How is Gamification now a Common Practice for Consumer Retention?

When elements used in games are used for other services, it is called Gamification. The concept of Gamification involves mechanics. Gamification in marketing is used as a strategy to retain customers.

Gamification creates a feeling that users relate to while playing games. This feeling motivates customers to stick to certain services or activities for longer. For example, a quiz or a puzzle in a cereal box can attract the children and convince them to buy again. A reward or achievement point from the gamification strategy motivates the customers to use the services repeatedly.

Customer retention is essential for increasing the lifetime value of a customer. Retaining the existing customer is very important over gaining new ones. Also, finding and convincing new customers incurs more costs. Therefore retention through Gamification helps in the reduction of marketing costs of a company.

Why are Retaining Customers Important?

Customer retention is defined as the capacity of a business measured in the time parameter. Customer retention is measured by a metric based on percentage. It answers how many customers a company can hold after a certain time. The main reason why customer retention is given much importance is as follows:

  • The cost per customer is much lower than bringing a new customer. The company has to incur more charges for finding a new customer. On average, the cost exceeds up to 25 times that of retaining.
  • Customer retention calls for incurring a very low expense per customer. Therefore, this leads to a better return on investment. About a 5% increase in customer retention can earn huge customer revenue.
  • Retaining customers comes with several advantages. Brand loyalty is one of the advantages. Positive brand loyalty helps the company to introduce other products more efficiently. The existing customer would spend more than a new customer. The current customer already has gained trust for the brand.
  • An existing customer who trusts a brand can bring new customers. They would more likely refer to it to their close people. Oral verdicts of the existing customers are effective irrespective of digital media benefits.

The Idea of Gamification

The concept of Gamification can be linked with ideas like cryptocurrency. These links can give people several money-making opportunities. This works while interacting differently with a product using an online service. This concept has promise for the development of internet technologies. Along with this, it also helps the companies to try to increase customer involvement.

To imply Gamification for customer retention, a company has to allow the following advantages.

  • Knowing the customer is very important for planning a gamification strategy.
  • Implement specific loyalty programs. Let the customers collect points which they can redeem later and gain discounts.
  • Mobile compatibility is essential at present. Smartphones are the most convenient means of connecting to the world.
  • Collaborate with different social media programs.


Through Gamification, the companies learn about lower engagement problems of the customers. Companies can make an effort to make the customers interested in products through Gamification. This also helps the customers become interested in the brand and the products. This means of customer retention also invites healthy competition among peers.

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November 12, 2022