Gamification: how to increase engagement and revenue

Gamification: how to increase engagement and revenue

By Justin Eames April 2023

Gamification is now a key design consideration for app development, and for good reason. By implementing game-like features into non-game contexts, you can increase user engagement, retention, and revenue. One very effective gamification strategy is the use of multi-tiered reward systems.

Multi-tiered reward systems offer users incentives for completing specific actions within an app, such as making a purchase, referring a friend, or completing a certain number of tasks. These rewards should be structured in tiers, with increasingly valuable rewards being offered as users complete more actions.

One example of a successful multi-tiered reward system can be found in the popular fitness app, Sweatcoin.

Sweatcoin rewards users for completing steps with digital currency that can be redeemed for real-world items such as fitness gear, gift cards, and even cryptocurrency. Users can earn more Sweatcoins by referring friends or completing other in-app actions.

Sweatcoin offers real-world rewards in exchange for its users increasing their activity levels

This reward system has been incredibly successful in keeping users engaged and motivated. Sweatcoin has over 80 million registered users, and the app has been downloaded more than 45 million times. The company has even partnered with major brands such as Nike and Amazon to offer exclusive rewards to users.

Another example of a successful multi-tiered reward system can be found in the mobile game, Candy Crush. In Candy Crush, players earn stars for completing levels and can earn additional rewards for completing a certain number of stars. These rewards include in-game currency, power-ups, and extra lives.

The multi-tiered reward system in Candy Crush has been so effective that the game has become one of the highest-grossing mobile games of all time. As of 2021, the game has generated over $4 billion in revenue since its release in 2012.

Candy Crush Saga incentivises actions that it knows are likely to lead to increased revenue using time limited rewards.

Multi-tiered reward systems can also be effective in revenue-generating apps that are not games. For example, the meal delivery app, DoorDash, offers users rewards for completing certain tasks such as placing a certain number of orders or referring friends. These rewards include discounts on future orders or even free meals.

DoorDash generated impressive growth as a late entry to the takeaway app market partly through its gamification design

DoorDash’s reward system has been successful in increasing user engagement and revenue. In 2020, the company’s revenue increased by 226% year-over-year, due in part to increased user engagement and retention.

In conclusion, multi-tiered reward systems are a powerful gamification strategy that can increase user engagement and revenue in revenue-generating apps. By offering users incentives for completing specific actions, app developers can motivate users to take more actions within the app and increase revenue through increased user activity.

If you would like to know how gamification could drive engagement and increase revenue from your app then get in touch.

Justin Eames
Blog Author:
Justin Eames
Justin is fish in a bottle’s CEO and Head of Innovation. He demystifies digital product development and helps organisations design for success.

The year ahead in tech innovation