Gamification is becoming an increasingly popular strategy for brands and retailers to enhance customer interactions and boost sales. By incorporating game elements such as points, rewards, challenges, and interactive experiences, companies are finding new ways to engage consumers and build loyalty.
This approach encourages shoppers to spend more time with the brand and increases the likelihood of repeat purchases.
Enhancing loyalty programs with gamified elements
One of the most effective uses of gamification is within loyalty programs, as seen in some notable Australian retailers. Woolworths Everyday Rewards incorporates gamified features by allowing customers to earn points with every purchase, which can be redeemed for discounts, fuel vouchers, or Qantas points. Woolworths also engages users with seasonal challenges, encouraging them to shop more frequently to achieve specific goals and unlock additional rewards.
Similarly, Coles’ Flybuys program includes interactive features like “Flybuys bonus boosters,” where shoppers can activate special offers and earn extra points by purchasing select products. The program has also integrated elements like limited-time challenges that motivate customers to meet spending targets, driving both engagement and sales.
Creative gamification in action
There’s no denying that gamification offers numerous benefits to commerce, particularly around encouraging consumers to spend more time and money with a brand. Increased customer engagement and higher conversion rates are primary advantages, with some data indicating gamification strategies can uplift customer engagement by 47% thanks to the creative element of making shopping more interactive and fun
This heightened engagement can have real effects on business revenue with increased engagement via gamification increasing revenue by up to 10%. It also leads to enhanced loyalty, as rewarding customers for their interactions and purchases fosters stronger relationships and increases customer retention, as well as reduces the rate of abandoned carts.
Beyond loyalty programs, Australian retailers are experimenting with creative ways to engage users. JB Hi-Fi, for instance, ran a “Spin to Win” campaign that allowed customers to spin a digital wheel for a chance to win discounts or gift cards, adding an element of fun to their shopping experience. This interactive gamified strategy not only encouraged participation but also helped boost sales as customers were more inclined to complete purchases to claim rewards.
Another trend gaining traction is the use of augmented reality (AR) to gamify shopping experiences. Kmart Australia has introduced AR features in its mobile app, allowing customers to virtually try out furniture and home decor in their own living spaces before making a purchase. This immersive experience enhances customer confidence in their buying decisions while creating a fun, engaging process.
Data and personalisation advantages
Gamification strategies also provide retailers with valuable customer data. By tracking how customers interact with gamified elements, brands can gather insights into preferences and behaviours. This information can then be used to tailor marketing and product offerings, ultimately improving customer satisfaction and boosting sales.
Some Australian brands are taking on similar strategies to popular Chinese brands SHEIN and Temu by integrating with popular gaming and social platforms. Cotton On, for example, has experimented with social commerce by leveraging platforms like TikTok to run interactive campaigns that invite users to share outfit combinations or participate in challenges, creating a sense of community while promoting the brand.
Key considerations for successful gamification
While gamification can significantly enhance customer experiences, brands must ensure that their approach aligns with their identity and values. Overcomplicating the experience or offering overly generous rewards can diminish the impact of these initiatives. Striking a balance between simplicity and fun is key to keeping customers engaged without overwhelming them.
Additionally, as gamification often involves collecting customer data, brands must prioritise transparency and adhere to privacy regulations to maintain consumer trust.
Composable commerce and gamification
Composable commerce empowers retailers to build tailored and flexible gamification experiences that adapt to ever-changing consumer demands. With this modular architecture, businesses can rapidly innovate, integrating new gamified elements or refining existing ones without disrupting their core systems. This agility allows brands to offer personalised experiences at scale, responding to customer preferences in real time.
By incorporating gamification within a composable framework, Australian retailers can stay ahead of the curve, improving both customer retention and conversion rates while maintaining seamless, efficient operations. As gamification evolves, composable commerce ensures retailers have the foundation to adapt and grow, future-proofing their digital commerce strategies.
Nina Jonker-Volker is vice president for Asia Pacific at commercetools.