Loyalty Cards are inherently boring

, posted: 23-Sep-2011 13:43

Following on from my last blog Adding Location to Loyalty Cards, an area that I feel is really important is game mechanics. One of the problems with loyalty cards is that they are inherently boring and there are lots of them. We live in a world of constant distraction and we want instant gratification. However that gratification doesn’t have to be a free air ticket or turbo food processor with Ginzu knives. It can be as simple as points or recognition and applications today need to evolve as the public become more tech savvy on their mobiles.

What is game mechanics and how is it relevant? Playing games is part of who we human animals are. Games are a natural part of entertainment and education, whether it is a child doing its first jigsaw puzzle, or the All Blacks heading into a rugby match at that international world competition for a cup. Yes, ultimately no matter how passionate we are about success, Graham Henry and the NZRFU themselves said “It’s just a game.”

Games are immensely popular and computer and mobile  offers massive revenue potential. Gartner predicts that the global video game industry on its own will generate revenues of over US$112 billion by 2015. That doesn’t even take into consideration mobile. Application developers have been all over Facebook, now on Google+ and on devices such as iPhone, iPad and Android and now developers of smart location based games and marketing applications are heading the same way.

Developers are looking to use our interest and passion for playing games to influence the behaviour of consumers and it is working. One obvious area is in the retail, travel, tourism, attraction, hospitality and entertainment industries. Of course as I have outlined in many recent blogs, loyalty is a key aspect that all of these industries are looking for, or in other words, profitable repeat business.

So what aspects should a loyalty application include. A major one is achievements. I’ve talked about reward and that rewards don’t have to be tangible items. A reward can be points such as the points used by Foursquare when you check into a location. They also have badges and mayorships which are either the reward itself or their may be special deals or offers made to those people who come in regularly. The new Tap City game allows you to earn virtual dollars for checking in. One of the great things about group loyalty operations is the ability to cross market, for example using a passport concept where the more locations you check in to, the more rewards you get.

The appointment dynamic is extremely powerful. This is where you want people to do something at either a predetermined time or an ad hoc time. For example a restaurant that is always quiet between 3PM and 5PM on a particular day of the week might offer incentives within the application to get more business at that time of day. The concept I like the most, is pushing deals when you have inventory you want to use in a hurry. An example might be the special of the day in a restaurant where you haven’t sold as much as you catered for. The classic story I often use of a jet boat that is going out in 20 minutes with 5 empty seats. This is a perfect opportunity to push a deal to people who are close by and have opted in to be offered deals. The cost differential between having 4 or 9 passengers is negligible but the fun and entertainment factor of 9 people screaming as the boat does a 360 degree spin is significantly greater for all, including the 4 who paid full price. There is also a potential dynamic of more people seeing them having fun and therefore wanting to have a go themselves. The same could apply to any attraction, like the luges in Auckland and Queenstown.
Queenstown Luge
I can come up with a hundred concepts for different types of locations for cafe’s, restaurants, attractions, theatres, travel, accommodation, entertainment, retail, sport, tourism and so can you.

I will continue this blog next week with more thoughts on game mechanics or gamification that you might like to consider in your location based application. Remember, GeoSmart has all the data and tools you ned to make these ideas possible and whilst we don’t develop these sorts of applications ourselves, we have many partners who are keen to assist you if you want to take advantage of the opportunities now possible because of the large number of people using location aware mobiles. The question is how much extra business would you like?


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Other related posts:
Have You Tried The New Barfoot and Thompson iPad Real Estate App?
8 Ways to Grow Your Business with GPS
Consumption 2.0 and Mobility








Comment by dontpanic42, on 24-Sep-2011 17:02

For a start, I would actually like companies to follow through on their reward/loyalty schemes when they market it as a selling point.

http://www.geekzone.co.nz/forums.asp?forumid=64&topicid=89247


Comment by SteveON, on 25-Sep-2011 16:39

Heard of DealJunkie? Those guys built an app which is 80% there, a Pitty they didnt take on our offer which was going to hook them up with PayMark.


Comment by Bradley, on 2-Oct-2011 18:53

Some really interesting thoughts here. It kind of makes me wish I had a company where something like this could be implemented.


Comment by Bradley, on 2-Oct-2011 21:52

Some really interesting thoughts here. It kind of makes me wish I had a company where something like this could be implemented.


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Luigi Cappel
Auckland
New Zealand


Helping people getting their message to potential customers with blogs and social media.
Futurist and start up founder.
Passionate consultant about all things to do with Social, Location, Augmented Reality and Mobile.
Member of Auckland ICT Cluster
Chair of Computing and IT Industry Advisory Committee at National Technology Institute
Founding member and past president of the New Zealand Wireless Forum.
Past Vice President NZ Sales & Marketing Institute.