The ‘old’ Loyalty programs

You fly a mile, you earn a mile. Fly 1,000 miles, earn 1,000. After 100,000 miles…hurrah…you are Silver Level. Keep on flying! 1,000,000 miles here I come. Earning loyalty points are the corner stone of customer retention of many companies: airlines, railways, car manufactures…the list is endless. It must be a winning concept, right?

 

Unfortunately, Reward and Loyalty programs tend to be disengaging and linear affairs. Unless you are George Clooney, and spend more time in the sky than on the ground, it is unlikely that you will reach Superman status with an airline anytime soon. Also, the frequency of interaction within these programs is quite limited. Only after you have flown (once a month, once a quarter), will you notice any impact, and the rewards are quite predictable and known: a new badge, more points, perhaps a new level or a tiny discount.

 

The new loyalty programs: enter Octalysis

In the old days car manufacturers made most their revenue on selling cars, and the occasional car maintenance. Two or three touch points during a customer lifespan. Not much to build on in terms of a loyalty journey now is it?

 

However, the mobility sector and many other industries are rapidly changing. In the future car companies like Volkswagen Group, will generate less and less revenue from selling cars. The profit margin on electric cars is even slimmer than combustion engine vehicles, so they need to come up with another way to retain revenue.

Soon, most of their revenue will come from selling mobility services. Insurances, repairs, on the road Food and Beverages, non car mobility…the list is endless. Your car will just be the platform to sell these services, on a daily basis.

 

To go from a once-twice only customer to a daily user of your services, however, you need to generate a gripping user journey that motivates users to want to interact with your platform on a daily basis. Driving your car needs to become a journey that leads you to mobility sales “touchpoints” in a way that is fun, engaging and profitable for users and company alike.

 

To reach this kind of high ROI engagement, Volkswagen Group reached out to The Octalysis Group to completely design their new reward and loyalty program. A program that is built for the future. A program that makes the mobility journey along recurring touchpoints a fun and rewarding path. Enter the fully first fully gamified Reward and Loyalty Program in the Car Manufacturing Industry ever. Designed by Octalysis.

 

Global Reveal during Gamification Turkey

Volkswagen Group and The Octalysis Group jointly presented the new reward and loyalty program (called BONEO) during the keynote speech for Gamification Turkey in Istanbul in November 2018. Have a look below and find out more about this world premiere!

BONEO is now launched as pilot program in Austria, and will be expanded worldwide in the coming years.

 

Stay tuned for design details!

In the next post on this blog, we will share with you how the BONEO gamified design evolved and what is the behavioural science basis for its current design.

 

In addition we will explore what is still in store for this program. We have many features that we will integrate in the current BONEO app that will revolutionise the Volkswagen Loyalty Program even more and will blow you away. Promise!

 

If you want to know how we can help your company create high ROI digital engagement/gamification, contact Joris Beerda via joris@octalysisgroup.com