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How to Use Gamification to Reward Customers and Engage Prospects

by Darren Steele  |  
September 20, 2012
  |  12,641 views

Everyone wants new business. But sometimes we get so wrapped up in trying to predict what the next great lead-gen tactic will be, we forget that new business doesn't come just from new customers. It also comes from your current customers, and it's a lot cheaper to acquire, to boot.

Most marketers have undoubtedly seen the Bain & Company study that put hard numbers to the new-versus-existing-customer conundrum: it's six to seven times more expensive to gain a new customer than it is to retain an existing one, and a 5% increase in customer retention can boost profit from 25%-95%.

You can always try to make your customers happier by sending them free goodies, responding to emails quicker, and smiling more when you see them, but odds are that any gains you'll see aren't going to move the needle much. It takes more than extra elbow grease on your part—it takes a new approach.

The practice of adding game mechanics to your marketing arsenal will accomplish more than adding a bit of fun: It adds incremental value. Here are three ways to make your existing customers more profitable via "gamification."

Give as often as you take


Haranguing customers with emails, newsletters, and other sales materials that all contain the message "Buy more from us!" can easily lead to customers buying less, as become annoyed and disenchanted with your brand. The value equation for this scenario is unbalanced: customers see more value only if they buy more. However, by applying strategic game mechanics, you can make customers feel as if they're being rewarded immediately and continuously from your communications. In turn, they'll be more inclined to buy because they feel you've been giving them value all along.

One way to start is by looking at your email marketing. What can you do to add more value there? Asking your customers to read your copy is asking them to perform work—often boring work with little or no immediate payoff. So start by cutting your copy in half. Then cut it in half again, and make what's left more focused and interesting.

Next, figure out two things: What is the one action you want the recipient to take after reading this email, and what are you willing to give them for it? If you're trying to get them to make a purchase with a free training incentive, back that train up and do something a little unconventional: Make them earn it. Studies have shown that people actually enjoy something more if they've earned it rather than if they're just given it.


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Darren Steele is the strategic director of Mindspace and co-author of the gamification book, I'll Eat this Cricket for a Cricket Badge. Darren can be reached at darren@mindspace.net.

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  • by Angelia McFarland Thu Sep 20, 2012 via web

    Excellent article. New spin on an old topic...how to win and keep customers.

  • by Veronica Luna Fri Sep 21, 2012 via web

    You are right in that many loyalty platforms fall short in engagement with customers and only mainly offering "stuff" and they do not really create engagement. One new loyalty platform has created the first loyalty platform with embedded gamification concepts. https://www.mplifyr.com Businesses can create over 64 different combinations of earning and redemption offers and can also create custom activities that their customers can do to earn points - such as challenges, contests, treasure hunts and so on to create engagement. They also have leaderboards, status, virtual badges and more. Customer engagement and experiences are key in creating customer loyalty, and they've included it all in one package. Gamification is really a great concept to attract audiences, challenge and engage them like never before. We believe it is the next big thing after social media!

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