The gamification revolution for channel partner engagement

Moving beyond traditional Loyalty programs

As Sneha Gokarn, CEO of Gallagher India, states, “Loyalty programs now build deeper relationships, offering value beyond transactions.”

Loyalty programs are no longer just about accumulating points and discounts. They're evolving into dynamic platforms driven by technology, offering personalised experiences and instant gratification.

Moreover, there is a lot of digital clutter and people do not associate with programs that do not give them a positive story to experience. This is where hybrid phygital engagement may be the norm for the future.

This transformation is reshaping how businesses connect with channel partners.

1.  Instant Gratification: The demand for instant rewards is reshaping loyalty programs. Consumers now expect immediate benefits, fostering a sense of accomplishment and reinforcing positive behaviours. This shift aligns with the modern consumer’s desire for quick and seamless interactions.

2.  IMPS Reintroduction: The reintroduced Immediate Payment Service (IMPS) has redefined expectations by allowing partners to send up to ₹5 lakhs instantly using just a bank name and mobile number, even on holidays. Its speed and convenience have made it a cornerstone of modern loyalty programs. This seamless transaction process strengthens loyalty programs by ensuring timely rewards.

3.  Gamification Advancement: Loyalty programs are incorporating gamification elements to boost engagement. With 90% of channel partners reporting increased productivity through gamification, it's clear that this trend is here to stay. India’s education sector, with its USD 624 million investment in AR and VR technology in 2023, is leading the way.

4.  Zero-Party Data Integration: Loyalty programs are leveraging "zero-party data"—information customers willingly share—to offer rewards that truly match individual preferences, deepening customer engagement.

5.  The power of AI: Data is key to modern loyalty programs. To unlock its full potential, businesses are turning to AI. Advanced analytics enable deep customer understanding, predicting preferences, and delivering hyper-personalized rewards. India's strong AI adoption and initiatives such as INDIAai (an initiative by Government of India) puts it at the forefront of this transformation.

6.  Hybrid Experiences: Hybrid events are transforming loyalty programs by merging physical and digital experiences, enhancing data collection and interaction with partners as well as consumers. This synergy between data, AI, and hybrid events is driving loyalty programs towards deeper customer engagement and long-term relationships.