The retail industry is continuously evolving, and customer expectations are riding a high wave of change. What once was a straightforward transaction—a customer walks into a store, buys a product, and leaves—has now transformed into an engaging and personalized interaction.
One strategy that has gained popularity in retail marketing is gamification.
Gamification applies game design principles and mechanics to non-gaming contexts. It makes tasks or activities more enjoyable and engaging. Gamification can increase retail sales and keep loyal customers coming for more. It creates a fun and immersive shopping experience while building customer loyalty through rewards and incentives for continued engagement.
Below are five ingenious ways retail brands use gamification to level up their customer experience and drive sales.
What is gamification in retail?
Gamification in retail refers to the use of gaming elements to make the shopping experience more enjoyable, interactive, and rewarding. It injects fun and excitement into the shopping journey, making it more than a transactional activity.
Retailers achieve this through challenges, quizzes, loyalty programs, interactive displays, or in-store competitions. The goal is to tap into customers’ natural inclination for competition, achievement, and fun to enhance their interactions with the brand. This, in turn, can lead to increased customer engagement and brand loyalty, and ultimately, boost sales.
What are the benefits of gamification in a retail setting?
The global gamification market grew from $14.87 billion in 2022 to $18.63 billion in 2023 and is projected to hit $46.44 billion in 2027. The upsurge in popularity is no surprise, as gamification offers numerous benefits for retailers, including:
Increased customer engagement
Introducing gamification into the retail experience breathes fun and interactive elements into what could otherwise be mundane shopping routines.
One effective tactic is the deployment of in-store challenges. A retailer might set up a scavenger hunt within its store, prompting customers to find and scan QR Codes hidden among products to win vouchers or free items. This makes shopping an exciting adventure and encourages exploration of the entire store, potentially boosting sales across different departments.
Digital rewards programs integrate gamification seamlessly into every purchase. By creating a points system where customers earn rewards for various activities—such as making a purchase, sharing content on social media, or referring friends—retailers incentivize ongoing engagement.
Customers are motivated to interact with the brand regularly to “level up” their rewards status, unlocking exclusive deals or benefits. This approach rewards loyal customers and aligns with customers’ affinity for achievement and recognition, similar to advancing levels in a video game.
Better customer retention
Acquiring a new customer can cost 5–25 times more than retaining an existing one. Rewarding customers for their purchases and interactions with gamified loyalty programs can significantly increase customer retention rates.
Moreover, gamification creates an emotional connection between the customer and the brand. This emotional bond forged through enjoyable experiences can lead to repeat visits, prolonged loyalty, and advocacy.
Sales and revenue growth
Gamification leverages customers’ competitive nature to drive sales and revenue growth. Offering rewards and incentives for completing specific game objectives motivates customers to make purchases to progress in the game and unlock rewards. Examples of how a retailer can incentivize customers to make purchases through gamification include:
- Offering a discount on a customer’s next purchase after they complete a certain number of purchases or spend a certain amount of money.
- Implementing a “spin to win” wheel at checkout where customers can win discounts or free items with each purchase.
- Using a mobile app where customers can scan products to receive points, and as they accumulate points, they can unlock exclusive discounts and rewards.
These gamification strategies often lead to higher order values and more transactions. They directly boost sales and revenue growth for retailers.
Improved customer data collection
With each interaction within a gamified experience, retailers can gather insights into customer behavior, preferences, and interests. This helps them better understand their target audience, improve their products and services, and create personalized marketing campaigns.
For instance, tracking which challenges or activities customers engage with the most can provide valuable information on their interests and buying patterns. Retailers can use this data to tailor marketing efforts and create targeted promotions that resonate with their customers.
More competitive in the market
Innovative customer experiences are no longer a nice-to-have in today’s crowded market but a crucial aspect of a successful retail marketing strategy. Using gamification in the retail experience creates a unique and engaging shopping experience that differentiates a brand from the competition.
Customers are more likely to remember and return to a store that offers an enjoyable and interactive experience than one with a mundane, traditional shopping experience. This competitive advantage can help you attract new customers and retain existing ones, leading to increased market share and profitability.
Gamification also positions a retail brand as innovative and forward-thinking, appealing to modern consumers who value technology and entertainment in their shopping experiences. This positive brand image can increase brand loyalty and advocacy, further setting the retail business apart.
5 excellent examples of gamification used in retail
Experimenting with gamification in retail can seem daunting, but many successful retailers have implemented it into their strategies with great success. Here are five examples of how retailers have used gamification to boost user engagement, retention, and revenue:
Note: The brands discussed below were found during our online research for this article.
1. Point systems for purchases
The point system is one of retail’s most widely used gamification strategies. Every purchase earns customers points that can be redeemed for discounts or free products, transforming a sale into progress toward a rewarding outcome.
One successful implementation of this strategy is the Bath & Body Works loyalty program. Customers earn 10 points for every dollar spent, and as they accumulate points, they can redeem them for rewards such as free products and discounts. Bath & Body Works’ loyalty program has over 38 million members, and about three-quarters of the retailer’s U.S. sales result from the loyalty program.
2. Augmented reality (AR) treasure hunts
AR treasure hunts turn an otherwise ordinary—and sometimes tedious—shopping trip into an exciting and interactive experience. Retailers can use AR technology to create virtual treasure hunts within their stores, where customers can use their smartphones to search for and collect virtual items hidden throughout the store. These items could be related to specific products or promotions, encouraging customers to explore different areas of the store and engage with products they may not have noticed otherwise.
IKEA implemented this strategy by creating an AR game where customers could collect virtual furniture pieces and use them to design their virtual room. The game allowed customers to visualize how furniture would look in their home, driving traffic to the store and increasing sales. It also provided valuable data on customer preferences and interests, allowing IKEA to tailor its products and marketing efforts accordingly.
IKEA also unveiled its Place App, which uses AR to let customers virtually place furniture in their homes, influencing purchasing decisions and improving the user experience.
3. Leaderboards for top shoppers
Leaderboards tap into customers’ competitive nature and desire for achievement. They encourage customers to compete with each other for a top spot on the leaderboard by incentivizing them with rewards, recognition, or exclusive benefits.
Starbucks is a prime example of a retailer successfully using leaderboards to drive customer engagement and loyalty. Through its Starbucks Rewards program, customers collect stars for each purchase they make, which they can redeem for free beverages or food. It also has time-sensitive offers such as double star days, encouraging customers to make more purchases to earn stars faster.
4. Social sharing challenges
Social sharing challenges tap into the power of social media and user-generated content to promote a retailer’s brand and products. Retailers can create challenges encouraging customers to share their shopping experiences, photos, or reviews on social media platforms in exchange for rewards or discounts. This increases the retailer’s online presence and creates a buzz around its brand, influencing potential customers to visit its store or website.
One example is the retailer Lululemon’s #thesweatlife challenge, which encouraged customers to share photos of themselves wearing Lululemon products while doing physical activities on social media.
Customers who participated and tagged Lululemon had the opportunity to win free products and exclusive experiences from the brand in a drawing. The result? Thousands of user-generated content pieces and a sense of community among Lululemon’s customers that increased brand loyalty and in-store visits.
5. Interactive product discovery experiences
Interactive displays or digital kiosks offer customers an engaging and interactive experience to discover products in a fun and educational way. These displays offer a hands-on experience for customers to explore and learn about products through touchscreens, videos, and AR.
Sephora is an example of a retailer utilizing interactive technology to enhance product engagement. Its Virtual Artist feature uses AR technology to allow customers to try makeup products virtually, get personalized recommendations, and learn more about different products through videos and tutorials.
This makes the shopping experience more fun and interactive and educates customers about products they may not have been aware of before, increasing product discovery and potentially leading to a purchase.
How you can enhance retail gamification with Bitly
Retailers can enhance their gamification efforts using Bitly. Bitly offers several tools that help retailers track, analyze, and optimize their gamification campaigns. Let’s explore some ways that Bitly can enhance retail gamification efforts.
Simplify participation with short, memorable links
Bitly’s URL shortener allows retailers to create short, branded links that are easy for customers to remember and use. You can integrate these links into games, contests, and challenges to simplify user participation and improve the customer experience.
For instance, a retailer running an online scavenger hunt could use Bitly to create short links that lead participants to different clues or challenges on their website. This eliminates the need for customers to type in long, complicated URLs, increasing participation and making the process more seamless and enjoyable.
Use Bitly to track engagement and performance
Bitly Analytics capabilities allow retailers to track the engagement and performance of their gamification campaigns. By using short links or QR Codes, retailers can track how many customers participate in their games, contests, or challenges. This data provides valuable insights into which aspects of the gamification strategy are most effective and which may need adjustment.
If a game or challenge receives a low number of clicks, retailers can reevaluate its design or rewards to make it more appealing to customers. On the other hand, if a particular game or challenge receives a high number of clicks and engagement, retailers can replicate its elements in future campaigns to drive further success.
Enhance your related marketing campaigns
You can use Bitly links and QR Codes in marketing campaigns to activate your next event by promoting gamified activities in retail. Bitly’s powerful URL shortener allows retailers to create memorable connections between their marketing efforts and gamified activities, making it easier for customers to engage and participate.
Retailers can strategically place Bitly links or QR Codes in email marketing campaigns, social media posts, and other digital channels to direct traffic to their gamified features on their website or app. This helps drive traffic to the gamified activities, increases brand exposure, and encourages customers to explore more of the retailer’s offerings.
Bitly Analytics can also track the performance of these links and codes. They show which marketing channels are best at driving engagement and participation. This lets retailers focus on those channels for future campaigns.
Seek new boundaries in customer engagement by gamifying retail experiences
The above gamification examples showcase the potential for retailers to enhance their customers’ overall retail experience through interactive and engaging activities. Incorporating games, challenges, or rewards into retail displays or marketing campaigns can make the shopping experience more enjoyable and educational, increase product discovery, and drive sales.
With Bitly’s link management capabilities, retailers have the tools to simplify participation, track engagement and performance, and enhance their marketing efforts by seamlessly integrating gamified activities. Embrace the potential of gamification to transform your retail experience and drive business success.
Ready to add some excitement to your customer experience? Get started with Bitly to take advantage of the link management and marketing tools that make gamification simple.