Loyalty programmes strive to be a brand’s key driver of lasting customer relationships.
But the truth is that most are struggling for success.
For every successful loyalty programme, twelve others fail, says Playable, the gamification platform for marketers.
The impact is clear: wasted potential, budget drain, and a serious hit to customer trust.
So where are brands going wrong?
Two common mistakes most loyalty programmes make the same two errors.
They only reward spending.
The typical points-for-purchase model assumes that loyalty can be bought.
But loyalty is more than that; it’s not just about transactions.
It’s about emotion.
And interactions.
Consumers want to feel recognised, understood, and appreciated.
Without that emotional connection, your programme is just another card in a crowded wallet.
They do not personalise.
Whilst 70% of consumers say they engage more with loyalty programmes that personalise their marketing efforts, fewer than 25% of programmes offer any kind of personalised experience.
In a world full of data-led business and advancing technology, this lack of relevance is a hugely missed opportunity.
Despite these challenges, loyalty programmes remain one of the most effective tools to drive revenue growth.
Harvard Business Review reports that just a 5% increase in customer retention can boost profits by 25% to 95%.
Existing customers are also 50% more likely to try new products and spend 31% more than new customers.
Yet, the average customer belongs to more than ten loyalty programmes, many of which fail to deliver meaningful value.
Savvy brands must do more than simply launch a basic loyalty programme; they must design a strategic programme that truly engages their customers to drive tangible success.
This is where marketing gamification comes in.
By incorporating game mechanics and the power of play, brands can transform loyalty programmes into dynamic and engaging strategies that truly impact long-lasting relationships.
Gamification, when delivered strategically, solves both the spend-only and personalisation problems by:
Rewarding engagement, not just spend.
Customers can earn rewards for a variety of actions, opening an email newsletter, interacting with your app, referring friends, or engaging with new products, all through gamified campaigns.
This broadens the pathway to engagement and fosters a deeper emotional connection.
Creating personalised, dynamic experiences.
Proactive gamification campaigns can be a great way to gather valuable insights into your customers’ preferences and behaviours.
This data is zero, and first-party, directly and voluntarily provided by customers, not inferred or sourced from third parties.
As a result, it’s both high-quality and actionable, making it ideal for powering effective, personalised marketing strategies.
True loyalty isn’t created in a single moment, it’s built over time, across a series of meaningful interactions.
To drive long-term engagement, brands need to think in terms of a full loyalty journey, not a single transaction or sign-in.
Gamification can play a crucial role in shaping that journey from the very first touchpoint.
It begins at acquisition: interactive campaigns can attract new members and capture marketing permissions in a value-driven way.
Imagine an exciting scratch-card sign-up experience where new users reveal a welcome reward – anything from a discount, to bonus points or exclusive access to new products – simply for joining the programme.
From there, gamified experiences across email newsletters, apps, or loyalty schemes can keep members engaged and coming back.
Think monthly trivia challenges with bonus points for correct answers, in-app spin-to-win rewards after every purchase, or a product recommender to encourage the path to purchase.
Over time, these touchpoints help build rich customer profiles, enabling brands to deliver more personalised rewards and experiences.
Whether that’s tailored offers, exclusive games for top customers, or even a loyalty advent calendar that truly thanks your best customers with an element of surprise & delight in the prizes.
At every step, acquisition, engagement and retention, gamification rewards attention and interaction, not just transactions.
And that’s what lasting loyalty is really made of.