Leveling Up – A classic game mechanic best known in role playing games. You perform tasks and accumulate experience points, etc. towards raising your level. With the increase in level comes added benefits such as the ability to jump higher, a new weapon, or new content.
We’ve seen this concept manifest in the real world in one of the oldest promotional ideas around: customer loyalty programs. Buy X amount of things and become a Gold Member! Or accumulate X amount of points from purchases and get a free Gizmo!
The issue here is that there’s usually a big disconnect between the effort and the reward.
The first problem is that the rewards are usually so few and far in between that they don’t provide any real incentive. If I just enrolled in a loyalty program at a beer store and I have to spend $200 to get a free glass, what kind of incentive is that? When the prize has no real relation to the amount of time or money spent, then it becomes more of a minor bonus than incentive to buy/do more.
Take a game like Call of Duty: Black Ops as an example of how things should be. In the beginning the leveling up comes fast and (relatively) easy. The rewards are minor, but they’re coming so quickly it doesn’t matter. As you level up, the rewards become fewer and farther in between but much more substantial.
Keeping with the beer store example. Why not give out a key chain bottle opener after $10, a free beer after $20, a cooler bag after $60, etc.
The second problem is that most of the customer loyalty programs that exist are based on one behavior: purchases. The modern purchase cycle has become so connected that there is now much more to reward customers for, beyond the simple buying of your product or service.
Yes, rewards for direct referrals have been around for a while, but what about indirect referrals? Why not reward customers for blogging about their great experience? Wouldn’t it be nice, as a brand, to thank your customers (with tangible rewards) for showing off your great sandwiches via Twitpic or Posting a Facebook gallery of your jewelry?
Badges are nice as a study in psychology, but when it comes to creating memorable experiences and engaging people, we can do so much more.


