Rajat Paharia launched the gamification industry in 2007 with the founding of Bunchball. Now, he’s taking back the word “loyalty” to actually mean something to marketers, customers, employers and employees. His book, Loyalty 3.0: How to Revolutionize Customer and Employee Engagement with Big Data and Gamification, reveals the technology, techniques and philosophy used to create true loyalty and generate a sustainable competitive advantage.
Evolution of Loyalty
In the business context, loyalty gives people a compelling reason to stick with your business and resist competitive offers. The first version of loyalty programs (loyalty 1.0) originated as points and rewards systems used to motivate customers, from frequent flyer miles to “buy ten get one free” punch cards. Loyalty 1.0 programs are purely transactional and fail to generate lasting loyalty.
Loyalty 2.0 also targeted only customers, using segmentation and personalization with a focus on direct mail and email campaigns. Data played a bigger role, as businesses took what they learned about customers and used it to speak to their interests. However, consumers have been overwhelmed by offers and noise. As a result, response rates have plummeted.
Using the latest motivation research, big data, and gamification technology, Loyalty 3.0 gives you the engine to drive engagement and true loyalty to your business among your customers as well as your employees and partners.
Motivation Drives Engagement
Keeping customers or employees interested and committed to your program requires a deep understanding of what compels and motivates human behavior. Social science research provides powerful insights into what causes people do to things or not do them. Tapping into that research, Loyalty 3.0 strategies target key motivators that compel people to action and create stronger engagement and true loyalty.
Big Data Supercharges Motivation Techniques
Technology permeates our lives. Every interaction generates a plethora of data to be captured, organized, and analyzed, offering true insight into what people really do and when they do it. This “big data” enables businesses to know their customers, employees, and partners in unprecedented ways. And, smart businesses use this data to engage and motivate their constituents in ways not previously possible.
Gamification Powers Loyalty 3.0 Programs
By giving your audience goals to work toward, real-time feedback as they progress, rewards for their achievements and a community of people to compete and collaborate with, you can motivate and drive high value behavior and true loyalty. This methodology is called gamification, and Gartner estimates that by 2015, 40% of Fortune 1000 companies will use it as their primary means to influence behavior.
The Promise of Loyalty 3.0
Loyalty 3.0 marries interaction design, psychology, and data analysis to enable personalized challenges, social competition, group collaboration, and meaningful rewards that truly motivate and engage. This leads to more sales, stronger collaboration, better ROI, deeper loyalty, higher customer satisfaction and more. About Bunchball