Modern shopping contains more aspects than just adding products to cards and paying. If designed perfectly, it will be fun and engaging and encourage customer retention. So, omnichannel retail strategies increasingly borrow ideas from the gaming industry, coming in the form of gamification elements. Harnessing gamification in retail is not always easy, so in this article, we will take a look at the world of gamification in retail and how it increases customer loyalty.
Gamified loyalty programs
Gaming strategies in shopping are commonly identified with reward programs. They can get customers interested in what a business has to offer by mixing the fun of games with the benefits of an awards and points system.
Through loyalty programs gaming and retail stores can add game elements like tasks, goals, and badges that customers win by interacting with the brand. This helps with keeping them involved and encourages them to keep buying and returning.
Examples of gamified loyalty programs include users earning points by finishing chores, making purchases, opening new levels, finding special treats along the way, or competing with friends on leaderboards – which can later be exchanged for discounts, free items, or other perks.
Gamification is used across different industries, with the online gambling market serving as a great example of how to properly use it. Reputable online casinos such as Vulkan Vegas can also serve as an inspiration for how gamification can lead to a stellar reputation and returning customers.
Gamification elements and loyalty programs across different industry giants
To get a better idea of how successful gamified loyalty programs and reward systems work in retail sectors, here are a few examples from well-known brands.
| Corporation | Loyalty Program | Benefits |
| Starbucks | Starbucks Rewards | Users earn “Stars” for making qualifying purchases. They can later redeem Stars for benefits like free drinks or food |
| Nike | Nike Membership | Loyal users get various benefits, such as free shipping, personalised offers, and birthday discounts |
| Sephora | Sephora Beauty Insider | A three-tiered loyalty scheme that rewards users with redeemable points |
| IKEA | IKEA Family | A free loyalty program with perks such as discounts on products, access to member-only events, and early access to sales |
| Target | Target Circle | A free service where users can get 1% cashback on purchases, get personalised offers, and birthday gifts. |
AR and virtual fitting rooms
The integration of VR and AR into online shopping promises to be a big upgrade in the industry. Through it, you can try on clothes without even setting foot in a changing room. Virtual try-on experiences can help you see how certain outfits look on you.
VR and AR in shopping allow a more dynamic and engaging experience from the comfort of users’ homes. Some would even go as far as to say that a properly used VR and AR shopping experience becomes a trip where every purchase feels like an exciting and lasting achievement.
There are dozens of brands currently using these technologies for more interactive shopping, including Gucci, Nykaa, L’Oréal, BMW, and Adidas, just to name a few.
Combining various payment methods
Long gone are the days when you could just pay online with your credit and debit cards. The emergence of e-wallets, prepaid vouchers, and even cryptocurrencies has provided e-commerce businesses with a lot of options for their customers. Here is why the integration of various payment methods is important:
- Maximise conversions: By offering a diverse set of payment methods, businesses can avoid scenarios where they put off customers by only offering a limited list of payment options.
- Minimise abandoned carts: Alongside shipping fees, another reason why businesses can experience a high rate of abandoned carts is the limited range of online payment methods.
- Appeal to a wider demographic: Different types of consumers prefer different payment methods. Some would stick with the convenience and simplicity of cards, while others opt for more anonymity that is guaranteed by e-wallets like PayPal (payments with just an email address).
- Better brand perception: One of the greatest benefits of accepting numerous payment methods is the credibility it adds to a business. When a customer sees different payment options, they instantly get the impression that they are shopping at a trustworthy site.
Gamified Feedback as a Win-Win Situation
One way businesses can boost customer engagement is through gamified feedback systems. They add an element of fun to the entire shopping experience, and it makes users more likely to provide useful insights. Getting badges, different awards, competing with friends, or climbing leaderboards – all these are engaging parts that can motivate users to share ideas.
Besides gamified feedback, corporations can add incentivised reviews that reward customers for leaving good reviews or referring the site to their friends. Through this, customers will help brands spread the word about them, while getting rewards for themselves, thus creating a win-win situation.
Group Purchase Discounts
Group purchase discounts can be beneficial for both customers and businesses, and it is one of the most widespread retail tech trends in the world. For individuals, some of the primary advantages of getting group purchase discounts include:
- Big cost savings
- Access to great deals
- Turn bulk discounts into personal savings
- Buy items you couldn’t afford without group discounts
As for businesses, benefits can be quite obvious, and they include increased sales, expanding customer base, increasing brand awareness, and reducing marketing costs.
Live shopping streams
Live shopping can act as a shortcut from buyers to products, especially in an era where one-click purchases are a big trend. This retail innovation UK really took off when Instagram introduced Reels and YouTube launched Shorts.
Through them, live shopping has emerged as a great marketing strategy that is based on livestreaming. A host will present products, and viewers can simply buy them in real time.
This way, brands can interact with customers on their websites or social media channels. They can hire influencers to run these live streams, which adds even more widespread appeal.
More often than not, these “hosts” will try the products on, demonstrate how they can be used, mention their benefits, or share tips on how to get the most out of them. Viewers can also interact with hosts via live chat and ask questions or share their thoughts.
Then, somewhere around the video screen, viewers can just click on direct links, which will lead them to a site where they can buy the specific product. It is not uncommon for brands to offer discount codes that are valid only during the live stream, which adds a bit more urgency to end consumers.
Some brands that have already reaped the rewards of live streams include Kit Kat, Samsung, L’Oréal, and Nordstrom. Live streams can create a community where shoppers can see how someone who really knows the product shares insights, and if used right, there are not many gamification retail strategies better.
Challenges with gamification in the retail industry
Besides the obvious advantages of gamification strategies in retail businesses, for a more balanced overview, you must also be aware of some of the challenges such an approach is facing:
- One-size-fits-all mindset: This is one of the biggest reasons why many gamification strategies have failed in the past. With this approach, the different needs, motivations, and contexts of teams across a company are ignored, which will lead to ineffective, sometimes even disruptive, implementations of gamification.
- Individual motivations: People can be driven by different factors. Some thrive on competition, while others prefer collaboration or personal achievements. A gamification strategy cannot always be uniform, as that way, it will fail to address diverse needs, which will inherently lead to disengagement.
- Lack of clarity: Sometimes, organisations can lose themselves in the quest to make more personalised gamification elements. While creating tiered loyalty schemes, the retail gamification framework should be clean and intuitive. Overly complicated mechanics will just confuse and overwhelm customers, which can have the opposite effect.
- Integration with IT infrastructure: If a business is to implement a modern gamified loyalty program, it needs to invest in a robust, API-based tech stack. Modern API loyalty platforms can easily be integrated with businesses and their systems.
A game changer for retail – final verdict on gamification
Gamification in retail is not just a term. Instead, it is a strategy that can tap into the basic human needs for reward and respect.
‘By successfully adding game features in online retail strategies, companies can offer much more than just goods and services.’ — Jordan Conroy, Slotozilla.
Unique experiences packed with numerous rewards and offers along the way are just some of the benefits that customers can benefit from on a personal level. Whether it is getting points, reaching new levels, finishing tasks, or challenges, every step in the online shopping experience can become an exciting trip where you find just what you need.
There is a general agreement that shopping is no longer just about buying things. The modern shopper prefers to see this experience as a “game”. That way, they can engage in a dynamic world where every action is tuned to individual preferences and needs.
Gamified loyalty programs
Combining various payment methods








