Abstract

A loyalty program is an important link between consumers and merchants in daily consumption. While new technologies (e.g. gamification, social networks, augmented reality, and so on) make it possible to strengthen this bond, their potential has not yet been fully exploited. In our research, we explore a novel approach to integrate gamification and social interaction into a loyalty program based on augmented reality (AR). We propose an AR-based gamified point system which supports users in obtaining pet-based dynamic feedback on mobile devices and provides a multi-user environment for social interaction. Compared to traditional point systems, pet-based designs help to establish an emotional connection between users and the system. The multi-user environment is designed to increase the user’s motivation through the positive effects of social interactions. Our system provides interpersonal communication channels between users, including competitive and non-competitive interactions. We performed an evaluation consisting of two experiments to examine the effects of game elements (mission and feedback) and social cues (competitive and non-competitive interactions). In the first experiment, we analyze the change in online shopping behavior before and after adding game elements. The results show that gamification can increase user participation in online shopping. In the second experiment, we study the effects of social cues. The results show that social cues can motivate users to participate in the use of a gamified point system.

Highlights

  • IntroductionLoyalty programs are structured marketing strategies, designed by merchants to encourage people to continue to shop at or use the services of businesses associated with the program [1]

  • Loyalty programs are structured marketing strategies, designed by merchants to encourage people to continue to shop at or use the services of businesses associated with the program [1].They are effective at retaining customers by preventing them from turning to competitors and can maximize the lifetime value of a customer by offering incentives to spend more and buy more often [2,3,4,5,6]

  • We explore a novel approach to integrate gamification and social interaction into a point system based on augmented reality (AR) to solve these problems

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Summary

Introduction

Loyalty programs are structured marketing strategies, designed by merchants to encourage people to continue to shop at or use the services of businesses associated with the program [1]. They are effective at retaining customers by preventing them from turning to competitors and can maximize the lifetime value of a customer by offering incentives to spend more and buy more often [2,3,4,5,6]. The problem is that stamp card-based loyalty programs lack support for customer data analysis, which means that marketing and rewards cannot be targeted [15,16,17]

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