Policy to Increase Customer Loyalty: A New Secret to Unlocking The Impact of Gamification on New Loyalty Programs (Case Study of Travel Agencies on Alborz Province)
Subject Areas : Public administration
ٍEsmaeel Rostamzadeh Ganji
1
,
nahid mahmudpur
2
,
saeid mahammad zade
3
1 - . Assistant Professor of Public Administration Department, Payam e Noor University, Tehran, Iran
2 - Doctoral student of Business Administration, International Center of Payam Noor University, Iran
3 - Doctoral student of Business Administration, International Center of Payam Noor University, Iran
Keywords: Strategy, Gamification, Loyalty Programs, Customer Loyalty.,
Abstract :
Policy to Increase Customer Loyalty
A New Secret to Unlocking the Impact of Gamification on New Loyalty Programs
(Case Study of Travel Agencies on Alborz Province)
Esmaeil Rostamzade Ganji
Assistant Professor of Public Administration Department, Payam e Noor University, Tehran, Iran
Nahid Mahmud Pour
Doctoral student of Business Administration, International Center of Payam Noor University, Iran
Saeed Mohammad Zade
Doctoral student of Business Administration, International Center of Payam Noor University, Iran
Received 18 May 2024 | Revised 21 July 2024 | Accepted 5 August 2024
Extended Abstract
This study examines the impact of gamification on customer loyalty and evaluates the relationship between gamification strategies and outcomes like repeat purchases, referrals, and brand advocacy.
Using quantitative data and a correlational method, it innovatively focuses on the underexplored travel services industry, specifically in Alborz province, where similar research has not been conducted before. Data was collected via questionnaires vetted by sales and after-sales managers of travel agencies in Alborz.
The statistical population includes their customers, with a sample size of 384 determined through random sampling. This applied survey-based research shows that gamification in loyalty programs can foster deep customer relationships, increasing revenue and market share. The study's novelty lies in examining a new marketing approach and its impact in a specific geographic area, providing valuable insights for future research and strategic planning in the travel services industry.
Gamification boosts customer loyalty and enhances user experience, leading to sustainable company growth. It improves conversion rates and reduces churn. This study underscores the importance of gamification in loyalty programs, urging companies to adopt these strategies. The findings help businesses develop effective loyalty programs, increasing sales and profitability, and providing better strategies for customer attraction and retention.
Gamification and rewards have been examined as effective methods for increasing customer loyalty in numerous books and articles by scholars and experts in this field. In his book "Persuasive Technology: Using Computers to Change What We Think and Do," B. J. Fogg discusses the importance of using persuasive technologies to change human behavior and shows that motivational elements such as points, badges, and prizes can increase customer engagement. A practical suggestion in this regard could be to launch loyalty programs with points and digital badges for customers so that with each purchase, customers earn points that can be converted into prizes or discounts. In his article "Hearts, Clubs, Diamonds, Spades: Players Who Suit MUDs," Richard Bartle categorizes players based on their motivations and behaviors and presents principles for increasing their engagement and motivation that can help create a sense of competition and cooperation among customers. A practical suggestion for this could be to hold periodic competitions and challenges where customers can compete with each other and be ranked, for example, including activities such as buying more or introducing friends to the brand.
In the book "Drive: The Surprising Truth About What Motivates Us", Daniel Pink examines human motivations and emphasizes the importance of intrinsic and personalized rewards, which can lead to greater customer loyalty. A practical suggestion in this regard is to personalize the reward system and provide special and unique offers based on customer behaviors and preferences.
In the book "Reality Is Broken: Why Games Make Us Better and How They Can Change the World", Jane McGonigal discusses the positive effects of games and game development on society and the individual and outlines principles that can increase social interactions and loyalty. A practical suggestion is to provide social features such as sharing achievements on social networks, creating customer groups and communities, and holding online events.
In his book "The Gamification of Learning and Instruction: Game-based Methods and Strategies for Training and Education," Carl Kapp explores the applications of gamification in education and learning, noting the importance of immediate feedback, which can increase customer motivation and engagement. A practical suggestion in this regard is to provide customers with quick and positive feedback, for example, after each purchase, send an instant thank you message and show their progress in a loyalty program.
These practical resources and suggestions can be used as a foundation for a deeper understanding and application of the principles of gamification and rewards in businesses, to create an engaging and interactive experience for customers and to provide a long-term relationship between the brand and the customer.
Keywords: Strategy, Gamification, Loyalty Programs, Customer Loyalty
Contribution of authors
All authors have participated in this research in equal proportion.
Ethical approval
Written informed consent was obtained from the individuals for their anonym zed information to be published in this article.
Conflict of interest
No conflicts of interest are declared by the authors.
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