7 Ways to Use Gamification in Retail Industry [With Examples]

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Mrudul

7 Ways to Use Gamification in Retail Industry

The fascination with gamification has surged remarkably in recent years. As more businesses transition online, fresh avenues for enhancing customer experiences have emerged. This has positioned gamification as a focal point for numerous brands. According to Mordor Intelligence, the gamification market could be worth $30.7 billion by 2026.

Gamification isn’t confined to digital realms alone—many brands effectively implement physical gamification tactics. However, the digital landscape has simplified the integration of gamification and gamified elements into customer interactions.

In this blog post, we will explore 7 outstanding ways to use gamification in the retail industry, detailing the strategies employed and examples. But first, let’s delve deeper into why gamification in retail is becoming indispensable for engaging and retaining customers.

What is Gamification in Retail Industry?

Let’s begin by defining gamification.

Gamification involves integrating gaming principles into business operations and is commonly understood as incorporating game-like elements into environments that typically do not feature such mechanics.

The essence of gamification lies in crafting engaging games or challenges that offer customers the chance to win rewards. It’s a versatile tool that can enhance employee training, boost customer loyalty, and improve lead generation.

In the context of retail, many stores opt to implement gamification on their websites, adding an unexpected delight for customers—the proverbial icing on the cake.

Through gamification, retailers can increase customer engagement points and gain insights into the driving forces behind their customers’ purchasing decisions. This approach is increasingly popular in both gamification in retail industry and gamification in retail stores, where it serves as a powerful strategy to enhance the shopping experience.

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Why is Gamification in Retail Important?

One key factor driving the popularity of gamification is its ability to engage with fundamental human instincts like competition and curiosity.

Gamification enables companies to introduce elements that spark these innate reactions, enhancing customer engagement in the digital space.

Interestingly, research indicates that many view online shopping not just as a necessity, but as a leisure activity and a way to unwind, similar to gaming.

Now, let’s explore some instances where businesses have successfully integrated gamification into their e-commerce strategies, demonstrating the impact of gamification in the retail industry.

7 Examples of Retail Businesses using Gamification

  1. Casper

    Casper, a renowned mattress company, has effectively utilized gamification to amplify brand awareness and loyalty through a clever advertising campaign in the New York subway. The company positioned ads featuring engaging riddles that were directly linked to the theme of rest and sleep, a clever nod to their main product line. Each riddle was designed to pique the curiosity of commuters, encouraging them to visit Casper’s website to uncover the answers.

    This approach did more than just entertain; it drove significant web traffic, introducing new potential customers to the brand. Such campaigns underscore the effectiveness of gamification in retail, particularly in creating memorable interactions that can transform a mundane commute into an interactive experience.

    The impact of this gamification strategy extended beyond immediate engagement. By compelling users to visit their website, Casper not only increased its digital footfall but also familiarized a wider audience with its products. The campaign served as a critical touchpoint in Casper’s marketing strategy, significantly enhancing brand recall and customer engagement without directly pushing for sales.

    This example serves as a benchmark for gamification in the retail industry, showcasing how strategic, game-like elements can be seamlessly integrated into marketing efforts to capture customer interest and foster lasting brand loyalty. It highlights gamification in retail stores as not just a tactic for online engagement but also an effective tool for enhancing physical advertising strategies.

  2. Pepsi

    In 2020, Pepsi launched a highly engaging AR-driven campaign featuring renowned football stars Lionel Messi, Paul Pogba, Mo Salah, and Raheem Sterling. This innovative promotion involved limited edition Pepsi cans equipped with scannable QR codes. Once scanned, these codes allowed users to engage with AR versions of these athletes on their smartphones, participating in a virtual kick-up challenge that could be shared via Instagram.

    This campaign, part of Pepsi’s broader ‘Pepsi, For the Love of It’ initiative, exemplifies the power of gamification in the retail industry. By integrating augmented reality with a social sharing aspect, Pepsi not only enhanced the shopping experience but also significantly increased online engagement and drove substantial traffic to its website. The inclusion of famous athletes added a familiar face to the campaign, increasing its appeal and effectiveness.

    Pepsi’s approach did not directly aim to increase immediate sales but was strategically designed to augment brand recognition and customer involvement, particularly among younger demographics. This method of using gamification in retail has set a precedent for how brands can creatively engage with audiences in a digitally dominated market environment.

  3. Ikea

    IKEA has solidified its reputation as a pioneer in the retail sector, especially through its innovative use of virtual reality (VR) to enhance the customer shopping experience. This strategic move involves a virtual reality showroom where customers can virtually explore and interact with furniture setups. This VR initiative is designed to mimic the engaging experience of physically walking through IKEA's well-designed showrooms, thereby bridging the gap between online shopping and in-store browsing.

    The virtual reality experience offered by IKEA allows customers to customize and visualize different furniture setups in various fabrics, colors, and styles within a virtual space. This immersive experience not only helps customers make more informed purchasing decisions but also empowers them to take on interior design projects with a clear vision of the expected outcomes. By providing a tool that customers can use at their convenience, IKEA enhances customer satisfaction and engagement.

    This VR experience has become a crucial touchpoint in IKEA’s customer interaction strategy, allowing the brand to connect with customers on a more personal level and providing a unique shopping experience that stands out in the retail industry. The success of this gamification strategy in retail, particularly in fostering customer engagement and enhancing the shopping experience, underscores the growing importance of gamification in the retail industry.

  4. Sephora

    Sephora’s innovative "Swipe it. Shop it" campaign effectively leveraged gamification to simplify the overwhelming process of choosing from a vast array of beauty products. Inspired by the user-friendly interface of the Tinder dating app, this campaign allowed customers to swipe left or right on various beauty looks, thus personalizing their shopping experience. This approach not only made shopping fun but also significantly eased the decision-making process by mimicking a game-like environment where users could engage with products in a familiar format.

    This gamification strategy proved to be a hit, particularly with millennial shoppers, who appreciated the quick and interactive way to explore products. The campaign led to increased user engagement, with noticeable upticks in browsing sessions and longer interaction times. By incorporating elements of gamification in the retail industry, Sephora not only enhanced the online shopping experience but also successfully attracted a tech-savvy audience, setting a benchmark for gamification in retail stores.

  5. Gucci

    Gucci has embraced the cutting-edge realms of NFTs and digital fashion, positioning itself as a forward-thinking leader in the luxury fashion industry. Their initiatives include creating digital avatar items and clothing for platforms like Roblox, Pokémon Go, and Zepetto—a virtual world for custom avatars and social interaction. Notably, Gucci launched the Gucci Sneaker Garage app, allowing users to design their own digital sneakers, tapping into the creativity of their consumer base.

    This move into digital fashion and gamification has opened new avenues for Gucci to engage with a younger, digitally-native audience. The inclusion of gamified elements and virtual reality experiences aligns with the growing trend of gamification in the retail industry, attracting consumers who value innovative and interactive shopping experiences.

  6. Lazada

    Lazada, a leading Singaporean ecommerce platform, exemplifies advanced gamification in the retail industry by transforming its shopping experience into an interactive game-like environment. The app integrates various gamified elements such as referral rewards, collectible vouchers, coins, daily bonuses, countdown timers, and even prize giveaways to engage users more deeply.

    A key strategy used by Lazada involves leveraging scarcity tactics for coupon redemption, which restricts the number of coupons available and motivates customers to act quickly to snatch up time-limited offers. This approach not only heightens the sense of urgency but also boosts regular interaction with the app.

    One standout feature is ‘Slash It!’, which allows customers to unlock discounts on specific items by encouraging friends to click on a personalized promotional link. This feature harnesses the power of social influence and network effects to drive sales and increase product visibility.

    By carefully calibrating its gamification strategies, Lazada steers customer behavior towards beneficial actions, rewarding continued engagement and shopping frequency with richer incentives.

  7. Subway

    Subway's "Sink a Sub" campaign, launched last year in Australia and New Zealand, cleverly gamified the customer experience by integrating a virtual sea battleground app modeled after the classic game Battleships. Instead of ships, customers would target Subway sandwiches, engaging in a playful and competitive interaction that encourages repeat visits. Each purchase of a sub and drink provided customers with a unique code to access the game, enhancing their engagement with the brand.

    The campaign effectively utilized gamification to boost brand awareness and customer interaction. Every participant was guaranteed a prize, ranging from free drink upgrades to a grand prize of $10,000, ensuring customer satisfaction regardless of their game outcome. This approach not only made the shopping experience more exciting but also significantly increased customer retention rates.

    By employing sophisticated gamification strategies, Subway was able to ensure customers returned both to the restaurants and the game multiple times, demonstrating the profound impact of gamification in the retail industry.

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Wrapping Up

In summary, gamification has emerged as a powerful tool in the retail industry, significantly enhancing customer engagement and loyalty. By adopting innovative strategies like those used by Subway, IKEa, and Lazada, retailers can create engaging, memorable experiences that drive repeat business and increase brand affinity. For those looking to leverage these benefits, 99minds offers specialized gamification solutions tailored to meet diverse marketing needs, making it an ideal partner for businesses aiming to innovate and captivate their audience effectively.

FAQs on Gamification in Retail

How do these examples of retail gamification impact customer behavior beyond immediate engagement?

Retail gamification can significantly influence long-term customer behavior, enhancing brand loyalty and driving purchase decisions. These strategies may initially captivate and engage customers, but their success in fostering lasting relationships and encouraging repeat purchases varies. Evaluating how gamification influences sustained interactions and boosts word-of-mouth can reveal its true effectiveness in nurturing meaningful connections within the gamification in retail industry.

What are the potential drawbacks or challenges associated with implementing gamification strategies in retail?

Deploying gamification in retail comes with challenges, such as aligning the tactics with the brand's core values while appealing to the intended audience. Technical issues in developing and maintaining gamified features, along with privacy and data security concerns, are notable risks. Businesses need to invest in solid systems and address these ethical concerns to successfully implement gamification strategies.

Are there specific demographic groups more responsive or resistant to gamification in retail?

Responsiveness to gamification varies across different demographic groups. Younger demographics like millennials and Gen Z might be more open to complex gamification tactics due to their familiarity with digital interactions and gaming. In contrast, older groups might prefer simpler and more intuitive gamified experiences. Tailoring gamification efforts to meet the specific preferences of various age groups can optimize engagement and effectiveness across a broad audience spectrum.