As businesses are struggling to retain customer loyalty, Mastercard suggests gaming might offer some solutions.
The new IDC InfoBrief, developed with support from Mastercard, ‘Reinventing Rewards: A New Game Plan for the Loyalty Program Industry’, reveals that leveraging gaming-related strategies is one of the most promising new ways to drive customer engagement and loyalty.
Traditional loyalty programs often rely on short-term promotions and rigid structures, which may not effectively engage today’s digital-first consumers. These consumers seek personalized, seamless, and experiential rewards. All those qualities are inherently found in gaming. To address this, businesses are encouraged to adopt a more customer-centric approach that fosters deeper engagement and long-term retention.
This report is particularly relevant for Asian businesses. Over 57% of Asian companies are struggling to keep customers loyal, prompting businesses to explore new engagement strategies. One promising approach comes from an unexpected yet influential industry — gaming. By 2027, according to Mastercard estimates, 30% of Asian businesses will prioritize maximizing customer value over offering experiences to boost retention. With the global gaming market expected to hit $226 billion by 2025, 56% of which will come from Asian countries, integrating gaming into loyalty programs presents a unique opportunity to deepen customer engagement and build long-term connections.
The given report highlights that traditional loyalty programs are becoming less effective in the digital era. Some businesses have found that loyalty programs as we know them may not effectively encourage repeat purchases or disproportionately reward customers who would have purchased anyway, questioning the return on investment. Many businesses also face numerous challenges related to customer satisfaction with the terms, loyalty program sustainability, and financial effectiveness.
To improve customer engagement, businesses should simplify joining the program, offer flexible point redemption, partner with experts in gaming and loyalty, and ensure smooth integration with secure, easy-to-use third-party solutions.
Some companies have already integrated gaming elements in their loyalty programs. For instance, Grab, a popular ride-hailing and super app in Southeast Asia, has added game-like challenges to its GrabRewards program. Users earn points by completing in-app activities, which they can later redeem for rewards. The e-commerce giant Shopee often runs mini-games during its big sales events. Customers play these games to win discount vouchers and other incentives, making shopping more interactive and fun. Even Singaporean bank DBS has integrated gamification into its mobile banking app. By completing digital tasks and interactive challenges, customers earn reward points and benefits, enhancing engagement with the bank’s services.
Abhishek Kumar, Associate Research Director at IDC Asia/Pacific, noted that integrating game-based rewards into loyalty programs allows companies to enhance customer experiences and attract a new, high-spending user base. This shift from traditional point-based systems to immersive engagement strategies is crucial for building lasting customer relationships in today’s digital economy.
Ajeet Chauhan, Vice President of Products and Solutions for Asia Pacific at Mastercard, also highlighted that gaming has evolved into a dynamic and inclusive reality, touching the lives of billions worldwide. With its diverse audience, gaming offers businesses a unique opportunity to engage and retain customers by tapping into the rapidly growing gamer currency market.
Mastercard has been proactive in this space, launching Mastercard Gamer Xchange (MGX), a solution that enables consumers to convert unspent rewards points into gaming currency across nearly 4,000 popular gaming resources. This initiative exemplifies how businesses can innovate loyalty programs by embracing the gaming industry’s expansive reach and engagement potential.
