5 Examples of Gamification in Loyalty Programs
Dec 31, 2025
A loyalty program doesn't have to feel like a transaction. The most effective programmes tap into something deeper—the same psychology that makes games compelling, that keeps people coming back to complete just one more level or earn one more achievement.
This is gamification: applying game-like elements to non-game contexts. And when it's done well in loyalty programs, the results are remarkable. Research from Snipp Interactive found that incorporating gamification into loyalty programmes led to a 47% increase in customer engagement. That's not a marginal improvement—it's transformational.
What makes gamification so effective? It creates genuine motivation. Customers aren't just collecting points because they might eventually get something free. They're working toward goals, competing with themselves (or others), celebrating milestones, and experiencing the satisfaction of progress. The reward becomes secondary to the experience of earning it.
For small business owners, this might sound like something only enterprise brands can pull off. But the underlying principles are accessible to any business willing to think creatively about their loyalty programme. Let's examine five brands that have mastered gamification, and extract lessons you can apply—regardless of your business size.
What Makes Gamification Work?
Before diving into examples, it's worth understanding why gamification is so effective at driving engagement.
Progress and achievement. Humans are wired to pursue goals. When we can see our progress toward something—a filled progress bar, a badge earned, a level unlocked—we're motivated to continue. This is why video games are so compelling, and why the same mechanics work in loyalty programmes.
Variable rewards. Predictable rewards become routine. But when there's an element of surprise—a scratch card, a spin-the-wheel, a random bonus—engagement spikes. The anticipation of what might happen creates excitement that fixed rewards can't match. This is the same principle behind surprise and delight in loyalty programs—when customers don't know exactly what's coming, the emotional response is far stronger than when they can predict the outcome.
Competition and social proof. Leaderboards, challenges, and comparative achievements tap into our competitive nature. Even when competing against ourselves (beating our own record), the game-like framing makes participation more engaging. Understanding the different types of reward programme structures available helps you choose which mechanics to gamify—whether that's a stamp-based system where progress is visual or a points-based model where earning feels more like scoring.
Status and recognition. Tiers, badges, and exclusive access make customers feel special. Moving from "member" to "gold member" isn't just about better rewards—it's about identity and recognition.
Mastery and learning. Some gamified programmes reward customers for learning about products or completing educational content. This creates value beyond transactions and deepens the customer relationship.
Now let's see how leading brands put these principles into practice.
5 Brands Excelling at Gamified Loyalty
1. Samsung: Turning Training Into a Game
Samsung's Learn & Earn programme demonstrates how gamification can transform even mandatory activities into engaging experiences. While this programme targets retail sales staff rather than end consumers, the principles translate directly to customer-facing loyalty.
The programme incentivises retail salespeople to participate in training events and retain product knowledge. What could be a tedious corporate requirement becomes something people actively want to engage with. It's a compelling case study in how training staff on a loyalty programme can itself become a gamified experience—when the learning process feels rewarding, adoption follows naturally.
How the gamification works:
After training sessions, participants receive Scratch & Win games based on the educational content. These aren't random chance games—they're skill-based challenges where participants must "scratch" to reveal the correct answer to claim their prize. This clever mechanic reinforces learning while adding excitement.
Correct answers earn points, monetary vouchers, or raffle tickets. The timing is strategic too: games arrive three hours after training, when the content is still fresh but attention might be waning.
What small businesses can learn:
Even simple educational engagement can be gamified. A café could send a "coffee quiz" to loyalty members, with bonus stamps for correct answers about bean origins or brewing methods. A salon could reward clients who watch a short video about new treatments. The learning doesn't need to be complex—it just needs to be rewarded.
2. Fitbit: Competition as Motivation
Fitbit has built its entire platform around gamification, turning the solitary act of exercise into a social, competitive experience. For a product category that struggles with long-term engagement (how many fitness trackers end up in drawers?), this approach has been transformational.
How the gamification works:
Daily step goals create immediate, achievable targets. Users set their own goals and receive congratulatory notifications when they hit them—a small dopamine hit that reinforces the behaviour.
The competitive element comes through friend challenges. Users can compete against friends or other Fitbit users to see who achieves the most steps in a day, week, or weekend. Leaderboards show where you stand, and the desire to not be at the bottom (or to claim the top spot) drives activity.
Badges and achievements mark milestones: walking a certain distance, climbing flights of stairs, hitting step goals consistently. These virtual rewards have no monetary value, yet they're surprisingly motivating. Users proudly display their badge collections and work toward specific achievements.
What small businesses can learn:
Competition doesn't require expensive technology. A coffee shop could run a monthly "most visits" leaderboard (with permission from participating customers), with the winner earning a special reward. A gym could create team challenges where groups compete for collective achievements. Even something as simple as "customer of the month" recognition taps into the same psychology.
3. Xbox Live Rewards: Extending the Game Beyond the Console
Microsoft's Xbox Live Rewards programme demonstrates how gamification works naturally when your product is already a game. But the programme goes beyond simply rewarding gameplay—it gamifies the entire Xbox ecosystem.
How the gamification works:
Users earn "MyVIP" points through various activities: completing in-game challenges, making purchases on the Xbox Store, participating in surveys, and answering quizzes. This variety means there's always something to do, always a way to earn.
The monthly Gamerscore leaderboard adds competitive urgency. Players compete with friends and other members to earn the highest Gamerscore—a reflection of in-game achievements. This drives players to explore new games and unlock achievements they might otherwise ignore.
Points can be redeemed for discounts, exclusive content, or cashback—tangible rewards that complement the intrinsic satisfaction of climbing the leaderboard.
What small businesses can learn:
Multiple earning paths keep programmes fresh. Beyond purchases, you could reward customers for referrals, reviews, social media engagement, or attending events. The more ways to participate, the more opportunities for engagement. Perkstar's platform supports this approach with features like Google Review rewards and referral programmes built alongside traditional stamp or points earning.
4. KFC: Mini-Games That Drive Orders
KFC has added an unexpected layer to the fast-food loyalty experience: an in-app arcade. This isn't just a gimmick—it's a strategic tool that drives both engagement and revenue. In a category where most loyalty programmes offer predictable earn-and-redeem mechanics, the arcade element is a masterclass in making a loyalty programme stand out from competitors—it gives customers a reason to engage that has nothing to do with price.
How the gamification works:
For orders over a certain amount, loyalty members can scan their QR code before purchasing through the KFC app. After their order, they receive a push notification inviting them to play a mini-game.
These games aren't complex—they're quick, satisfying experiences that take seconds to complete. Win, and you earn additional stamps, bonuses, or other rewards. The element of chance (will I win something good?) creates anticipation that makes the next order more exciting.
KFC also runs limited-time challenges, like trivia quizzes about their menu or "Secret Recipe" themed games. These create urgency and give customers a reason to engage beyond their regular ordering patterns.
What small businesses can learn:
Surprise elements dramatically increase engagement. You don't need to build a mobile game—even a simple "spin the wheel" mechanic or scratch card after purchases creates that moment of excitement. Perkstar includes features that support this kind of variable reward, allowing you to surprise customers with bonus stamps or special offers that keep the programme feeling fresh.
5. Starbucks: The Gold Standard of Tiered Rewards
Starbucks Rewards is often cited as the benchmark for loyalty programme gamification, and for good reason. The programme has masterfully combined progress mechanics, personalisation, and status to create genuine loyalty.
How the gamification works:
The core mechanic is simple: earn "Stars" with every purchase. But the gamification comes through how those Stars are deployed.
The programme uses tiers that create clear goals. Customers can see exactly how many Stars they need to reach the next membership level, and each level unlocks better perks. This progress visualisation—watching your Star count grow, seeing how close you are to the next tier—creates the same satisfaction as levelling up in a game.
Personalised challenges add variety. Starbucks might challenge you to try a new menu item, visit on specific days, or order in certain ways. Complete the challenge, earn bonus Stars. These challenges are algorithmically personalised, meaning each customer sees different opportunities—which both improves relevance and creates a sense that the programme is "for you."
Limited-time bonus Star promotions create urgency. Double Star days, seasonal challenges, and special events give customers reasons to visit more frequently than their normal patterns. For small businesses inspired by this model, the good news is that building a loyalty app like Starbucks Rewards doesn't require Starbucks' budget—the behavioural mechanics that make it work can be replicated at a fraction of the cost. The good news for independent businesses is that the behavioural architecture behind Starbucks Rewards doesn't require a $100 million app budget—the core principles of tiered progress and personalised challenges can be replicated at any scale. For a deeper look at how every element of the programme works together, the Starbucks Rewards case study reveals just how deliberately each mechanic is designed to reinforce the next.
What small businesses can learn:
Tiers work even without the Starbucks budget. A simple bronze/silver/gold structure, where benefits improve at each level, creates goal-oriented behaviour. Perkstar supports membership cards that can function as tiered programmes, allowing you to recognise your best customers with exclusive benefits while giving everyone else something to aspire to.
Bringing Gamification to Your Small Business
These examples come from major brands with significant resources, but the underlying principles are accessible to any business. Here's how to apply gamification thinking to your loyalty programme:
Start with Progress Visibility
The simplest gamification is showing customers how close they are to their next reward. A progress bar, a stamp count, a "3 more visits until your free coffee" message—these create the same motivational pull as a video game progress indicator. Digital loyalty platforms like Perkstar display this progress automatically, giving customers that satisfying visual of approaching their goal. The key is keeping the mechanic immediately understandable—simplicity drives customer loyalty because customers who can grasp their progress at a glance are far more likely to stay motivated than those who need to decode a complicated points table. This is exactly why digital punch card programs remain so effective—the visual accumulation of stamps toward a clear reward taps directly into our goal-pursuit instincts.
Add Surprise Elements
Predictable rewards are fine, but occasional surprises create memorable moments. This could be random bonus stamps, unexpected free items, or periodic "lucky draw" opportunities. The key is that customers don't know exactly when these will happen—the anticipation creates ongoing engagement. Building a structured surprise and delight program doesn't require a large budget—even a single unexpected bonus stamp per month can shift how customers feel about your business. Even small gestures—a random free item on a quiet Tuesday, an unexpected bonus stamp—can create the kind of surprise moments that build stronger loyalty than any predictable discount schedule.
Create Milestone Celebrations
Acknowledge when customers hit significant points: their 10th visit, their first reward redemption, their one-year anniversary as a member. These moments of recognition make customers feel valued and create emotional connection to your programme. Automated birthday rewards—a feature Perkstar includes—are an easy entry point. These milestones also present an opportunity to go beyond the expected—rather than just offering a discount, consider unique ways to reward customers that feel personal, like a handwritten note or early access to a new product. This works because of a well-documented principle in loyalty program psychology: recognition of progress triggers a stronger emotional response than the reward itself.
Consider Challenges and Bonuses
Limited-time opportunities to earn extra rewards drive behaviour. "Double stamps this weekend" or "Try our new menu item this week and earn a bonus" creates urgency and encourages customers to visit when they might not otherwise. Time-limited challenges also help improve your loyalty program redemption rate by giving members a specific, urgent reason to use the rewards they've been accumulating.
Make It Social When Appropriate
Referral programmes tap into social motivation—customers earn rewards for bringing friends, and new customers join with a positive impression. Leaderboards and competitions can work too, though they require careful implementation to avoid making customers feel bad about their relative standing. The most powerful referrals often come from customers sharing their experiences organically, which is why understanding how social media influences customer loyalty can help you design programmes that encourage authentic advocacy rather than forced promotion. The most powerful referrals often come from customers sharing their experiences organically, which is why understanding how social media influences customer loyalty can help you design programmes that encourage authentic advocacy rather than forced promotion.
The Balance: Engagement Without Manipulation
A word of caution: gamification should enhance the customer experience, not manipulate it. The best gamified programmes feel rewarding and fun, not like psychological tricks designed to extract more money.
The test is simple: would your customers enjoy the gamified elements even if the rewards were smaller? If the answer is yes—if the progress tracking, the challenges, the surprises genuinely add something positive to their experience—you're on the right track. If the gamification only works because it's tricking people into spending more than they intended, you've gone too far. Getting this balance right is ultimately a design question—the same design principles that drive loyalty programme results also serve as guardrails, ensuring your mechanics reward genuine engagement rather than exploit psychological vulnerabilities.
Done well, gamification creates a genuine win-win. Customers get a more engaging experience and feel recognised for their loyalty. Your business gets increased engagement, more frequent visits, and stronger customer relationships. That's the goal.
Ready to Add Gamification to Your Loyalty Programme?
You don't need enterprise-level technology or a dedicated development team to incorporate gamification into your customer loyalty programme. The principles—progress visibility, surprise elements, milestone recognition, timely challenges—can be implemented with the right platform.
Perkstar includes features that support gamified loyalty: automated rewards that trigger at key moments, push notifications for limited-time bonuses, referral programmes that reward social engagement, and progress tracking that keeps customers motivated. The 14-day free trial lets you test these capabilities—no credit card required—so you can see how gamification could work for your business.
