Retail surgery: How can the effectiveness of loyalty programmes be increased?

The popularity of online shopping has led to consumers becoming more brand-promiscuous. However, the success of effective loyalty schemes such as Tesco Clubcard shows that with the right incentives across channels consumers still value long-standing retail relationships.

Amit John, principal consultant at digital commerce solutions company Tryzens, says retailers should introduce competitions and games to entice shoppers in.

He says: “In online retail, we have lost much of the exciting, social aspects of shopping in favour of convenience and speed. This offers a significant argument in favour of the inclusion of gamification in loyalty, as it draws on a sense of competition among customers.”

He adds Teleflora, a US florist, reports seeing conversion rates improve by 92%, having built-in gamification.

John says: “Encouraging shoppers to respond to their competitive instincts and bringing back the fun and social aspects of bricks-and-mortar shopping will drive loyalty across channels.”

Gamification has the potential to increase customer retention and can be integrated into any loyalty scheme, in a way that is right for the retailer.

However, the process for a combined gamification and loyalty scheme is complex, and retailers need the correct technologies in place to ensure smooth operations.

Nonetheless, put simply, gamification can drive purchases by adding more levels of customer engagement to the retail experience, providing an experience online that customers will hopefully want to return to.