What do Sephora, IKEA, and AliExpress have in common? Besides being global giants, these brands have tapped into the power of gamification to create deeper, more engaging customer experiences.
In today’s world, gaming isn’t just for idle fun anymore—it’s also a powerhouse for promotion and branding, thanks to the rise of gamification. According to Research and Markets, the gamification market is expected to grow at a CAGR of 26.8% and will most likely reach USD 78.94 billion by 2030.
It’s no surprise, then, that some of the world’s biggest brands have been leveraging gamification to supercharge their branding strategies for over a decade. Gartner reported as early as 2012 that 70% of the leading 2000 companies had begun using gamification to boost their sales and marketing efforts.
So, how exactly does gamification work as a branding tool? Let’s dive in.
# 1 Immersive Shopping Experience
Sephora was ahead of the curve when it started weaving gamification into its shopping experience. From ‘Beauty Uncomplicated’ to the recent ‘Beauty Insider Challenges’, the cosmetics brand has found success in engaging its customers through gaming. And rewards are aplenty.
With every step in these games, customers rack up reward points and bonuses they can use for discounts. But this isn’t just about driving sales. These games also offer personalized recommendations, increasing brand awareness. The result? Sephora’s Beauty Insider program now boasts 34 million users worldwide and has driven a 20% increase in sales.
Gamifying retail shopping leads to deeper engagement and increased brand awareness – factors that ultimately lead to loyalty. When customers enter a video game, they feel fully immersed in the storytelling that allows brands to create memorable experiences.
# 2: Higher Conversion Rates
Gaming is all about rewards and retention. In the case of ecommerce, that means loyalty points that keep customers coming back for more. IKEA saw its online sales double when it introduced a Virtual Reality (VR) game for its e-commerce store. This VR experience lets buyers preview colors, styles, and furniture options in a fun, interactive way—turning what could be a mundane task into a decision-making adventure.
Interactive storytelling through gaming nudges buyers to make purchases they might not otherwise have made. This is not only a fun way to engage with brands, but it aids customers in their decision-making, inspiring them to purchase the targeted products or services.
# 3: Onboarding New Customers
Casper, the mattress company, took a rather clever approach by adding riddles and puzzles to subways and newspaper ads to engage New York commuters. The ads were simple—just the Casper logo and a riddle. To solve it, commuters had to visit the Casper website, where they’d find answers and could win a coupon code. This campaign wasn’t just about sales; it was about building brand awareness and associating Casper with fun and cleverness.
Through gamified marketing, brands can create curiosity and FOMO among new and potential customers. Rewarding customers further builds trust and could turn potential customers into loyal buyers.
# 4: Accessing Customer Data Through Gameplay
It’s not all about just making sales either. Through online game marketing, companies get access to valuable customer data. Before diving into a game, participants often fill out forms or sign up, which helps companies to collect data on interested customers who can be re-targeted with new offers, discounts, or product launches. Red Bull created ‘Red Bull Air Race: The Game’ which not only boosted brand awareness but also collected data that led to targeted campaigns among millennials and Gen-Z.
Brands can integrate data collection mechanisms into their gameplay and gather information about demographics, behaviors, and preferences of current and potential customers. This information helps create targeted branding campaigns.
How do you gamify your sales and marketing?
So the question now is: how should you gamify? There are many ways to add gamification to your online or in-store experience. One of the most common ways is to leverage technology to create single- or multi-player online games and embed your branding or sales goals into them. But before doing so, it’s important to have clearly defined goals before including gaming in your promotion.
| “Gamification is 75% psychology and 25% technology.” – Gabe Zichermann, author. |
# 1: Spell out your goals: Clearly define what you want to achieve—whether it’s more engagement, increased sales, or customer retention.
# 2: Make your game fun: Use leaderboards, reward points, coins, and badges to keep your audience engaged and entertained.
# 3: Pay attention to metrics: Set up data collection mechanisms and measure what matters. Align these metrics with your gaming goals.
# 4: Constant feedback and analytics: Regularly analyze your collected data and adjust your strategy. Customer feedback is gold for timely actions and branding decisions.
#5: Keep it fresh: Continually introduce new features to maintain high interest levels.
Final Thoughts
The beauty of gamification today is that you don’t need to be a coding wizard to get started. With no-code platforms, creating single or multiplayer games is easier than ever, giving businesses the flexibility to plan their branding projects and get instant feedback.
