GAMIFICATION
TECHNIQUES ARE
INCREASINGLY
USED IN REWARDS
AND LOYALTY
PROGRAMMES
TO ENGAGE
PARTICIPANTS, WRITES
STEPHEN TIMM.
LET’S
PLAY
I
nsurance provider Discovery Health has been
able to bring down the cost of premiums and
increase the rate at which members exercise by
an average of more than 25% since September last
year, by using various gamification techniques on
its new Active Rewards programme.
Vitality Active Rewards allows members to set
their own goals for a given period. On achieving
these, they are able to access certain rewards –
such as a free smoothie or coffee – or opt to donate
their points to a charitable cause. “The gamification
behind it is that people are given a goal, and the goal
84 R E WA R D S & L O YA LT Y S A
GO
closes the ring,” explains Craig Nossel, head of
the insurance company’s rewards programme,
Vitality Wellness.
He says that, in addition to incentivising healthy
behaviour, the Vitality programme has lowered
insurance premiums, thereby making the company
more competitive in the market.
The basis of the programme, which has been in
existence since 1998 and today has 1.1 million adult
members, relies on simple behavioural economics –
namely, that people respond to certain incentives.
Members can also use their points on health
foods, healthcare products and health checks,
and various rewards such as movies and local
THE BASIS OF THE VITALITY PROGRAMME,
WHICH HAS BEEN
IN EXISTENCE SINCE 1998, RELIES ON SIMPLE BEHAVIOURAL ECONOMICS – NAMELY, THAT PEOPLE
RESPOND TO CERTAIN INCENTIVES.