Most e-commerce brands spend heavily to acquire new customers, yet many lose them after just one purchase. Traditional loyalty programs offer points or discounts, but these often feel transactional and easy to ignore. That’s where loyalty gaming comes in.

Loyalty gaming is the use of game-like mechanics, such as points, levels, challenges, streaks, and rewards, within an e-commerce loyalty program to encourage repeat purchases and long-term engagement.

Instead of simply earning points in the background, customers actively participate by completing challenges, tracking progress, and unlocking rewards as they shop, refer friends, or leave reviews. This sense of progress and achievement keeps customers engaged not just for discounts, but for the experience itself.

In this guide, you’ll discover 10+ loyalty gaming ideas and strategies that e-commerce brands can use to increase repeat purchases, strengthen customer retention, and build lasting loyalty through engaging, gamified experiences.

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What You’ll Learn in This Guide

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• Loyalty gaming transforms repeat purchases into interactive experiences that build habit, motivation, and emotional connection with your brand.
• Game mechanics like progress tracking, badges, and streaks turn routine actions into measurable engagement opportunities for e-commerce stores.
• Personalized challenges and surprise rewards keep loyalty programs dynamic, ensuring customers return for the experience, not just the discount.
• Data from loyalty gaming helps you refine offers, segment audiences, and deliver more relevant rewards through automation and analytics.

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What Is Loyalty Gaming and Why Does It Work for E-Commerce?

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Loyalty gaming adds game mechanics to your loyalty program to make earning and redeeming rewards engaging. It links customer actions such as purchases, referrals, or reviews with features like points, levels, badges, and challenges. This turns loyalty into an active experience that motivates shoppers to keep participating.

Unlike iGaming, which involves gambling or real-money betting rewards, loyalty gaming is explicitly designed for e-commerce brands to influence shopping behavior and long-term retention. It also differs from broad loyalty program gamification, which describes the use of game mechanics in general. Loyalty gaming focuses on applying these mechanics directly to retail loyalty programs to drive repeat purchases and engagement.

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Why Loyalty Gaming Resonates with Shoppers

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Loyalty gaming works because it appeals to three primary motivators that shape human behavior. These motivators influence how customers respond to challenges and rewards.

The table below breaks down these motivators and their practical applications in loyalty programs.

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Research by the Wharton NeuroLeadership Institute (2024) found that gamification improves productivity by 15% by enhancing motivation through autonomy, mastery, and achievement. In e-commerce, these same triggers increase engagement, purchase frequency, and customer loyalty.

Once you understand the core mechanics, it’s essential to look at the psychological triggers that make loyalty gaming work.

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Key Behavioral Triggers That Drive Loyalty Gaming Engagement

The success of loyalty gaming depends on understanding what motivates users to return. These behavioral triggers activate the brain's reward centers, helping create loyalty experiences that feel both enjoyable and rewarding.

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Progress Tracking

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Customers stay invested when they can see how far they’ve come. Visible progress bars, milestone trackers, or tier indicators make each interaction feel meaningful. For example, customers who earn points for every purchase and see how close they are to the next tier are more likely to place another order.

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Competition

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Friendly competition encourages continuous participation. Small leaderboards, seasonal challenges, or limited-time contests motivate customers to stay active and engaged. Using tools like Nector, brands can automate these challenges and track participation in real time.

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Status Recognition

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People value recognition for their loyalty. Displaying tier badges or exclusive titles such as Gold Member or Top Reviewer validates customer effort. Public recognition through personalized messages, dashboards, or email campaigns strengthens emotional attachment to the brand.

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Rewards Anticipation

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Anticipating a reward can be as satisfying as receiving it. Streak challenges or goal-based tasks, such as “Shop twice this month to earn bonus points”, keep customers motivated. This ongoing expectation turns engagement into a habit.

Understanding the psychology behind loyalty gaming helps you apply these principles practically through proven strategies and gamified loyalty program ideas.

Suggested Read: How Smart Brands Are Redefining Loyalty to Drive Retention (2026 edition)

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10+ Loyalty Gaming Ideas and Strategies to Try

This is where you turn theory into action. The following loyalty gaming strategies show how to design reward systems that keep customers engaged, encourage repeat purchases, and make participation more fun. 

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1. Points-for-Action Systems

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Rewarding small, consistent actions keeps engagement steady. You can assign points for signups, reviews, referrals, or social shares. When customers see that every interaction earns value, they return more often.

Example:

• Sephora (Beauty Insider) rewards customers with points not only for purchases but also for writing reviews and engaging with the brand. By turning everyday actions into opportunities to earn points, Sephora keeps customers active between purchases.
• Result: Customers stay engaged even when they’re not buying, which increases repeat visits and long-term loyalty rather than one-time transactions.

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2. Tiered Loyalty Levels

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Tiered systems encourage ongoing participation by giving shoppers visible goals to work toward. When you show progress bars or badges, customers feel rewarded at every step.

Suggested Tier Names:

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Example:

• Sephora also uses tiered loyalty levels (Insider, VIB, Rouge) to create clear progression. Customers unlock better rewards, exclusive events, and early access as they move up tiers.
• Result: Shoppers are incentivized to consolidate spending with Sephora to reach a higher status, increasing annual spend and retention.

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3. Use Short-Term Wins to Build Long-Term Habits (Challenges & Streaks)

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While tiers reward commitment over time, challenges spark action right now. Limited-time goals encourage customers to return more frequently and form repeat behaviors.
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What these look like in action:

• “Shop three times this month to earn bonus points”.
• “Review two products this week for a reward boost”.
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Starbucks Rewards regularly deploys short challenges that award extra Stars for completing specific purchase patterns.

Why challenges work: They introduce urgency and routine. When progress is visualized in a loyalty dashboard, customers are more likely to complete the loop and come back for the next challenge.

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4. Turn Word-of-Mouth Into a Game (Referral Quests)

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Referrals feel more exciting when they’re framed as missions rather than requests. Assigning clear goals transforms passive sharing into an achievement-driven experience.
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Mission-style examples:

• “Refer three friends this month to unlock Silver status.”
• “Hit five successful invites to earn a premium reward”.
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Dropbox famously used this approach by rewarding both the referrer and the new user with extra storage space.

This structure turns loyal users into active growth partners, helping brands scale faster while keeping acquisition costs low.

Suggested Read: Best Referral Examples And Strategies For Success

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5. Keep Loyalty Programs Playful With the Unexpected Surprise Rewards

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Predictable rewards are safe, but surprises are memorable. Random bonuses and mystery incentives keep customers curious and emotionally invested in the program.
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Ways brands introduce surprise:

• Mystery rewards are unlocked after hitting a points milestone.
• “Spin-the-wheel” discounts for frequent shoppers.
• Random bonus point drops announced via email or app.
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Shopify reward engagement data shows that surprise incentives can increase click-through rates by up to 25%.

Surprises create delight, and customers feel noticed and appreciated, not managed by a system.

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6. Spin-the-Wheel or Scratch Cards

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Adding an element of chance creates anticipation during checkout. Spin-the-wheel or scratch card games let customers win instant rewards such as discounts, bonus points, or gifts. When implemented responsibly, these mini-games increase average order value (AOV) without making customers feel pressured.
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Implementation Tips:

• Offer limited spins per day or week to maintain fairness.
• Provide rewards in small, achievable ranges such as 5%, 10%, or 15% off.
• Use platforms like Nector to automate reward distribution and prevent duplicate participation.
• Display results instantly to keep excitement high and participation consistent.

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7. Let Customers Compete Together (Social Challenges & Leaderboards)

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Some customers are driven less by rewards and more by recognition. Social challenges work because they give people a visible way to participate, improve, and be acknowledged, without making the experience feel overly competitive.
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Lightweight competitions tend to perform best:

• Monthly “top reviewer” spotlights.
• Weekly sharing or activity goals.
• Limited-time challenges that reset often.
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Nike Run Club illustrates this balance well. Its challenges and performance rankings don’t just track activity; they turn individual runs into shared milestones. Users can see how they’re progressing, compare themselves with peers, and celebrate small wins along the way.

When done right, these social layers shift loyalty from a private transaction into a shared experience. Engagement feels less like “earning rewards” and more like being part of something, which is what keeps customers coming back and talking about the brand.

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8. Story-Driven Loyalty Gaming Campaigns

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Seasonal storytelling adds freshness to loyalty programs. You can theme challenges around holidays or product launches, giving customers a narrative to follow. This approach ties promotions, rewards, and community events into one unified experience.
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Practical Ways to Apply This:

• Run a “Winter Quest” where shoppers complete small missions, such as “Buy two winter essentials” or “Leave a review on your favorite cozy product.”
• Integrate the campaign across email, WhatsApp, and social media to maintain continuity.
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Story-driven campaigns help you connect emotionally with customers and keep your program dynamic throughout the year.

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9. Review-to-Reward Cycles

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Reviews play a significant role in building trust. Rewarding customers for sharing honest feedback motivates participation and creates authentic social proof. You can automate these cycles to ensure continuous engagement without manual follow-ups.
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Execution Ideas:

• Reward customers with points or coupons for verified product reviews.
• Integrate with platforms like Google Reviews to automatically collect and display reviews.
• Offer bonus points for photo or video submissions to encourage detailed content.
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This strategy generates user-generated content while reinforcing loyalty with every review.

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10. Milestone Celebrations (Birthdays, Anniversaries, First Orders)

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Recognizing personal milestones strengthens emotional connection. Sending a personalized message or reward during key customer dates shows that your brand values individual relationships.
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Ways to Apply This:

• Offer double points on birthdays or customer anniversaries.
• Send free samples or small gifts after the first or fifth purchase.
• Automate reminder emails to ensure timely celebrations.
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These gestures turn transactional relationships into emotional ones, encouraging repeat purchases through personalized appreciation.

Also Read: Boost Post-Purchase Loyalty Strategies

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11. Play Together, Win Together (Collaborative Loyalty Games)

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Some loyalty experiences shine brightest when they’re shared. Team-based programs give people a reason to connect and work toward common goals. Completing challenges as a group turns ordinary tasks into motivating, social experiences.
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Here’s how you could adapt it for your business:

• Create small groups or squads: Encourage customers to form teams, friends, coworkers, or fellow subscribers. Give them a shared dashboard that shows collective progress toward goals such as referral counts, purchases, or challenge completions.
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• Set shared milestones: Decide what group achievements unlock. For example, if a fitness brand sets a goal of 1,000 collective workout points per month, the entire squad could earn bonus rewards or an exclusive digital badge.
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• Reward contribution, not just completion: Make sure each member sees how their individual actions help the group reach the target. This keeps everyone motivated and prevents passive members from disengaging.
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• Highlight team success publicly: Showcase top-performing squads on social media or within your app. Recognition encourages healthy competition and social sharing, which can bring in new participants.
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Team-based systems combine cooperation and shared motivation, turning your customers into community advocates while maintaining strong engagement.

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12. Make Every Second Count (Time-Limited Power Rewards)

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Urgency can be energizing if it feels like an opportunity rather than pressure. Short-term rewards prompt immediate action and create excitement around the program.

For example:

• Double points for purchases within a 24-hour window.
• Early-access perks for seasonal launches or limited-time products.
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Gentle reminders, timely emails, push notifications, or WhatsApp nudges keep customers aware without feeling intrusive. By introducing scarcity and excitement, these mini-campaigns spark higher engagement and make the loyalty program feel fresh and dynamic.

Want to automate these loyalty games effortlessly? Explore how Nector can set up your first program in minutes → [Start a Demo]

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Tips to Keep Your Loyalty Gaming Program Engaging Long-Term

A loyalty gaming program needs regular updates and balance to keep customers active. If your program feels repetitive or overly simple, engagement will decline. The key is to maintain freshness and challenge without overwhelming users. The following practical actions help you sustain participation and improve results over time.

• Refresh Challenges Monthly: Rotate your challenges and streak missions each month to keep things exciting. For example, introduce a “Weekend Rewards Challenge” or a “Holiday Bonus Hunt.”
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• Test Reward Types and Point Values: Experiment with discounts, gifts, or exclusive access to identify which incentives your customers value most. Reviewing redemption analytics helps you find the right balance between reward cost and customer motivation.
  
  
• Celebrate Top Customers Publicly: Showcase high performers through emails, leaderboards, or social mentions. Recognizing loyal participants builds pride and encourages others to engage more often.
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• Monitor Participation Drop-Offs and Adjust Rewards: Track engagement metrics, such as challenge completions and referral rates, to identify when interest declines. Adjust your tasks or reward thresholds to maintain steady participation.
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• Balance Effort and Reward: Make your challenges attainable but not effortless. Customers should feel that each achievement requires consistent engagement. Properly balanced difficulty ensures that progress feels rewarding and keeps them returning.
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These steps keep your loyalty gaming program relevant and effective over time, helping you sustain long-term engagement and grow customer loyalty. Sustaining engagement also means avoiding common mistakes that reduce clarity, motivation, and overall program performance.

Suggested Read: 5 Stages of the eCommerce Conversion Funnel (With Tracking Methods)

Common Mistakes to Avoid in Loyalty Gaming

Even well-designed loyalty gaming programs can lose effectiveness if they are not structured carefully. Avoiding common mistakes helps you maintain clarity, fairness, and engagement. The following pitfalls are the most frequent causes of declining participation and lower retention.
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• Overcomplicating Point Systems: When earning rules are unclear or involve too many variables, customers lose interest. Keep point systems transparent and straightforward, such as “1 point for every $1 spent.” Use tools like Nector to automate calculations and display balances clearly within your loyalty dashboard.
• Ignoring Data on Customer Engagement: Failing to analyze participation metrics leads to stagnant programs. Regularly track engagement rates, redemption trends, and tier progress. Reviewing analytics helps you identify which rewards or challenges work best and which need refinement.
• Offering Rewards Misaligned with Customer Motivation: Generic or irrelevant rewards reduce program value. Ensure your incentives match customer preferences, provide beauty samples for skincare brands, or offer early product access for fashion shoppers. Personalized rewards maintain excitement and strengthen loyalty.
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A loyalty gaming program works best when it stays simple, data-informed, and personalized. Simplicity and personalization together create sustained engagement and long-term customer loyalty.

After understanding what works and what doesn’t, you can put these insights into action with Nector’s loyalty gaming tools.

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Build Loyalty Gaming Systems That Drive Repeat Revenue with Nector

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All the loyalty gaming strategies discussed in this guide can be implemented using Nector, a platform designed to help e-commerce brands build and automate gamified loyalty programs without operational complexity. 

Here is what you get with Nector indulgence: 

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Gamified Loyalty Programs

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Create points-based, tiered, and challenge-driven loyalty gaming programs that reward key customer actions such as purchases, referrals, and reviews. You can define earning rules, customize reward values, and display visual progress indicators, such as progress bars, tiers, and badges, to encourage ongoing participation.

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Referral Quests

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Turn referrals into structured loyalty gaming missions. Nector enables customers to share referral links via WhatsApp, SMS, or email while automatically rewarding both the referrer and the new customer. Built-in validation and fraud-prevention features ensure accuracy and fairness.

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Review-Based Rewards

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Automate review collection by rewarding customers for leaving ratings or feedback after a purchase. Integrations with review platforms allow you to generate authentic social proof while reinforcing loyalty through incentives tied to real engagement.

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Smooth Platform Integrations

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Connect Nector with your existing e-commerce and marketing stack, including Shopify, email platforms, and messaging tools. This ensures reward triggers, notifications, and loyalty campaigns stay consistent across customer touchpoints without manual intervention.

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Analytics and Optimization

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Use a centralized dashboard to track customer participation, reward redemptions, and engagement trends. These insights help you refine challenges, balance reward effort, and identify high-value customers so your loyalty gaming program continues to improve over time.

Many brands see real, measurable results with Nector. For instance, a leading baby care brand gamified signups, repeat orders, and referrals using Nector. As a result, 7.94% of total revenue came from loyalty-driven purchases, repeat customers increased by 28.43%, and 26.12% of referral goals were completed successfully. The platform’s automation and integrated tracking enabled the brand to scale its loyalty program while efficiently driving meaningful business outcomes.

If you are curious about how Nector can drive similar results for your brand? Try a free demo today!

Nector makes it easier for e-commerce teams to turn loyalty gaming strategies into scalable, automated experiences. With minimal setup and built-in ongoing optimization, brands can maintain engaging loyalty programs that drive repeat purchases and long-term retention.

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Final Thoughts! 

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Loyalty gaming turns shopping from a simple transaction into an engaging experience that customers genuinely enjoy. When customers track progress, unlock badges, or participate in missions, they begin associating your brand with achievement and excitement.

Take the example of a growing men’s apparel brand that used Nector to gamify their loyalty program. Over time, they saw their average repeat purchase rate triple, increasing by 317%, while loyalty-driven orders and coin redemptions grew significantly as customers became more active and engaged. 

That kind of growth doesn’t happen by chance; it comes from implementing systems that make loyalty feel rewarding and fun. And that’s precisely what loyalty gaming does when applied with the right tools.

Start your free Nector demo today to launch your own loyalty gaming program, set up points, tiers, challenges, and referrals quickly, and start seeing real results.