loyalty marketing via online gaming

Metzner | Schneider Associateswww.metzner-schneider.com

April 11, 2023 -

Playing Games, Building Loyalty

Gaming within the context of loyalty can mean many things ranging from the literal (loyalty programs for casinos) to the promotional (next generation sweepstakes, contests, collection games) to the emerging (geo-check-in or virtual community games). Which to use and when to use them need to be evaluated in the broader context of your overall goals for engagement and data capture.

To review the primary types of gaming in the market:

Type of game Best uses Who uses itSweepstakes /drawings /collection games Entries based on

purchases Entries based on photos,

videos, product reviews Entries based on social

media (geo-check-in, Facebook, Twitter, etc.)

Short term acquisition builder, especially for CPG or OEMs who do not control selling channel

Bring attention to an event or product change

Create friendly context to gather profile information e.g. back to school sweeps, baby registry, etc.

Broadly used in retail, quick serve, and CPG. Brands with significant results: McDonald’s Monopoly Gap Casting Call Doritos Superbowl Ad Sears Billion Points, Baby

Me, Smarty Points, etc. Coke SCVNGR promotion

Games online or mobile apps Create engagement with product features and benefits.

Keep brand presence top of mindNote: Game refresh or new game needed every 2-6 months

Wrigley’s Candystand game portal

Milk Council United Economy Plus

Virtual rewards /avatars /badging /leaderboards

Provide context for engaging with product information or upcoming product releases

Reward writing product reviews

Entertainment programs: WB Insider Rewards Disney Movie Rewards NBC FanIt

Geo-checkin or POS instant win

Reward store or site visit Encourage incremental visit

(unproven)

Best Buy & American Eagle via Shopkick

Intercontinental & Virgin America via TopGuest

K-mart K’Ching Borders via Google &

Meetup Gap via Facebook Places

Tie-in to independent game platforms such as Farmville

Leverage broader audiences of established platforms

Brand positioning for hipster demographic

7-11 tie-in to Mafia Wars and Farmville

Socially conscious portals Associating brand with social concerns or community issues

Causeworld Pepsi Refresh

6620 Gaston Avenue, Dallas, Texas 75214 214.827-3988


April 11, 2023 -

The brands that are beginning to do it right (Starbucks and Starwood, Hardee’s and Carl’s Jr.) create a mobile app where the fundamental underpinning is loyalty – the goal is to build engagement into the app (convenience, utility, entertainment) so that it drives sustained usage by the consumer. Leveraging QR codes can be a powerful play to reach the target demographic and allow for many cool things to be done (enhance store experience, facilitate product search and recommendations, gain loyalty credit) that incorporate a game mentality within the app itself.

There are obvious worst practices where the game content or faulty execution detract from the brand message or outright alienate an already skeptical generation of shoppers. The not so obvious worst practices are the many games that have very few participants due to a lack of marketing support—Pepsi Refresh relies on significant above the line media support. The point is that one needs to invest in awareness for the game as well as awareness for your brand.

Maintaining currency becomes a business unto itself—resources for regular refreshes for games and evaluation of emerging platforms need to be built into program management. The cycle time has decreased dramatically—where traditional loyalty programs refresh every 3-6 years, game refreshes need to be in market every 3-6 months.

One of the things to keep in mind with gaming is that an ongoing loyalty program tends to have higher penetration of your customer base and collect more in-depth customer data. In Sears’ recent sweepstakes, “What would you do with 1 billion points?”, customers uploaded almost 50,000 video entries, which received just under 500,000 votes. (Please note that these numbers were publically available from the sweepstakes website which is why we can share them.) That is, by a factor of 10, the largest video upload contest. However, the results pale compared to the growth in their loyalty program membership from POS enrollments during the same period.

And while a sweepstakes can gather many email addresses very quickly, customers typically volunteer full postal addresses and phone numbers as well as contact permissions to join a loyalty program. Some programs capture gender, birth year and other preferences at time of enrollment as well.

In the end, games need to be evaluated in terms of their ability to stimulate the desired behaviors that drive ROI–participation with the game does not itself mean engagement with your brand or purchase of your merchandise.

If gaming tactics attract so many fewer participants and have such risks, why do them? Because when well-designed, they keep a program fresh, create new venues for engagement, and can jump start enrollment for new programs or newly identified customer segments. Games provide opportunities for brands to reward group shopping behavior or online browsing, drive product reviews, and introduce new products or locations.

Gaming tactics can be very effective when used appropriately and should be integrated into a larger customer engagement framework with their design

based on customer insight gained from research and data analytics.



April 11, 2023 -

Gaming tactics successfully driving loyalty

These screen caps show how some other industry leading brands are using games to enhance their program members’ experience and drive loyal behavior.

WB Insider Rewards: Warner Bros. wants to identify and reward valuable behaviors even when they don’t involve an immediate purchase. WB Insider Rewards created a platform to leverage across titles for games, sweepstakes and digital content. The program rewards purchases points and also gives credit for playing games online, posting reviews, viewing trailers and other engaging activities.

Kmart K’Ching: K’Ching is an instant reward program implemented through the existing Kmart POS system where rewards range from home makeovers to a free soft drink. The program, which is one benefit of the larger Shop Your Way Rewards program, created a reason for Kmart cash customers to self-identify across weekly purchases. The program is refreshed at least quarterly and even monthly which maintains both member interest and keeps participation by merchants and featured vendors high.

Sears Sweepstakes—Smarty Points, Baby Me Points, Pack Up the Points Sweepstakes: Sweeps and games can be deployed in a targeted strategy; each of these sweepstakes was built to create engagement for a target segment at a key moment in their lifecycle when they are open to purchasing specific products.

Smarty Points for back to school children’s apparel, footwear and school supplies

Baby Me Points to gain visibility for the Baby Registry6620 Gaston Avenue, Dallas, Texas 75214 214.827-3988


April 11, 2023 -

Pack Up the Points targeted movers for home services and Kenmore appliances

As the lines between gaming, marketing and customer interaction continue to blur, marketers continue to explore creative new ways to leverage the engagement games can drive in ways that produce measurable ROI and reinforce profitable, loyal customer behaviors. Games are rapidly becoming an innovative tool in the kit of tactics available to loyalty marketers.


loyalty marketing via online gaming

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