Game on! How gamified loyalty programs boost customer engagement value

Abstract Though gamified loyalty programs (GLPs), or loyalty programs that deploy gamified elements, are increasingly adopted, academic acumen of customer engagement with GLPs lags behind, thus exposing an important research gap. Based on this gap, we review the gamification-, loyalty program-, and customer engagement literature, from which we derive important insight. First, extending the customer engagement literature, we develop the concept of GLP engagement (GLPE), defined as members’ GLP-related behavior, expressed through direct- (i.e., purchase) and/or indirect (e.g., GLP-related learning/advocating) contributions, which we argue are critical to GLP effectiveness. Extending prior research, we also classify members’ indirect GLP contributions as autonomous (vs. interdependent)-, selfless (vs. self-seeking)-, control (vs. laissez-faire)-based-, collaborative (vs. competitive)-, individual (vs. generic)-, and calculated (vs. non-calculated) contributions. Second, we develop a self-determination theory-informed framework that proposes members’ intrinsic/extrinsic motivation as major drivers of GLPE, which in turn impacts customer brand engagement value (CBEV). Third, formalizing the framework’s associations, we develop a set of Propositions that serve as a springboard for further GLPE research. We conclude by discussing major implications that arise from this research.

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