Chapter Four - Gamification: The Engine of Loyalty 3.0.

This week, I read chapter four of "Loyalty 3.0” (Paharia, 2013) by Rajat Paharia. Chapter four is titled "Gamification: The Engine of Loyalty 3.0".  I love how the chapter starts off by giving us an idea of what gamification is. Paharia states that “If motivation and big data had a love child, its name would be gamification.” (Paharia, 2013, p.65).

According to a blog by Spinfy, "Gamified content increases motivation and keeps customers engaged, which leads to increased brand loyalty. It also establishes your company as a business that cares for and appreciates customers' loyalty." (Bullock, 2024). Overall, is a great tool for your brand/company. It enhances your brand's engagement and allows your brand to connect with your audience on a deeper level. Gamification also thrives on the use of intrinsic motivators  In this blog, we will dive deeper into the idea of these intrinsic motivators and also talk about some brands that utilize gamification well.

When you use an intrinsic motivator you can motivate, engage, and connect with your audience. The first is "Autonomy: I control." (Paharia, 2013, p.69). Consumers thrive on the idea of them having control of their life, purchases, etc. The next two are "Mastery: I improve" and "Progress: I achieve"(Paharia, 2013, p.69-70). When your brand offers challenges/badges, consumers are able to feel the sense that I'm improving and accomplishing the goals that are in front of me. Next up is "Purpose: I make a difference" (Paharia, 2013, p.70). Consumers love it when they have a purpose and reason to make a difference with their actions. The last one is "Social Interaction: I connect with others." (Paharia, 2013, p.70). Consumers love to have the opportunity to feel apart of something with a community around them.

Many brands utilize the tool of gamification. One brand that does it well is Duolingo. Duolingo does a great job at getting you motivated and encouraged to keep a streak with the app and come back each day to expand your knowledge in a foreign language. Another brand is The Nike Run Club app. In this app, Nike utilizes a streak motivation just like Duolingo. They also offer different awards and badges that you can collect from completing challenges. Along with this they also offer personalized workouts and allow you to add friends on the app. Another brand that showcases gamification well is Starbucks' Reward Program. With the reward program, you can collect stars with each purchase, once you have enough stars you can use them for a discount or a free item. Starbucks will also send out challenges at random times with messages like "double stars today if you purchase a ______________." And the blank would be filled with a drink that you regularly get, making it a personalized reward/mission.

In conclusion, gamification is a great way to grow and enhance your brand with consumers. It also is a great tool to use to grow loyalty with your audience. When they feel a personal connection with a brand, which is what gamification does, they are more likely to keep coming back to support them time and time again.

Well, that's all for this chapter. See you next time!

Word Count: 528

References:

Bullock, M. (2024, March 11). Why Gamification is Important & Its Benefits. Spinify. https://spinify.com/blog/why-gamification-is-important/#:~:text=Gamified%20content%20increases%20motivation%20and,gamification%20to%20increase%20brand%20loyalty.

Rajat Paharia. (2013). Loyalty 3.0 : how big data and gamification are revolutionizing customer and employee engagement. Mcgraw-Hill Education.