Coop's Use Of Marketing Gamification In Customer Relationship Management
With 200,000 members visiting their app each day, Coop releases game campaigns twice a week to engage, activate, and delight their customer base.
Coop was searching for a way to improve their customer relationship management and customer loyalty. While grocery store loyalty was once a given, a recent survey on shopping habits shows that most shoppers (83%) visit between four and nine grocery chains within a year. As expected, the study also found that location matters. Therefore, grocery brands and consumer goods companies need to be thoughtful about how they engage with their customers to create loyalty.
Coop is the largest consumer goods company in Denmark. What is unique is that the company is truly a cooperative, and Coop is owned by more than 1.8 million shareholders or members. Cooperatives are different from many businesses because the purpose is not to make a profit; rather it is to create value for members.
Knowing that they wanted to improve customer loyalty, Coop began searching for the right marketing gamification platform to use. After using a different company’s software, Coop joined the LeadFamly family. Along with designing their own game campaigns, the LeadFamly platform allowed Coop to get deep insights into how their users interacted with game campaigns. Coupled with Coop’s own data, they use these data points to make decisions.
Coupled with a plan to execute two campaigns per week, Coop needed an agile tool that could build campaigns and show the data insights. They also needed a solid solution because Coop has many engaged members on their app, with 200,000 members visiting the app daily. Because they have such active and engaged members, they also have an opportunity to partner with brand owners of fast-moving consumer goods (FMCG) and ‘rent’ them space or promotion in a game campaign.
The app also allows customers to pay for their groceries inside the app, keep a digital copy of receipts, see what’s on sale, and interact with Coop-designed game campaigns where they can win vouchers. Coop also uses push notifications to let app users know when they can play a game and perhaps win a prize.
Coop has seen great results from their twice-a-week game campaigns and engagement. Here are the numbers:
In December 2018, 95,000 people downloaded the Coop app. That same month, 700,000 people engaged with an Advent Calendar game on the app 3.5 million times.
Throughout 2018, people played games in their Coop app 10 million times.
1 million samples were picked up in stores in 2018.
If a customer collects a prize, the numbers show that the average customer spends up to 39% more than those not participating in the game campaigns.
What you can learn from Coop
Use data to make decisions. Coop mines data on customer behavior, spending patterns, and even how picking up prizes leads to visiting a Coop store more often. Many businesses talk about making data-driven decisions. How can you take a step towards using data in conversations and decision-making?
Partner with brands in an innovative way. Coop uses their popular app and twice-a-week game campaigns to work with FMCG brands to highlight their product. This approach won’t work for every business unfortunately. But how can this example be used to think of innovative ways to work with your partners or even clients?
Be consistent for the sake of your customers. Coop aims for two game campaigns a week, which means their customers know what to expect. This also keeps customers engaged and motivated to interact with the brand. What kind of consistency can you create for your audience?
Make it fun. Use game campaigns to make brand interactions fun for your audience. Along with the chance to win prize vouchers, this can motivate your audience while keeping your brand top-of-mind. How can you use gamification to engage your audience?
Make it easy to engage. In their app, Coop uses push notifications to let their audience know of new games or updates. It’s faster and more direct than email marketing. In fact, one study shows that 70% of people surveyed found push notifications useful. They also have a clickthrough rate 7x that of email. It feels fresher than email marketing, and makes it so easy for their audience to access the app. How can you make it easier for your audience to engage with your business, product, or brand?
Gamification uses incentives to drive long-lasting engagement, loyal customers, and more frequent visits to your brick-and-mortar store or app. What are you waiting for?