How gamification can help telecom companies

By Arpit Sharma, Senior Manager, Technology Research and Advisory, Aranca

In a world where customer loyalty in the telecommunications industry is becoming increasingly unattainable, companies are faced with the pressing need to adapt and innovate to maintain relevance. Gone are the days of relying on traditional strategies to engage customers; the evolving landscape demands a more tailored approach. Whether large or small, established or emerging, telecom companies worldwide are grappling with the challenge of retaining both mindshare and wallet share among consumers. While investments in technologies have been made to personalise offerings, there is still a gap in effectively executing business strategies.

Personalisation, which includes what, when, and how," is at the center of current telecom marketing initiatives. This is where harnessing the power of advancement like artificial intelligence, machine
learning, data analytics, and so on helped the sector to make strides in understanding and anticipating customer needs. However, relying on mundane routines and predictable notifications, the execution of
personalised interaction often falls short. Therefore, to deal with the challenges and revolutionise customer engagement as well as loyalty, gamification emerged as a potent tool for the telecom sector.

Gamification in telecom: Key benefits
Improve customer engagement: Given the modern generation’s short attention span, it becomes challenging for the telecom sector to hold customer’s interest for a long period. This is where gamification emerged as a significant approach to enhance customer engagement. By incorporating gameplay elements into everyday interactions, telecom companies can make experiences more enjoyable and immersive for consumers. From rewarding users for completing tasks to creating interactive challenges, gamification adds a layer of excitement that traditional communication methods lack.

Drive customer behavior: Today, we are living in an era where change has become a constant thing. Thus, driving desired customer behavior requires more than just persuasive messaging. Gamification provides a unique opportunity to influence consumer actions by tapping into intrinsic motivations such as competition, achievement, and social interaction. Whether encouraging users to explore new features or participate in loyalty programs, gamified experiences can steer behavior in the desired direction.

Boost customer loyalty: Undeniably, gamification is all about fostering long-term engagement and loyalty among users. This is where telecom firms can foster a sense of belonging and loyalty among their customers by developing compelling experiences that speak to them on a deeper level. To achieve this, gamified loyalty programs, exclusive rewards, and personalised incentives can be employed to incentivise continued patronage and advocacy. As a result, by using these strategies, telecom companies can create a strong connection with their customer base that goes beyond just providing a service.

Gamification: Boon or bane for the telecom sector

Gamification is a growing trend that can help telecom companies boost customer engagement and loyalty. However, it must be implemented thoughtfully, or it can backfire and end up alienating customers. According to Markets And Markets, the gamification market size is expected to reach $30.7 billion by 2025 at a CAGR of 27.4%, which shows that this approach has a lot of potential.

As a result, to make gamification work effectively, telecom companies need to focus on delivering meaningful experiences that resonate with their audience. This requires ongoing innovation and careful execution to maintain the novelty and relevance of the gamified experiences. By doing so, telecom companies can forge deeper connections with their customers and gain an edge in a highly competitive market.

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