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How restaurants are using gamification to increase engagement in loyalty apps

Restaurants are discovering the power of leveraging apps, loyalty programs and games to engage customers and drive traffic.

Restaurants are discovering the power of leveraging apps, loyalty programs and games to engage customers and drive traffic.

January 16, 2015 by Brenda Rick Smith — Editor, Networld Media Group

It's one thing to get a loyal customer to download your restaurant's app. It's another to get them to use it on a regular basis.

Upping customer engagement with brand is a big motivator behind several brands' recent addition of games to their loyalty apps.

Schlotzsky's added two games to its app last fall, the "Stackin' the Original" game and the "Scratch, Match and Win" game.

The "Stack the Original" game challenges players to stack thirteen ingredients on a sourdough bun as they fall from the sky. Players work through progressively difficult levels. Players who progress through the fifth level are awarded points towards a reward.

The "Scratch, Match & Win" game offered players the chance to win food and drink prizes by entering a code from their drink cup into the game app, then "scratching" and matching two buttons on the screen.

Schlotsky's worked with Punchh to come up with the Lotz4Me loyalty app and the game. Ideation began in July 2014, and the game launched in September.

Schlotsky's CMO Mark Mears says the purpose of the games is two-fold: acquisition of new Lotz4Me loyalty program members, and deeper engagement of those members.

"We want to engage customers on an emotional level," explains Mears. "the idea of gamification and social media sharing has become its own sport, if you will. People have a chance to share their scores with their friends, and compare and contrast who is doing well and not well and there's a psychic benefit to that."

Mears says thousands of game players have shared their results on social networks, making them ambassadors for Schlotzsky's within their circle of influence.

Acquiring new loyalty program members

In terms of acquiring new loyalty program members, Mears says the game has performed on par with the previous acquisition strategy, which was the offer of a free sandwich upon sign up. In October, Schlotzsky's suspended the free sandwich offer and replaced it with the "Scratch, Match & Win" game as a way to entice new members to join.

"I think it means there's different ways to accomplish the same objective," says Mears. While the free sandwich offer might appeal to some, the game appeals to others. "It's a chance to diversify our approach so it doesn't get stale. We always want to be sure that we are being relevant to our guests."

Engage customers

Aurelio's Pizza also worked with Punchh to roll out a similar game when they launched their loyalty app last year. In the "Pizzaman Game," players work through progressively difficult levels to help Pizzaman catch falling toppings on a pizza. Customers can earn 10 points a day playing the game.

"Customers love it," says Aurelio's COO Kirk P. Mauriello.

Around 6,000 have downloaded the app since its launch around Thanksgiving. Of that number, 4,500 have played the game and 900 have reached level five.

"In order to get to level five, it takes about ten minutes of playing the game," says Mauriello. For those ten minutes, players are seeing the logo and engaging with the brand. That exposure is leveraged when customers engage with other branding tactics, like advertising. "Your billboard ad becomes more relevant when someone has the app on their phone. There's recognition that comes into play."

The game also gives Aurelio's a fun reason to stay in touch with its loyalty program members through push notifications, says Mauriello.

Aurelio's will occasionally push a notification out that lets players know they can earn 50 points if they play within the hour. The notifications typically result in a significant response.

Converting points to traffic

That response means more game play, more game play means more rewards, and more rewards means more customers coming in to the restaurants.

Mauriello has observed that customers are redeeming rewards earned through the app – including points earned by playing the game – and redeeming the rewards for lower dollar amounts than through the card-based loyalty program Aurelio's previously had in place.

Previously, loyalty program members had to spend $200, then they would be mailed a certificate for $10 off their next purchase. It was necessary to set the rate that high to cover administrative costs for the program.

With the new loyalty app, the consumer starts earning rewards after they have accumulated 50 loyalty points, including points earned playing the game. Customers now have the option to redeem points starting at $2.50 up to $10 at a time.

"The number one redemption is a $2.50 redemption now," says Mauriello. "We're hoping that's going to result in more frequency because they have rewards available."

Mauriello says Aurielo's plans to add two additional games to its app.

About Brenda Rick Smith

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Brenda has more than 20 years of experience as a marketing and public relations professional. She invested most of her career telling the story of entrepreneurial non-profit organizations, particularly through social media.

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