Customers are the lifeblood of your company. We all know this.

But did you know that it’s the loyal ones who actually boost revenue? Just a five percent rise in customer retention can, in fact, increase a company’s profitability by 75 percent!

Loyal customers are likely to buy more often and spend more money on each purchase. According to Forbes, it’s also five times cheaper to keep them than to acquire new ones. The same logic applies to the game industry.

Loyalty is the key to higher profits. Here’s the tricky part: Loyalty can’t be won — it must be earned. What better way to make that happen than through a reward system?

Here are 4 ways how a reward system boosts loyalty:

1. Rewards make players stick around.

Rewards are a gift you give your loyal users. Players get hooked on a sense of accomplishment and satisfaction that comes with getting something back from the game. Research shows that rewards increase the motivation for tasks that have little intrinsic value and they encourage feelings of competence and autonomy. Scientists argue that it’s not even the reward itself. Instead, it’s the anticipation and craving for it that make a difference and prompt players to stick around.

Photo by Japheth Mast on Unsplash

2. Elite status improves player dedication.

We like to distinguish ourselves from the crowd and reward systems make it possible. Remember how arcade machines used to present the top scores? Nowadays, it’s the virtual items and in-game accomplishments that matter. They are the ultimate proof of players’ advanced skills. Sponsored levels or elusive skills and unlocked equipment all boost a player’s status in the gaming community. And studies show that the value of showing off a reward

should not be ignored.

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3. Real-life value boosts player retention.

Rewards systems add a new layer to the game beyond its digital dimension. For example, Hatch- it! fans can get their hands on actual branded goods — merchandise is strategically hidden throughout the game narrative. The player must level-up sufficiently and finish certain levels before having the opportunity to purchase special branded items like t-shirts, mugs, and phone cases. The longer they play — the larger the discount. The game boosts its player retention rate by increasing customer engagement beyond the in-game experience.

Hatch-It! on iOS

4. Rewards improve the gaming experience.

The prospect of getting a reward keeps players excited over the course of the game. It gives them specific goals to pursue beyond just hitting the finish line. The entire player experience can improve thanks to a perfect balance of reward-motivation and game-entertainment.

In real life, it might take years to get the promotion you dream of, but that’s not the case in the virtual world. What maintains a player’s interest, according to game designer Dr. Chris Batemen, is the delivery of rewards and not so much the quality of the game mechanics. Well-placed and well-timed game rewards elevate frustration and boost commitment.

Getting players is hard, but keeping them is harder. A game reward system provides a way to give gamers something back for the time and effort spent in-game. And that is a key to boosting loyalty and making fans stick around.

Are you a developer looking for ways to increase player loyalty, retention, and engagement — while delivering an amazing player experience? Give us a few claps below!