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ENGlossary: customer frequency, gamification and retail gaming explained simply
This glossary explains the key terms around customer frequency, gamification and retail gaming in brick-and-mortar retail. Each entry gives a clear definition, so you can quickly place the concepts and judge them for your business.
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Brick-and-mortar retail
Brick-and-mortar retail refers to the sale of goods through physical stores, as opposed to pure online retail. The growing importance of e-commerce leaves brick-and-mortar retail with the challenge of establishing its relevance anew for younger, digitally shaped audiences.
More on this in the blog: Why physical retail isn't losing to e-commerce, but to irrelevance
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Customer activation
Customer activation refers to measures that move a customer from passive interest to active action, such as visiting a store or taking part in a promotion. Gamification is considered an effective means of customer activation because it combines a concrete call to action with an emotional reward.
More on this in the blog: How do you use gamification in marketing?
Customer frequency
Customer frequency refers to how often customers visit a physical store within a given period. Declining customer frequency is considered one of the central problems in brick-and-mortar retail, as it is directly linked to revenue and to the relevance of a location.
More on this in the blog: Why classic foot-traffic measures work less and less well
Customer loyalty
Customer loyalty describes all the measures a company uses to strengthen its relationship with existing and new customers, in order to encourage repeat visits and purchases. Customer loyalty can be built monetarily, for example through discounts, or emotionally, for example through experiences and playful incentives.
More on this in the blog: What does the term customer loyalty mean?
Customer loyalty without discounts
Customer loyalty without discounts refers to loyalty strategies that are not based on price reductions, but on emotional, experience-led incentives. This approach reduces dependence on discount campaigns and protects margins, while building a deeper emotional relationship with the brand.
More on this in the blog: Why the answer in retail isn't more discounting · Why in-store rewards bring customers back
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Digital ecosystem in brick-and-mortar retail
A digital ecosystem in brick-and-mortar retail refers to a standalone digital environment that motivates customers to visit several physical stores, independent of any single retailer. Unlike a classic loyalty app, such an ecosystem is not tied to one company, but connects several locations and brands through playful mechanics.
More on this in the blog: Why physical retail needs a digital world of its own
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Gamification
Gamification refers to transferring game-typical elements such as points, levels, quests or rewards to non-game contexts. In retail, gamification is used to motivate customers towards repeat visits and actions that go beyond the purchase itself.
More on this in the blog: What does gamification mean?
Gamification marketing
Gamification marketing is the targeted use of playful mechanics within a company's marketing strategy, in order to generate attention, interaction and recurring contact with a brand. Unlike classic discount campaigns, gamification marketing relies on emotional rather than monetary incentives.
More on this in the blog: How do you use gamification in marketing?
Gamification tool versus real mobile game
A gamification tool usually adds individual playful elements such as point systems or badges to an existing app or website. A real mobile game, by contrast, is a standalone game application with continuous game mechanics, in which the physical store visit is a fixed part of the gameplay. The Retail Gaming Solution platform belongs to the second model.
More on this in the blog: Is this still gamification, or is it already a mobile game?
Gaming in retail
Gaming in retail describes the use of full game mechanics to lead customers into physical stores. The approach differs from simple digital bonus actions in that the store visit itself becomes part of a game experience.
More on this in the blog: What is Retail Gaming and why does it matter more for retail?
Generation Z in brick-and-mortar retail
Generation Z in brick-and-mortar retail refers to the challenge of getting a younger, strongly digitally socialised audience to make physical store visits. Classic loyalty programmes increasingly reach this group less well, while playful and mobile formats meet with far higher acceptance.
More on this in the blog: How do you reach Gen Z in physical retail? · Why younger audiences don't use loyalty apps
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In-store reward
An in-store reward is an incentive a customer receives only through a physical visit and interaction in a store. In-store rewards differ from online discount codes in that they are tied directly to the physical visit and its verification, for example via a dynamic QR code.
More on this in the blog: Why rewards you can only redeem in store bring customers back
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Loyalty programme
A loyalty programme is a system with which companies retain existing customers through points, tiers or perks. Loyalty programmes are typically aimed at a single company's existing customers, which distinguishes them from open ecosystems that connect multiple locations.
More on this in the blog: Why younger audiences don't use loyalty apps
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New customer acquisition
New customer acquisition refers to all the measures a company uses to open up new audiences it has not served before. Classic new customer acquisition often happens through discounts, which drives high costs and rarely leads to genuine emotional loyalty.
More on this in the blog: Why new customer acquisition in retail keeps getting more expensive
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Pilot project
A pilot project is the first, clearly defined test phase in which a retailer uses the Retail Gaming Solution platform under real conditions at one or more locations. The goal of a pilot project is solid proof of impact before any larger rollout.
More on this: How a pilot project works · Why retailers have to go first with a new platform
Process
The process describes the structured path along which a retailer is guided from first contact to active use of the Retail Gaming Solution platform. It includes the needs analysis, the technical integration at the point of sale, and preparing the team for the start.
More on this: The process, step by step
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Retail gamification
Retail gamification refers to the targeted use of playful mechanics in the retail context, in order to positively influence customer behaviour such as visit frequency or interaction. Retail gamification differs from general gamification through its clear focus on physical retail as the destination.
More on this in the blog: Gamification in retail: why playful mechanics are getting more interesting for retailers
Retail gaming versus loyalty app
Retail gaming and loyalty apps take different approaches. A loyalty app usually retains a single company's existing customers through points and perks. Retail gaming, by contrast, is a standalone game ecosystem that leads new, often younger audiences into physical stores, independent of any existing customer relationship.
More on this in the blog: What is Retail Gaming, and why does it matter more for retail? · Why younger audiences don't use loyalty apps
Want to place Retail Gaming in context for your store?
In a 30-minute introductory call we'll work through how the terms in this glossary fit together for your locations.
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The key terms – answered briefly
What is customer frequency?
Customer frequency refers to how often customers visit a physical store within a given period. Declining customer frequency is considered a central problem in brick-and-mortar retail, because it is directly linked to revenue and to how relevant a location is.
What's the difference between gamification and Retail Gaming?
Gamification transfers individual game-typical elements such as points or badges to non-game contexts. Retail Gaming is a standalone mobile game with continuous game mechanics, in which the physical store visit is a fixed part of the gameplay.
What is retail gamification?
Retail gamification is the targeted use of playful mechanics in a retail context, to positively influence customer behaviour such as visit frequency or interaction. It differs from general gamification through its clear focus on physical retail as the destination.
How does Retail Gaming differ from a loyalty app?
A loyalty app usually retains a single company's existing customers through points and perks. Retail Gaming is a standalone game ecosystem that leads new, often younger audiences into physical stores, independent of any existing customer relationship.
What is a digital ecosystem in brick-and-mortar retail?
A standalone digital environment that motivates customers to visit several physical stores, independent of any single retailer. Unlike a classic loyalty app, it is not tied to one company, but connects several locations and brands through playful mechanics.