Application Of Game Thinking On Non Game Contexts

1494 Words Aug 19th, 2015 6 Pages
Gamification helps customers interact with brands directly. TechValidate’s research found that “30% of companies using gamification improved registration conversion rates by upwards of 50%.”

Companies see gamification as a way to encourage more active online communities, reward website visitors, and even increase sales revenue.

How does gamification fit into customer loyalty? And how can we use it retain more customers?

Why Gamify Customer Retention?
Gamification is the “application of game-thinking in non-game contexts.” We simply borrow the mechanics of traditional games and apply them to uncommon concepts, like customer retention.

Acquiring new customers is expensive. So, reducing customer churn can greatly impact your company’s financial health. A study in the Harvard Business Review noted that increasing customer retention by 5% can generate a 25%-95% increase in profit.

The main objective of retention is to continue ongoing relationships with customers. Brand loyalty is considered difficult to measure. So, experts generally use customer engagement as an effective indicator of loyalty.

An engaged consumer is more likely to stay loyal and buy more products and services. By introducing games, businesses motivate shoppers to indulge their competitive instincts to drive engagement.

In return, your company should notice an increase in lifetime value. When executed correctly, the LTV of loyal customers should be 15-40% higher than the LTV of your average customer.…
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