How Gilt turned their shopping site into a game using loyalty

We often get asked how loyalty and gamification can work with retailers?  Traditionally, a retailer would create a rewards program where you get money for every time you shop you get points back. This classic model has several faults. The main being that there is no immediate source of gratification and with high breakage (the amount of unused points) customers who buy once almost never get back anything to get them excited about (assuming they get something at all.

Therefore, its no wonder that today’s leading and cutting edge retailers like Gilt have completely redefined what it means to reward loyalty members. They do this by several ways as outlined in the slideshare below. Namely, they remind new users that you don’t need to spend to Join, earn points and right away new members have something to start with.

It’s no surprising that their product manager says that Gilt is a game.