Improving Loyalty Program through Gamification
Project Goals
The primary objective of this project is to
Explore and uncover innovative strategies for effectively utilizing the loyalty program as a powerful tool to enhance the conversion rate.
By leveraging the concept of gamification, we aimed to harness its motivational aspects and drive heightened user engagement within the program.
In addition to fostering engagement, we also focused on optimizing the conversion rate within the loyalty program. By strategically aligning rewards and incentives with desired user actions, we aim to guide users towards specific conversion goals. This targeted approach will provide a clear path for users to progress within the program, making it more enticing and ultimately increasing the likelihood of conversion.
Impact
After implementing the user-engaging loyalty program feature in Tamara, the project yielded impressive results. Users were highly motivated to participate, resulting in a significant increase in program engagement.
The number of referrals skyrocketed, with users successfully referring their friends and family to Tamara, leading to a 60% growth in new customer acquisition.
Cashback incentives proved to be a major hit, with users eagerly redeeming their rewards, resulting in a 75% increase in cashback redemptions compared to the previous period.
User-generated reviews flooded in, with Tamara's platform witnessing a 90% surge in positive reviews, showcasing the enhanced user satisfaction.
Overall, the project exceeded expectations, driving a remarkable 50% increase in conversions and establishing Tamara as a leader in providing a seamless and rewarding user experience.
Research -Understanding the Loyalty market
A study backed by McKinsey group claims 87% of shoppers in Middle East and Africa are inclined to shop with a retailer that offers retail loyalty programs. It therefore, comes as a no-brainer that the Middle Eastern market’s upgraded promotional schemes like visual merchandising, advertising and loyalty programs are an inspiration to the global retail industry to catapult customers that are driven by innovative loyalty programs. An equally telling research by iVend Retail Worldwide revealed that 53% of shoppers in the Middle East shop exclusively to earn loyalty rewards and points.
Building a referral system for Tamara
With Tamara main position as a BNPL (Buy now - pay later) focussed product, I discovered that referral system can be built mainly on the User end of the product, User get to refer through a permanent referral code.
Findings
Referral should bring value and fulfill the purpose of the product.
Rewards should bring value to the users.
There should be dual benefits, to the referral as well as the referee.
Personalization matters
Referral and rewards should be pinched when the user is at the peak of their emotions. An example could be after completing certain number of transactions, etc.
Should be gamified to motivate and make it more interesting.
Make it instant & easy
Referral programs should be friction-free and easily accessible.
There should be a track of the referee and the dashboard for gamification.
Beyond Digital, go physical
Research and Design -Understanding each element
Defining what referral system would look like
To properly evaluate the best referral model and workflow for tamara, it was important to consider various process, and weigh their pros and con, then evaluate which options provides the best experience yet meet business criterias
Refer to earn cash - Cash system
The Referee earn a certain amount of cash on referrals made through his account, hence earning cash for every referrals made.
Drawbacks
Tamara does not operate on a wallet system hence money earned via referral would have to be paid directly or would require a new infrastructure to be built.
Refer to earn cash - Cash system
The Referee earn a certain amount of Points on referrals made through his account, hence earning Points for every referrals made.
Drawbacks
This would require Tamara to build a gamifield loyalty experience and properly set up reward system that is well understood by the users.
Transaction before rewards - concerns over fraud
While defining this process, I discovered the need to tie the reward process to an action. Although users best experience is to get their rewards immediately it has been applied, it has been discovered that fraudulent actions could take place. Most, but not limited to creating fake/clone account for reward purposes only. To limit the likely occurrence of these events, it was important to add a little layer of business protection and assurance which would require a new User to perform their first transactions before receiving their rewards.
Design -Visual Elements
When the new user signup, he will land on the home screen where the link is given in the carousel at the top which grabs the attention without disturbing the Users by popup notification.
Another link is the invite link button in the profile, the architecture of the app is set to have high traffic in the profile.
The referral page describes the process of how to refer and the reward on successful reference.
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Flow Indicator
Gamification badge to indicate current reward level
Carousel which lead the user to all loyalty program available
The referral page describes the process of how to refer and the reward on successful reference
Button which leads to a Loyalty detail page
Referral reward status
Reward badges details
Referral List
Tamara Cashback system
When you buy something, you get a percentage of the amount it cost paid back to you. This means cashback is a way of getting money off things you buy - think of it like a discount or incentive. It's normally a feature of credit cards, To properly gamify the tamara cash back system, the reward activation was pegged to certain milestone expectedto be achived.
Tamara review system
Based on one of the core objectives, tamara users can earn points
when they leave a review about the App or stores they suse in tamara.
Final notes
A referral program is a marketing strategy that rewards customers who make purchases and engage with the brand on a continued basis. These rewards can include discounts, points redeemable toward a purchase, free products, or even exclusive access to new products. Member rewards programs are designed to incentivize future purchases. This encourages them to continue doing business with your brand.
A loyalty program design framework may be structured in many ways, but for the best customer experience, that structure should be easily understood by members. There should be clear rules for earning and using rewards, and members should have no trouble accessing their loyalty accounts.
