A boomer friend recently said that Temu does online selling the way it should be done. The reason he said this is because they gamify their ecommerce experience like no other.
There's also the fact that he could get waterproof cargo pants, a pleather steering wheel cover and a tactical pencil sharpener all for $8.13... but that’s a topic for another time.
Gamify - Verb
Apply typical elements of game playing (e.g. point scoring, competition with others, rules of play) to (an activity), typically as an online marketing technique to encourage engagement with a product or service.
At its core, gamification in ecommerce is the art of integrating game mechanics like points, rewards, leaderboards, challenges and progress bars to the buying experience.
It influences the shopper’s behavior by increasing engagement which leads to more sales and greater brand loyalty.
How it Works
Gamification taps into some well known psychological effects.
1. Dopamine Loops
By completing small challenges or receiving instant rewards like discounts, badges, or points - the shopper receives a fix of dopamine. This encourages repeat action and the more they’re interacting in a way they enjoy, the more invested they become in the process and subsequently the brand.
2. Variable Rewards
With uncertain outcomes like ‘mystery discounts’ or games of chance, there is increased anticipation. This causes longer engagement and an emotional investment in the process.
3. Loss Aversion
Time-limited offers and the fear of losing things like redeemable game points causes FOMO (fear of missing out). This can have a positive effect on your TTFP (time to first purchase) and is especially valuable when you’re looking to move old stock, fast.
4. Progression & Mastery
With elements like progress bars on your store, you can appeal to the customer’s desire for completion and self improvement. This further strengthens brand engagement and leads to a feeling of accomplishment and enjoyment.
5. Social Proof & Competition
By creating an element of competition with features like leaderboards and by giving your customers the ability to share their achievements, you foster engagement through comparison and validation.
Ok, but why?
When it’s done well, gamification can directly impact the following:
Your Average Order Value (AOV)
As the simplest example, think about micro gamification elements like a free shipping threshold progress bar.
To fill the bar and get free shipping, the customer needs to add more to their cart. This increases the cart value across the board in a friendly, gamified way.
Increased Conversion Rate
You can create a sense of urgency by applying a time limit to an action.
For instance, if your customer completed a game task or achieved a milestone, the prize could have an expiry date applied to it.
Your Repeat Purchase Rate
By implemented a loyalty program on your store, you can incentivise your customers to buy from you again.
Earning points that are only redeemable on your store encourages your customers to buy again in future. A double win here is to let them earn redeemable points by recommending your products to their family and friends.
Product Discovery
Revealing new products from behind a fun interaction is a great way of presenting them to your customers. It can also "dig out" those products that your customers frequently miss or that you just need to get out the door - like stock clearance.
The sense of accomplishment felt in the reveal will trigger a positive emotional response and endear them more to your product and brand. Just be careful to not make it too hard, else your new products will remain forever hidden.
Engagement and Brand Affinity
All of the above benefits cause an increase in engagement with your brand and strengthens your reputation in their eyes.
Customers will want to “unlock” perks by playing, but only if the incentive is strong enough and the process is fun.
What not to do
As rosy as this all sounds, it can also backfire if not done properly.
Gimmicky or manipulative gamification through poor design or overuse can lead to damage in brand trust and credibility. This is especially important for luxury and purpose driven brands.
Low-quality UX (user experience) that is clunky, confusing or glitchy will frustrate your customers and damage your brand’s reputation.
If your brand doesn’t lend itself well to a certain type of gamification it may do more harm than good. For instance a high-end luxury brand should probably avoid the previously ubiquitous spinning wheel gimmick.
by Ross Allchorn
Game mechanics that are too hard will frustrate people, and conversely if too easy, it’ll feel deceptive or “too good to be true”.
Crossing legal boundaries is possible with gamification. If the mechanics of the game can be classified as gambling or sweepstakes, it would be wise to establish the applicable laws for your business and location.
Some Best Practices
- Find a match for your brand’s tone and goals.
- Enhance the user’s experience, don’t distract them from their buying journey.
- Prioritise the user experience of the gamification and remember device responsiveness.
- Start small to confirm the receptiveness of your audience to gamification. Grow from there as required.
- Implement tracking of the gamification to clearly determine the impact it has on your store.
In Summary
Gamification, when used thoughtfully, can be a powerful tool in ecommerce. It taps into deep psychological triggers to boost engagement, increase conversions, and build loyalty. But it must align with your brand, be designed with user experience in mind, and avoid gimmicks or legal pitfalls. Done right, it creates a more enjoyable, rewarding journey for the customer... and a more profitable one for you.