveraged for improving customer engagement.
Picture Credit: Yan Krukau
Importance of Gamification
For e-commerce businesses, gamification methods are an appealing implementation option since they provide a wide range of benefits.
Minimizes Cart Abandonment
One significant issue that e-commerce businesses confront is cart abandonment. Latest research emphasizes the importance of the issue by demonstrating an alarming average industry cart abandonment rate of 69.99%. This problem is complicated and involves many different elements, with the primary concern involving a lack of engagement.
E-commerce businesses should encourage an awareness of urgency among their customers to help solve the problem of cart abandonment. By strategically implementing time-bound deals, this approach encourages customers to quickly complete their orders. Businesses effectively encourage a larger volume of customers by giving specific benefits with a defined time limitation. This enables them to complete their purchases before the specified time frame ends.
Catches the Attention of Customers
Getting and keeping customer focus is a problem that businesses constantly face. As a result, there is a tendency for customers to become dissatisfied and choose competitors who offer more engaging experiences. Therefore, gamification integration stands out as a clever solution to this problem. By providing entertainment value and a positive overall experience, it helps businesses effectively engage customers.
This goal can be achieved in a variety of ways, with the introduction of gamified reward schemes. Along with occasional lotteries that give customers the chance to win substantial discounts, these schemes successfully retain customer interest. Businesses successfully capture and maintain customers’ attention through such activities, generating more engagement and interest.
Picture Credit: Luke Chesser
Gathers Customers’ Data
Businesses may leverage the power to obtain customer data by utilizing the right gamification tools. They may use it to create more individualized, better customer experiences. The gathering of customer information when participants are registering for rewards programs serves as a perfect example. This data forms the basis for creating product recommendations and other relevant interactions that are customized as per customers’ preferences.
In addition to building a collection of zero-party data, this strategic approach enables a deeper connection with customers. Further, the user-provided data is of utmost relevance as the digital environment shifts to a cookie-less paradigm.
Enhances Loyalty of Customers
Gamification integration improves a business’s capacity to hold onto customers more effectively. A thorough investigation revealed an incredible 22% increase in brand loyalty and a further 15% increase in brand identity. It supports the crucial role played by gamification in building customer loyalty.
This tactical choice has positive economic effects in addition to strengthening current relations with customers. Businesses save revenue by maintaining a larger customer base instead of investing resources in attracting new customers. This is achieved by encouraging repeat purchases and making sure the revenue is coming in consistently.
Methods for Improving Customer Engagement through Gamification
There are several methods that businesses can use to foster customer engagement by leveraging gamification. These also include the power to elevate brand loyalty. So, let us look into them one-by-one.
Allowing the Customers to Win Discount Coupons
Businesses should successfully provide discount coupons while thinking about methods to maintain engagement following periods of customer inactivity. However, allowing customers to actively earn these discounts can result in a greater level of engagement.
The addition of a gamified experience might greatly improve frequent encounters with the business. It comes as an effect of giving customers the chance to obtain discounts through their own active efforts. This strategy strengthens the bond between customers and the business by encouraging a sense of success and participation.
Picture Credit: Karolina Grabowska
Enriching Customers for their New Invites
The development of a referral program is another approach to gamifying the e-commerce process. It encourages customers to refer others to the online shopping site, which will enhance the gamified experience. In practice, a rewarding system is set up where every customer receives incentives for successfully bringing on new members.
When new customers sign up, the person who invited them receives a reward. It provides encouragement to support the e-commerce business. Furthermore, by rewarding both the invitees and the individuals who make the invitations, this strategy multiplies its effects. The program generates a winning dynamic that encourages natural growth and higher engagement by concurrently paying both parties.
Leveraging Quizzes and Trivia
Quizzes and trivia are examples of entertaining, engaging activities that can be used to motivate customers. It encourages their ongoing use of the e-commerce platform. These interactive games give participants the chance to ask a variety of questions and offer different prizes for the right answers.
Customers get the excitement of knowledge testing while having their cognitive capabilities stimulated through this method. It is carried out in an effort to earn rewards. However, customers have a strong incentive to return to the e-commerce platform because of the attractiveness of these engaging activities. As a result, this promotes ongoing engagement and strengthens brand loyalty.
Organizing a Competition and Offering Exclusive Rewards
Customers appreciate healthy rivalry, and businesses may capitalize on this inclination by providing competitive activities with incentives like prizes. They may encourage this among customers within an application, which can be in the form of a lottery. This implies that users will compete with one another for the chance to win unique rewards through random selection.
As a substitute, businesses can entice customers to join a community of the brand within the app. The submission of user-generated material will be encouraged as a result. In exchange, customers receive discount vouchers and various rewards. It fosters a sense of community among customers, making them feel connected to a collective of like-minded individuals. Due to the enjoyable and gratifying interactions provided by these gamified experiences, this strategy also fosters greater brand loyalty.
Picture Credit: Mohamed Hassan
Incorporating Spin-The-Wheel Method
This gamification method gives customers the chance to earn rewards by including an actual game aspect. Businesses can set up a situation where customers are allowed to spin the wheel periodically. For example, it can happen every week.
The rewards would be distributed across several wheel sections. If the wheel stops spinning while resting on a prize section, the user immediately receives the reward. A system like this demonstrates flexibility by being able to provide a variety of benefits. It may take the form of individualized discounts catered to each customer’s tastes or general discounts that apply.
Similar to how quizzes and trivia build interest, the spin-the-wheel game keeps participants actively involved. Customers are encouraged to return to the site for further interactions by offering a range of intriguing rewards. This dynamic approach successfully encourages involvement while also offering alluring incentives.
Making Leaderboards
Utilizing leaderboards is a very efficient way to encourage customers’ competitiveness. Depending on their preferred gamification strategy, businesses may use leaderboards in a variety of ways. Making leaderboards that divide users into groups according to various application interaction types is one strategic option. This categorization could entail doing certain activities, such as in-app challenges or onboarding processes.
Customers may also be graded based on how well they participate in other gamified activities, including user competitions. The allure of ascending the leaderboard incentivizes users to sustain their engagement, consequently intensifying their loyalty for purchases.
Furthermore, businesses can modify the leaderboard’s ranking choices by including rankings like the top 10 or 100 participants. Cues like arrows or indications showing upward or downward movement in rankings might be included to further increase customer engagement. As they see their development or reversal, these cues heighten the competitive drive. Therefore, it stimulates a heightened level of engagement and interaction.
Saajan Ahmed
(Assistant Vice President - Sales)
Hi, Saajan here! reach out to me with any questions you might have, we'd be glad to help.
Gamification has become a game-changer in a time when creating a strong online presence requires more than just practical utility. It turns the experience of doing business online into an adventure, an amusement, and a platform for communication. Adopting gamification may give businesses the competitive edge they need to prosper as they adapt to the changing digital world. Ultimately, it is a strategic necessity for e-commerce businesses in order to increase customer engagement.
