5 Best Practices for Implementing Gamification

KFC has taken an innovative approach with its loyalty program “KFC Rewards Arcade.” Instead of relying on points, the program offers a digital gaming experience through the KFC app: participants can play in an engaging 3D arcade and win special menu items that can be redeemed both in-store and via Click-and-Collect.

KFC also excites users with time-limited challenges like quizzes, where additional bonuses can be won. These surprises generate high enthusiasm and strengthen customer loyalty. The program has shown impressive results: 70 percent of participants recommend it, and the number of app downloads has increased by 53 percent since its launch.

Learn more about how quizzes and other interactive content formats boost engagement here.

Lidl Plus, the supermarket chain's digital bonus program, not only serves as a practical shopping assistant but also integrates gamification elements that make the shopping experience more exciting. Participants can achieve different discount levels or win additional discounts by scratching off digital scratch cards.

These scratch cards are often time-limited, adding an extra element of suspense. When scratching off a card, participants can win discounts on specific products. The app also allows users to track their spending at Lidl, see their current discount level, and how much more is needed to reach the next level. Rewards include free products such as desserts or other exclusive offers.

Even premium brands like Estée Lauder use gamification to introduce their products in a playful way. During the launch of the “Fast Midnight Repair” serum, the brand moved away from traditional advertising disclaimers and instead incorporated gamification elements as part of the “ANRcade” campaign.

The ANRcade experience begins with a virtual tour through the history of the Advanced Night Repair product, dating back to 1982. After a flight through a nighttime cityscape, participants enter a dome-like arena. Here, they can choose from four games—“Beauty Bounce,” “Smooth Satisfaction,” “Repair Racer,” and “Serum Quest”—which allow them to experience the product’s use in a playful manner. Each game ends with the opportunity to learn more about the product’s benefits.

A well-known example of successful user engagement is Duolingo. The learning app incorporates gamification elements at nearly every step of the user journey and has established itself as a leading educational app with over 42 million monthly active users. Duolingo uses various playful elements, such as performance dashboards that display progress and daily goals, to keep users motivated. Additionally, users can earn in-app currency called Lingots through activities, which can be used to unlock additional features like power-ups.

While short-term user engagement is relatively easy to achieve, progressing in learning a new language takes weeks or even months. Therefore, it is crucial that users stay motivated in the long term to reach their learning goals. Gamification at Duolingo plays a central role in maintaining this long-term motivation.

This approach has been highly successful for Duolingo: the churn rate (defined as the percentage of users who opened the app in one month but did not use it again the following month) has significantly decreased - from around 47 percent in mid-2020 to about 37 percent in early 2023.

Another example of successful gamification is Virgin’s treasure hunt for the launch of the Virgin Red App. Virgin hid over a million virtual coins on their websites under the theme “V marks the spot.” Customers earned points by entering the codes from the virtual coins, with the exact points revealed only after entry, adding an extra layer of excitement. These points unlocked access to secret treasure chests with exclusive sweepstakes and offers.

The campaign garnered significant attention in 2016, with the grand prize being a trip to Necker Island for a real-life treasure hunt. The Virgin Red App used gamification not only to engage customers but also strategically for cross-selling, encouraging customers already using one Virgin brand to explore and engage with other Virgin brands.

The best practices presented illustrate how versatile and effective gamification can be in the realm of customer loyalty. Companies like KFC, Lidl, Estée Lauder, Duolingo, and Virgin use playful elements to boost customer engagement and create unique brand experiences. Gamification not only enhances customer loyalty but also incentivizes the use of apps and digital platforms, leading to increased brand loyalty and revenue growth in the long term. Companies that implement creative approaches like these into their customer loyalty strategy can clearly stand out from the competition and build a strong, loyal customer base.

We are happy to advise you on your individual opportunities and the implementation of loyalty programs that suit your company and target audience.