Incentivising digital transactions: How gamification and rewards are boosting engagement

The emergence of digital payments has transformed our relationship with money. It's now easier than ever to pay bills and transfer money, and banks and fintech companies don’t have to struggle to find users for their digital transactions. The true difficulty, though, is keeping users engaged and reactivating those who haven’t used their accounts in 60 to 90 days. The answer is a combination of gamification techniques, quick rewards, and loyalty programmes.

The problem of engagement

Millions of people have been successfully boarded by banks and fintech companies, but maintaining regular user engagement has proven to be a chronic challenge. Reactivating customers who have stopped transacting after a predetermined amount of time—typically 60 to 90 days—is the main challenge. Maintaining consumers’ motivation and enthusiasm for frequent use of these platforms is the main difficulty.

Various approaches to increase involvement

Businesses are increasingly using gamification, quick gratification, and loyalty programmes in tandem to address this problem. These strategies not only promote more frequent transactions but also provide users a feeling of satisfaction and accomplishment.

Coins and points via loyalty programmes

With each transaction, consumers can now earn coins, points, or credits through loyalty programmes offered by several fintech sites. Users are encouraged to make frequent purchases in order to accrue more points using this method, as these digital currencies can be later redeemed for incentives or discounts. This strategy works especially well to promote sustained user involvement.

Instant reward: Scratch cards and gift cards

One of the strongest incentives is instant pleasure. Users are more inclined to participate again when they get benefits right away after finishing a transaction. The use of scratch cards or vouchers is one such instance. 

For example, consumers sometimes receive a digital scratch card after using digital wallets to pay for their bills. This scratch card can then be used to get discounts, cashbacks, or vouchers. Users are encouraged to use these platforms again; this is straightforward yet powerful technique, which satisfies their craving for instant rewards.

Gamification: Spin the wheel, polls, and other activities

One of the best methods for keeping users interested is gamification. Payment apps that include features like surveys, quizzes, or spin-the-wheel activities make for a more engaging user experience than a simple transaction. These gamified models are made to collect useful data while maintaining user engagement; so they’re not simply for fun.

Benefits for all user types

1. First-time users: A potent hook may be to offer a prize for completing users’ first transaction. A straightforward scratch card or cashback can entice new users to use the app.
2. Frequent users: Platforms frequently launch tiered loyalty schemes for regular users. The benefits increase with the amount of transactions they do, thus guaranteeing long-term involvement.

Banks & fintech firms: Partnering to provide savings

In order to increase digital transactions, banks are also using incentives and deals, especially around the holidays and peak shopping seasons. Through co-funded discount schemes that many banks operate with online retailers, customers can receive cashback or percentage-based discounts when they use a certain bank’s credit card. 

Promotions, like ‘10% off on dining’ or ‘Rs 100 cashback’, encourage client interaction and raise the volume of online sales. 

Significant increase in bank customer interactions have been observed, particularly during specialised campaigns, like hyperlocal dining and Women's Day. This is a potent method for brands to engage with consumers. 

Categories of offers

Here are some typical offer formats that banks and fintech companies use to entice users:

1. Merchant-funded percentage discounts, such as 10% off on meals or retail purchases
2. Banks and retailers work together to provide co-funded discounts, which are usually offered during sales or festivals.
3. Cash vouchers: Straightforward cash savings, like Rs 100 off on a minimum spend
4. Bundle offers: Sets of cheap memberships, such as five subscriptions for Rs 99
5. Campaign special: Women’s Day, Mother’s Day, Diwali, Dining Fest, and other special days 

In India, the requirement of incentives changes according to the festival and location. Therefore, Indian consumers require specific offers, which cater to the needs of the audience across the country. 

The author is the co-founder of plutos ONE, which is a technology service provider for the Bharat Bill Payment System and also operates an incentive platform for banks and networks.