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Marketing

28 Aug 2023

Gamification software: Benefits and 6 essential features

Reza Javanian

Mohammadreza Javanian

Talon.One loyalty expert

Gamification-software
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5 minutes to read

Gamification plays on two of our innate human characteristics: curiosity and competitiveness. That’s what makes it a hugely powerful tool for retailers looking to add excitement to their every day customer interactions, and drives huge return on investment - research on the power of gamification shows that when brands incorporate gamification into their customer engagement strategies, they see:

  • A 47% rise in engagement

  • A 22% rise in brand loyalty

  • A 15% rise in brand awareness

To build and iterate on your gamification project, you need a solid gamification software working behind the scenes. In this blog post, we'll look into the advantages and main features of gamification software and guide you through a case study where using gamification software enhanced engagement and increased sales. We’ll cover:

What is gamification software?

Gamification software refers to tools and systems that apply common game concepts such as badges, achievements, points, leaderboards, and more to enhance user experience. In marketing, gamification software is used to boost customer engagement and foster loyalty.

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"Gamification can be as simple as awarding points for purchases or as involved as creating different rewards for specific customer behavior. The guiding principle is the same: gamification makes a serious process, i.e. accessing a website to find out more information or purchasing a product online, more attractive, more compelling, and more likely to hold a customer’s interest. Even better, it’s a tactic that can incentivize the entire customer journey, from acquisition to retention."

James_Dye_TalonOne

James Dye

Country Director UK/I of Talon.One

Data shows that the global gamification market could reach $96.3 billion by 2030, with a forecasted compound annual growth rate (CAGR) of 27.4% from 2023 to 2030. The market's expansion is fueled by enterprise sales and marketing teams adopting gamified technology to enhance customer experiences with added enjoyment.

Benefits of gamification software

Key benefits of implementing gamification software include:

  • Enhanced engagement: While companies use various technologies to keep their customers engaged, gamification software stands out because it infuses elements of enjoyment and accomplishment into the experience. Unlike other approaches, which might feel more passive or one-sided, gamification actively involves customers. This encourages people to accomplish tasks and make purchases, all while having fun. 

  • Increased sales: Gamification is especially powerful as it taps into the brain’s reward mechanism to encourage sales, particularly when combined with coupons or vouchers as prizes. This is because people are more inclined to use a reward they've earned compared to one that's just handed to them.

Example: KFC Japan used gamification to raise awareness about their new product, Ebi Shrimp Puri. The game's storyline featured Ebi shrimp taking over KFC's chicken domain, while players defended the KFC castle. Data revealed that 22% of players used their vouchers in-store, leading to a 106% increase in sales compared to the previous year.

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KFC Japan’s gamified campaign increased sales by 106%. Source: Gamify.com

  • Zero-party data collection: Implementing gamification software allows brands to collect zero-party data - the information that customers willingly and proactively share with companies. For example, running game-based quizzes on your website or app enables you to collect valuable, consensual insights into your customers' product preferences, behaviors, and individual traits.

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Key features of gamification software

With more brands integrating gamification into their marketing strategies, your choice of gamification software is key to setting you apart from competitors. The gamification software you select will rely on the kind of game they have in mind. For instance, if you’re planning to create a full-scale game like KFC, your software choice will differ significantly from when you want to add a spin-the-wheel feature. Key features you will want to look out for include:

  • User ranking: Being able to compare player rankings triggers a sense of challenge and desire to improve. This competitive element motivates users to invest more time and effort into the game, ultimately leading to higher engagement levels. 

If you’ve incorporated a leaderboard in your app, your gamification software needs to include real-time updating capabilities. This way, it can display users' rankings in relation to others.

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Leaderboards create a sense of challenge and the desire to improve among users.

  • Rewards, points, and badges: Elements like badges positively reinforce certain behavior, while appealing to users’ inner collector:  shoppers can, for example, collect points and convert them into badges that represent their achievements. By earning a sufficient number of points and badges, they might qualify for rewards such as bonuses, discounts, or free items.

  • Progress tracker: As customers approach the next game level, they usually become more active. Incorporating a visual progress tracker in your app encourages users to enhance their involvement and earn better rewards. This tracker displays their progress and remaining distance toward the reward.

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Flash Coffee uses a progress tracker to increase user engagement. Source: flash-coffee.com

Progress trackers are especially powerful when combined with push notifications. Push notifications serve as a gentle nudge to re-engage users who have abandoned an unfinished gamified activity or left a reward unredeemed. By sending a personalized push notification, you can remind users of their pending progress or unclaimed reward. Here's how the process would look in Talon.One's Campaign Manager.

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  • Loyalty and referral integration: This feature is vital in gamification software as it aligns the gamified element with your loyalty and promotions strategy. For this, you'll want to select an enterprise gamification platform that lets users add points to their loyalty program's profile or digital wallet, and create referral codes that users can share to invite others to participate.

  • Automated campaign monitoring: Marketing teams often complain about needing to manually monitor reward redemptions nearing completion. In cases of human error or missed updates, customers could miss out on redeeming rewards due to exhausted campaign budgets. To streamline processes and enhance customer experiences, work with gamification software that automatically monitors budgets and updates rewards to 'fully redeemed' status when budgets are nearly spent.

  • Reporting and analytics: Your gamification software can offer valuable insights into which games are more effective in motivating users to take action and use their points. With these insights, you can create games that generate the highest customer engagement.

Case study: Flash Coffee

The Singapore-based coffee chain, Flash Coffee, is disrupting the coffee industry with its app‐based, tech‐enabled take on coffee, and making the app experience enjoyable on mobile devices is a top priority for them.

Flash Coffee teamed up with Talon.One to include a spin-to-win feature in their loyalty program. This encourages customers to log in daily and play a mini-game for a shot at winning special prizes, boosting user involvement.

Flash coffee

"With Talon.One, we now have the power to incentivize any user behavior we want - and make it fun and rewarding in our app. "

David Brunier Flash Coffee

David Brunier

Founder and CEO of Flash Coffee

The spin-to-win addition proved a simple but effective gamified solution, as it enhances customer interaction while driving tangible business outcomes across three key areas:

  • Surprise: Flash Coffee's app consistently introduces new, time-limited rewards, maintaining excitement and encouraging customers to return for more prizes.

  • Delight: Customers experience a feeling of satisfaction by participating in easy mini-games.

  • Earn and burn: Customers are motivated to use their points since they have to put in effort to earn them.

Check out Flash Coffee’s case study to learn more about how Talon.One gamifies promotions and loyalty programs for businesses.

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