The wine example

Bonus programmes have
existed for at least 100 years. And they haven’t really changed since then.

Gamification
for retail
loyalty

The basic mechanics until today: Buy something and you get points. Later you can exchange them for something.

 

„Pay 20 of your reward points and you get a bottle for free.“

While reward programs like this rely on extrinsic motivation, they fall short in creating true loyalty.
Bribery can’t buy loyalty!

As it is easy for everyone to offer such a reward program nowadays, the offer of rewards for shopping is, of course, no longer a differentiating factor.

In games we are chasing out better selves. When we are intrinsisc motivated to do something it happens most often in situations where we are voluntarily trying to overcome unnecessary obstacles.

 

This situations are mostly called playing games, doing sports, performing your hobby.

achievement-1296732

This is where
Gamification
changes the game
for everyone.

Growth Gamification

Ok, so how does a loyalty program
for retail looks like
if Growth Gamification is applied to it?

But as gamification is, unfortunately, also mainly reduced to simple reward programs…

We call this step the Triple-R-Combo: „Reframe Rewards as Resources:

Instead of giving a reward for desired activities, such as purchasing, we exchange this reward for resources.

Instead of giving a reward for desired activities, such as purchasing, ….

… we exchange rewards for resources. In particular: resources that you proved to be able to handle.

In the context of a customer loyalty programme for a wine merchant, this can mean that a wine becomes a resource that helps the customer to become a better wine connoisseur.

The customer is offered a simple wine to start with, with a clear, voluntary task to decide whether he/she wants Z. For example, whether he can taste the light peach note in the wine.

The wine you have just acquired thus becomes a potential resource for a – feasible – entry into the world of wines. After all, all of a sudden, everyone seems to be a connoisseur over a glass of wine…

This way we are able to solve two challenges:

1. we change the focus from looking back (a reward for past behaviour) to looking forward (what can I do with the resource now?) and
2. succeeds in focusing on the activity itself (how do I use the resource?), thus focusing on the interaction or action of the customer himself, and not only on the money transaction at the cash desk, where you get the points when it’s all over.

Short introduction to Triple-R-Combo by Roman Rackwitz

Step 1:

The first thing to do is to get rid of the so disastrous idea of reward, or bribery as we call it. Only in this way can we escape the old trap of extrinsic motivation!

…we had to develop it further to be able to fix the shortcomings of the already 100 years old reward programs.

As a result of this improvement we got:

Because research shows that the key to motivation is meaningful progress that matters to you, Growth Gamification Design is focused 100% to let the people involved experience a personal Path to Mastery.

It is a design dedicated to make an actual activity more desirable instead of relying on rewards to compensate for an unengaging activity. 

Who needs a reward after all, when you are being satisfied already by doing what you are doing? 

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