gamify your way to retail glory (and how to get there) !

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Gamify your wayto retail glory(and how to get there)!

Gamify your way to Retail Glory(and how to get there)!


01

Gamificationis appealing to a growing number

of consumers by exploiting the

core elements of desire.

“Gamification is the process of using game thinking and game mechanics to engage audiences and solve problems. Put another way, it’s about taking the best idea from games, loyalty programs and behavioral econom-ics and using them in new, exciting ways,” explains Gabe Zichermann, author and CEO of Gamification Co.

This is evidenced by the continual growth of the industry as well. The gamification market is worth more than $100 million and by 2016 is pre-dicted to rake in profits of $2.8 billion. Retailers who properly harness the power of this marketing tactic can expect a substantial increase in their bottom line. Over 47% of gamification strategies focus on consumer en-gagement with 15% targeting brand awareness and 22% revolving around brand loyalty.

Here are four ways to engage the competitive nature of consumers and enhance consumer engagement.



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02

Drive in-store trafficwith location basedmobile applications.

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ech.com

Smartphones today bring the power and experience of a personal gaming device with consumers. Apps such as Foursquare and Shopkick allow consum-ers to gamify their shopping experience by location.

Best Buy is using apps to boost in-store traffic by partnering with Shopkick to engage inactive or stagnant consumers in addition to their loyal consumer base. Shopkick provides consumers the opportunity to gain points that can be traded for physical product or other rewards. By scanning items in different Best Buy locations and completing challenges, consumers receive Kick Points, which can be redeemed for free items and discounts.

This strategy gamifies mobile, enabling retailers to lead consumers through the shopping experience from browsing to consideration and finally pur-chase.

How to leverage mobile applications: Identify which mobile apps work best with your brand and optimize them to engage previously inactive consumers. Guide consumers through an en-hanced shopping experience and offer challenges that promote cross-selling and up-selling strategies to increase basket size.

Bonus tip: Combat ‘showrooming’ and even turn it into an advantage by using mobile apps to drive in-store traffic and expand the consumer base. Offer special rewards and discounts for in-store purchases to promote brand awareness and increase basket size. Drive purchase decisions by using an optimal mix of fun, personalization and rewards.




03

Encourage uniqueopportunities throughin-store gamification

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044 Global Gamification Tactics Guaranteed to ImproveCustomer Loyalty (and How to Set Them in Motion)


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04Gamify your way to Retail Glory(and how to get there)!

While digita l retail is high and rising, in-store activity still creates exceptional opportunities for the retailer. For example, in-store customers create foot-fall that can be tracked from one department to the next. These consumers can offer one-of-a-kind instant discounts on the spot at the POS. Customers are also sometimes more willing to share information with a live sales rep than they are online, offering brands a greater opportunity to build a more complete information database that can be leveraged for sophisticated omni-channel campaigns.

Puma’s Creative Factory is just one approach that can be leveraged for either in-store gamification or e-commerce/online gamification due to its mobile compatibility. Creative Factory lets users design shoes, create different pat-terns, upload them to social media and vote on their favorite designs. By po-sitioning games such as these inside retail establishments, retailers can easily combat revenue denigration in the form of showrooming and other retail challenges.

How to leverage in-store gamification:

Understand if your products can support customizations and how this would affect your brand. Boost in-store activity by making in-store visitation a pre-requisite for competing in and completing games. Augmented reality games and creative interaction can be leveraged with large interactive screens in front of, near and inside of stores. Free-standing kiosks can be leveraged for increasing the volume of interaction in live locations.

Bonus tip: As an alternative to just offering loyalty points for purchases, of-fering bonus points when Facebook friends purchase the same items as the customer would encourage people to get their friends to shop so that they all enjoy extra benefits.




#2



Elevate the customerexperience withaugmented reality.

#3



Augmented reality enhances the customer experience by providing interac-tive activities that engage the customer on a much more personal level. Con-sumers promote your brand and invite friends to play which increases brand awareness. Offering an interactive activity can appeal to the masses while generating positive reviews about your brand.

Big brand Coca-Cola turned consumers into James Bond with their vending machine game designed to promote the James Bond 007 film Skyfall. In a cross- promotion with the film, Coke Zero set up vending machines on a train station in the UK that tasked Coke fans with the mission of rushing to a cer-tain train platform within 70 seconds.

The company placed pedestrian obstacles in the way of entrants rushing their way to the platform to win tickets. This created big buzz for Coca-Cola who saw a sales increase by 10% during the promotion.

In Hong Kong, Coca-Cola was able to launch another gamification campaign in which consumers used mobile devices to create a game which allowed consumers to “catch” bottle caps with their devices once a specific Coca-Cola commercial was aired. Consumers were then able to compete with one an-other to see who could catch the most bottle tops.

How to leverage augmented reality:Creatively cater to consumer desire to interact with your brand. Interactive games that allow a consumer to become someone else for even a brief moment can boost brand awareness and secure a larger loyalty base. Use mobile devices to enhance the augmented reality experience and cater to the consumer need for competition.

Bonus tip: For clothing retailers creating a virtual try-on room can increase both online and offline sales and reduce the amount of returns. Allow con-sumers to upload photos of themselves and try on individual items to create an entire outfit. Virtual try-on rooms promote brand awareness and create customer loyalty. Early adopters to this trend can see the maximum benefit to their bottom line based on exclusivity.




#2



Offer employeeincentives and trackperformance

#4



Gamification can be used not only to engage consumers, but also to engage employees as well. By offering incentives and rewards and allowing friendly competition between employees, retailers are able to track employee per-formance and introduce training and incentives to their sales associates. Providing an engaging and motivated workplace encourages employees to interact with consumers on a personal level.

Best Buy was voted one of the 100 Best Companies to Work For by Fortune Magazine. Best Buy uses incentives to encourage friendly competition be-tween employees and rewards the highest seller with either merchandise or other incentives. Best Buy knows that something as small as an employee lunch or big ticket items such as televisions or small appliances can have a huge impact on ROI. The company also allows separate departments to go head to head during training sessions to appeal to the competitive nature of its employees. Best Buy has worked hard to create a positive work environ-ment, and through gamifying the employee experience has in turn enhanced their customer experience.

How to leverage employee gamification: Set goals for employees and offer incentives for those who reach those goals. Offer the top seller an added incentive to promote friendly competition be-tween sales associates. During training sessions divide your store by depart-ment or create teams to create competition between groups. These groups then can motivate one another to compete against other departments.

Bonus tip: Compete against the other departments inside your company. Im-prove your company-wide rankings to create a greater impact to your ROI. The added bonus is that sales associates will gain a greater sense of pride which in turn creates an even more positive image for your store and pro-mote brand awareness and customer loyalty.



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Capillary Technologies is a leading provider of cloud-based software solutions that enable retail marketers to quickly and easily build, manage and analyze customer data to gather deep insights and personalize customer engagement across social media, mobile, e-mail, online, and in-store channels, driving a significant increase in sales and customer loyalty.

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gamify your way to retail glory (and how to get there) !

Retail

inactive consumers

stagnant consumers

guide consumers

store purchases

store customers

store activity

wayto retail gloryand

growing numberof consumers