In the bustling world of QSRs, loyalty programs have become essential for engaging and rewarding customers.
However, the plethora of programs and apps can be overwhelming to customers. To stand out, brands need to inject some fun into their programs and marketing communications. Gamification is the perfect solution, transforming routine interactions into exciting experiences that encourage customers to spend more and visit more often.
For QSRs to boost the number of transactions and improve profitability involves a holistic approach to loyalty programs, encompassing email marketing, SMS campaigns, and personalized offers. This approach—across features and functions—is called Relationship Marketing. And, like any relationship, it cannot be one-sided. Building any relationship requires give and take. Brands cannot continue to simply automate coupons within a loyalty program. Brands must consider how customers feel about the brand and how they want to interact.
Spice Up Your Loyalty Programs
QSRs can enhance their loyalty programs by introducing seasonal challenges and limited-time offers that generate a sense of urgency. Earning points for purchases keeps customers coming back, driving sales and loyalty. Incorporating quizzes, surveys, and zero-party data (data shared by consumers for personalized value) into your strategy allows for more personalized and engaging interactions.
The Benefits of Gamification
Gamification offers several key benefits for QSR marketing. It enhances messaging engagement by making emails and SMS messages fun, interactive, and rewarding, which leads to higher open and click-through rates. It brings excitement to loyalty programs, differentiating them from competitors with challenges, rewards, and interactive experiences that appeal to customers. And it offers new opportunities for data capture, which is a critical ingredient for building personalization and loyalty among consumers. By incentivizing data sharing, brands can gather valuable insights while keeping customers engaged.
KFC’s loyalty program, powered by Marigold Loyalty, is a prime example of each. Customers earn points for every dollar spent, unlocking access to exclusive content and a Secret Recipe Vault. KFC also introduced challenges, like ordering specific menu items to earn more points, driving repeat customer behavior, and boosting loyalty. This strategy quickly paid off, with the program reaching 1 million members shortly after its launch.
Gamification Techniques for QSRs
Whether you’re looking to keep things simple, or want to venture into the realm of advanced loyalty, here are five effective strategies QSR brands can employ with a proven history of success:
- Loyalty Tiers & Progress Bars:
Loyalty tiers (bronze, silver, gold, platinum, etc.) offer increasing exclusivity. Progress bars showing proximity to the next tier are highly effective, as people become more motivated as they near their goals. Displaying tier progression can encourage additional purchases as customers strive for new rewards. - Digital Punch Cards:
Digital punch cards acknowledge repeat business and show how close customers are to their next reward. Simple and effective, digital punch cards can be quickly implemented with a marketing solution provider like Marigold. - Task-Based Rewards:
Rewarding non-purchase behaviors, like SMS opt-ins or app downloads, can create long-term sales opportunities. This approach fosters engagement beyond transactions and strengthens the customer-brand relationship. - Data Collection Experiences:
Surveys, polls, and quizzes are excellent tools for collecting zero-party data. According to Marigold’s 2024 Consumer Trends Index, 78% of consumers use personalized offers. Offering valued benefits in exchange for personal data can inspire participation and enhance personalization. - Instant Wins:
Instant wins, such as wheel spins, peel-to-reveals, and scratch-offs, create excitement and significantly increase click-through rates. These interactive experiences capitalize on human curiosity and are much more engaging than static offers.
The QSR industry is evolving, and enhancing customer engagement and loyalty programs is crucial. By incorporating elements like loyalty tiers, digital punch cards, task-based rewards, data collection experiences, and instant wins, QSR brands can make their marketing strategies more dynamic and appealing. Embracing gamification sets brands apart from competitors and provides valuable customer insights, leading to sustained growth and loyalty.
Terri Gaughan is the Director, Enterprise Strategy at Marigold.