We’ve watched with interest as Loopt, FourSquare, and Gowalla experiment with games to incent interaction.  But one wonders whether the game is needed because the content is lacking?  In other words, what else do you get out of “checking-in” besides checking in?  It’s no wonder that we’re starting to see discounts, coupons, and recognition bolster the game model.  Along these lines, we’ve become interested in customer loyalty programs and their success at achieving their intended goals–customer recognition, increased customer interaction, and increased customer loyalty.

We thought this article on poorly conceived customer loyalty programs was terrific!  We agree, that there is a real risk that a loyalty program will engender loyalty to the program, not necessarily the company or the brand.  After much thought, we’ve developed a hybrid model with elements of gaming and customer recognition.  In essence, we have two programs, one where some of our most active users can publicly and informally compete for bragging rights, and another where we publicly recognize our outstanding users for their roles in helping us achieve our corporate goals.

We decided to use social media and published thank you’s on users’ Facebook walls to publicly recognize them for their loyalty and support.  We also included a gift certificate from Amazon.

Customer Recognition to Increase Brand Loyalty

Shortly after these were posted on customer’s walls, there was a bump in site traffic and downloads indicating that our customers’ friends appreciated our customer appreciation.

Simultaneously, we published a leaderboard  because we noticed that it encouraged competition among users who care about and enjoy a little competition.  Below is the first leaderboard.  No prizes are awarded, just bragging rights.  We’ll be watching over the next few months to see how the different programs work independently and together in helping us help our users enjoy the product and recommend it to their friends.

Welcome to the April 2011 ChimpIt Leaderboard!

As an active Chimper, you have soared through the ranks of commoners and have landed a coveted spot on our whimsical leaderboard. Through a mysterious calculation, your Chimping has been scored and we have bestowed you with meaningless Rank, Level, and Title.  Some of you have even managed to attain a Level and Title above your Rank.  Well done, you clever Chimpers!  Keep on Pimpin’ da Chimpiin’ and don’t worry yourself over the “points”– they are for entertainment purposes only.  Thanks for being a good sport and a good customer.

We hope you continue to enjoy Smart WiFi and ChimpIt!

– Less Networks ChimpIt Team
www.chimpit.com