PlayAbly Podcast Episode 34: Coupons to Connections: Gamified Promotions as the Future of Retail

Traditional discount codes are fading into the background—and customers are craving something more engaging. In this episode of the PlayAbly Podcast, we explore why static promos like “20% off” no longer cut it, and how brands are shifting toward experiences that are interactive, memorable, and wildly effective.

We unpack how retail gamification and ecommerce gamification are reshaping the way brands drive conversions, lower CAC, and increase customer lifetime value—all while creating shareable moments that feel more like entertainment than advertising. From AR treasure hunts to viral basketball games, today’s interactive promotions are rooted in psychology and backed by results.

You’ll also learn how a conditional rebate promotion structure allows brands—especially lean ecommerce teams—to run high-impact campaigns with no upfront costs.

Whether you're building for Shopify, launching a new DTC campaign, or rethinking your retention marketing strategy, this episode will inspire you to rethink what a promotion can be.

👾 Don’t forget to subscribe and check out how PlayAbly helps brands gamify the customer journey at PlayAbly.ai

Welcome to the PlayAbly Podcast, where we dive into the art and science of gamification, customer engagement, and driving conversions. 

At PlayAbly, we turn passive audiences into active customers through shoppable games and playable experiences that transform how brands connect with their customers. Book your free demo here.

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Transcript

Welcome back to the PlayAbly podcast – your go-to source for news, insights, and trends in retail and ecommerce. Today, we’re diving into a topic that is both timeless and rapidly evolving: discounts and promotions. For decades, discounts have been one of the core levers brands pull to drive sales. But let’s be honest—traditional discounts are losing their edge. Shouting “20% off everything!” into the void just isn’t cutting it anymore. In fact, studies show that 94% of promotional emails never even get opened. That means nearly all those discounts are just wasted effort. But there’s a fascinating shift happening—a transformation in how brands connect with customers. Interactive promotions—gamified, playful, and immersive—are changing the game. And according to recent research, these experiences generate nearly three times the engagement of traditional coupons. So, what’s driving this massive change? It comes down to basic human psychology. Our brains are wired to respond to play, anticipation, and reward in a way that’s totally different from how we process a simple discount code. Think about it: a coupon code sitting in your inbox feels transactional. But a scratch-off lottery ticket? A spinning wheel? A game where you “unlock” rewards? Those trigger your dopamine pathways—your brain’s reward circuits—making the process feel fun, engaging, and memorable. customers spend an average of 4.5 minutes engaging with interactive promotions, compared to just seconds scanning a traditional discount email. That extra time is invaluable—it deepens the brand relationship and creates experiences customers actually want to repeat. Let’s talk about some real-world examples. One of my favorites comes from the beauty industry. A cosmetics brand launched an augmented reality treasure hunt. Customers used their phones to search for hidden virtual products in their homes. When they found one, they unlocked exclusive offers. The results? A 340% increase in engagement compared to their standard email promotions. And the best part—customers spent an average of eight minutes playing. That’s eight minutes immersed in the brand’s world instead of ignoring yet another “15% off your next order” email. The discount wasn’t the point—the experience was. Another powerful example comes from a sports retailer during March Madness. They created a virtual basketball challenge where customers could shoot hoops on their phones. Every time someone shared their score on social media, it spread organically—friends wanted to beat the score, so they played too. This had a massive viral effect. The campaign dropped their customer acquisition cost by 60% compared to paid ads. In other words, not only did engagement skyrocket, but it also saved them serious money. This shows how interactive promotions don’t just drive clicks—they build community and virality, which is gold for any brand. Here’s something many people overlook: the data advantage of interactive promotions. With a coupon code, all you know is whether someone used it. But with an interactive campaign, you can track: How long someone played What types of rewards they’re most interested in When they’re most likely to engage Even whether they share with friends. What about brand alignment.? An outdoor gear company ran a sustainability challenge where customers earned rewards by logging eco-friendly activities, like biking to work or reusing gear. Players could share their activities, climb leaderboards, and unlock discounts based on participation. This wasn’t just a fun campaign—it aligned perfectly with the brand’s values and their customers’ lifestyle. Engagement was high, but more importantly, it deepened the brand’s credibility and trust. Customers felt like they were part of a mission, not just a transaction. So where is this all heading? I think the next big wave is going to be the fusion of AI, personalization, and entertainment-commerce. Imagine promotions that adapt in real time: If you breeze through a challenge, the next level gets harder—and the reward bigger. If you engage more at night, promotions hit your inbox or socials after dinner. If you’re into eco-conscious brands, your challenges might involve sustainability themes. We’re also seeing the rise of social shopping and gamified challenges on platforms like TikTok. For example, completing a branded TikTok transition might unlock a discount code. Suddenly, promotions are not just interactive—they’re content. They’re part of culture. And here’s the kicker: brands embracing interactive promotions are seeing a 32% increase in customer lifetime value. That’s not just about one purchase—it’s about building a relationship where customers keep coming back, because engaging with the brand feels rewarding. It’s not just commerce—it’s entertainment. It’s community. And that’s worth far more than the traditional “20% off” blast. But all this sounds expensive. Small brands don't have the money to buy the software or internally build these types of promotions. Sure and you can't pour money into these types of tools right now, in this economy, without knowing if they will work and work well. That's why PlayAbly only charges a small percent of each sale to run promotions like Buy Now, Win Later. We only get paid on sales we generate and we take all the financial risk when it comes to giving rewards to customers. We provide the dopamine for your customers. So are the days of discount codes over? Not entirely. Discounts will always have their place. But the future of promotions isn’t about making discounts bigger—it’s about making them smarter, more meaningful, and more fun. The brands that thrive will be the ones who evolve from transaction to interaction. Because people may forget a discount, but they’ll always remember how a brand made them feel. And in this new era of retail, connection beats coupon. That’s it for today’s episode of the PlayAbly podcast. If you enjoyed this, subscribe, share it with your colleagues, and keep an eye on how brands are transforming discounts into experiences. Until next time, keep playing with the future of commerce.