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Loyalty Loop and Gamification

Gamification and Loyalty Loop Management- The Core to Succeed in Digital Platform

Before understanding gamification and the loyalty lop lets start with the current digital o social media trends in Pakistan and all over the world. With the surge of technology, industrialization and globalization, many brand shave successfully in the market, offering similar products at different competitive strategy. Now what such trend has done, this particular trend has decreased the customer loyalty towards one brand. Mainly it is because of the “Surgical strikes” that these brands are practicing on consumer through extended exposures in an aim to receive maximum market share. However, this has also laid the meaning, that due to such trend the customers are barged with different alternatives and options n market which is mainly because if extensive expose and social media Nosie thee brand make.

This noise create certain unconscious awareness in the mind leading to consideration if reinforced by friend and hence leading to final purchase decision. Now what this sales funnel do, it disturbs the customer ratio and market share of another brand.Hence in order to remain competitive and advanced, brads are moving towards developing strong engagement with customers that keeps them captivated with the brand and reduces the risk of customer flight that may affect the customer retention rate.
But at customer side, the surge of too many brands have made the customer decision journey difficult to reach at a particular end. It is because, so many brands and products are attacking the consumer’s subconscious mind with the similar offerings and product featuring. Resulting in uncertain end results for a brand.

Now the question arises, how can brands sustain the customer retention and maintain the loyalty towards a singular brand in this age. Though many brand have find the answer to this problem as the loyalty management program and sure they have played great role in managing and retaining the valuable customers for a longer sustainable period of time. But this is not enough to create maximum active engagement throughout that could create and anchor the top of mind position in the customer mind.What all brands urge is to develop the top of mind position in customer mind when thinking of something to buy in the particular category.

For this the role of gamification or Game design has come into being to facilitate the brands I the digital world. Gamification refers to the “game Mechanics” the ban d develop oink order to engage customer with the brand. This not only increase the customer loyalty but also effectively manages the conversion and loyalty loop(we will discuss later).Now brand in order to win the are in the digital realm , pursue the bran game designs in an act to engage maximum audience and to create presence, awareness and also further consideration. For examples of gamification are:

Hyundai

Since purchasing the car is always been a conventional buying decision that requires the customers to purchase the car from the dealer.Hyundai changed the game of the car purchase through a unique game design.It asked the customers to design their dream car and share with friends and that Hyundai will make one of those cars in the next product line.Now what this tactic did, it created strong customer engagement with brand and extended word of mouth. Also it changed the customer perception about purchasing the car online and developed a new trend into the market.
Domino

Domino faces a great competition from pizza hut and other pizza parlors in US and also in Pakistan. What Domino did, it develop an app with the camera feature in IT. Now if anywhere customer see any deal of domino the customer can scan the deal and domino will locate the place where the customer r could get that deal.This developed strong customer engagement with brand and lead to 50% conversions in sales. Also it increased word of mouth, brand awareness and helped the brand in managing the loyalty loop effectively.

Seeing the above example offers us the view that managing the loyalty in digital world can only be successful if the company pursues the gamification technique to entice, engagement and involve customer so to anchor its position in the mind of the customer which would lead to strong brand loyalty and management pf he loop.

What is loyalty Loop?

Now markers or the brand manager needs to understand the transition of the consumer purchase journey in the digital world. In conventional setting a customer’s purchase journey starts with Awareness, movers to consideration and then decision to buy. The chain remains consistent and each time, the brand required to start the process from scratch. This has been ineffective, since In the meantime, the consumers are attracted by other brands.In order to overcome the issue and develop a new model for digital medium, Mckinsey developed the loyalty lop within the old purchase journey.H explained instead of starting the process from scratch,brands should develop a loyalty loop that eliminates the need to repeat the cycle and instead of going back to awareness phase again develop bond with company on the basis of strain brand engagement that could be derived from brand advocacy and brand enjoyment. Only this way, the brands can maintain the position in the digital as well in the physical market.The marketers needs to understand the power of digital and has to harvest that power into the brand to develop strong market position customer loyalty.

The benefits of managing the loyalty loop is, first it covers the bard from the surgical strike from other brands o the customer, second, it reduces the cost of developing the brand strategy over and over again for same customers, thus leading to high cost and low conversion.Thirdly, it allows the brand to harness the power of digital and innovation into the brand sustainable strategy, since the paradigm of market is shifting towards technology and digital medium.

Micro-Moments

We all know google has been working on customer purchase journey to understand what triggers the shopping instinct in the consumer and hence named it as micro-moments.Now what is micro-moments? As the name suggests, these are the small moments and instincts that triggers the purchase in tension in the consumer and the brands needs to locate and synchronize themselves with the customer moment sin order to develop the purchase journey. Google has divided the component of purchase journey into three factor.

  1. Be there
  2. Be useful
  3. Be Quick

These three factors can make or break the business model of the brand in the digital world if implemented correctly. Also, the understanding of micro-moments offers the company the competitive advantage over the competitors which lag or doesn’t implement the strategy of micro-, moments.

Be There:

The power of digital world has spread and plunged so deeply into the consumer mind that forever small thing, people tend to google it.Google has capitalized the patterns for the brand that asks the brands to be present in the particular domain the customer searches for. In doing some, the brands needs to choose such keywords that ranks them up in the search engine and also through google AdSense. The overall concept of be there is, a bard should be in the category, ranking in top of search engine, to develop customer consideration and conversions.

For example: if today I see an orange shoes that attracted me, I would simple search for orang shoes by writing orange shoes. Now the brand that sells the orange shoes must appears in top ranking of google. This will lad to effective conversion and sales increase.

Be Useful

Many times, the brands fails to engage the customer with the brand leading to customer flight t other bands that offers a use of the products.We all know, many times customer don’t know what they want until they are exposed to such brand with the use. The concept of be useful details that now brand needs to build extensive brand building strategy in which showing the use of the brand is the most effect way to keep the customers intact, captivated and engaged with brand.

Example: if today I buy the dumbbells from Fitnesssugar.com and failed to incorporate that in exercise, the effective brand building technique will be, the tutorial by fitnesssugar.com that incorporates the use of dumbbells into the workout. This way a brand can keep the customer intact with the offerings, leading to brand building.

Be Quick

The world is converging and so the buying behaviors of the customer. According to the new customer analyst, consumer purchase most of the product while on the go. This has made the brands to make them selves efficient enough so to incorporate the customer buying behavior effectively.Be quick mostly refers to the speed of the websites in digital context. We know friction cause the customer to clear the website and move to other website, hence the speed and precision are the key to trigger the customer purchase decision

Example: Amazon noticed the loading sopped to be a patient factor for low conversion, it reduced the page speed to 3.2 seconds which increased the sales by 45% in a month. This depicts the impact of efficient quick process on the consumer purchase decision.

All in all, the brands I current age need in the digital platform, needs to develop such strategy that sustains their customer ratio.It is because, since too many bard are entering the market, making market sutured, it is important to keep the market share chunk safe from the surgical strikers of other brands. In doing so, a two way relationship between bran and customers needs to be developed, since one way relation has turned out to be outdated.Secondly, the brands needs to manage the customer loyalty through gamification hat either addresses brand enjoyment part or brand building advocacy part.This way the brand can sustain their position in the market with reduced risk of losses due to increased competition.

Takeaways

  1. Develop the brand loyalty loop in order to engage the customer with the brand in digital world. This will reduce the cost of developing a new strategy every time, and also wills sustain the sales graph.
  2. Understand the moments in the customer purchase trajectory and capitalize the micro-, moments to gain the competitive advantage in market, and hold the market share and customer loyalty effectively.
  3. Gamification is a new mechanism that keeps the brand alive, active, and engaging and enjoying which are the keys to develop brand building techniques. In order to keep the brand I top of mind of the customer, it is important that the marketers incorporates the technique of gamification into the brand that could lead the effective management of the loyalty loop, hence retaining the customer loyalty with the brand In the long run.

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