By Juliana Walker
People love free products, so gamifying and rewarding customers is a great way to build loyalty. But, there are many ways to do that. Here are some of the different kinds to consider:
1. Fixed Action
This is the most common and standard practice of gamification in marketing. With this, the customer knows what they have to do to be rewarded. We see this type of reward in classic programs for free food items at a restaurant or frequent flyer miles from an airline. These programs engage customers and build up loyalty by providing them with a reward the more that they visit their business.
While fixed action loyalty programs are great, they can be a bit dull. Random rewards add a little bit of spice to the rewards. Often times with a random reward, the customer might see it coming, but they don’t know what it’s going to be. It’s like getting presents on your birthday, but you probably don’t know what’s inside. A great example of this is the Sephora Beauty Box, where customers expect a monthly box of beauty/skincare products, but they have no idea what they might be.
Slightly different from a random reward is the sudden reward. With the sudden reward, the customer doesn’t see it coming at all. Usually, they have to take an action that triggers it, but, it’s an action they didn’t know they would receive a reward for. An awesome example of this is the “Chase picks up the tab” campaign. After paying with a Chase card sometimes, Chase will text you afterward to say that they have rewarded you and you get $5 back from your purchase. Sudden and satisfying.
Gifting is a great example of growing loyalty from word of mouth. These rewards can’t be earned, they can only be given to you by someone you know. A great example of this is Glossier’s link sharing network. After you make a purchase and an account, they provide you with a link you can share. This link will provide you with credit at the store and give your friend a 20% discount off their purchase. Then, they get their own link and your business keeps growing.