Role of Gamification in Shaping Customer Retention Behaviour in Food Delivery Applications

Abstract

Delivery apps have become an integral part of our life due to the ease of using them. However, retaining consumers in the highly competitive industry has become increasingly difficult due to the lack of any barriers preventing consumers from shifting to a competing app. While discount vouchers may entice consumers, they do not guarantee that consumers stay loyal to the brands. The current study attempts to explore the influence of gamification on consumer retention in food delivery applications. Three classes of gamification include transactional elements (flash sales, cash back, and voucher code), progressive elements (membership level, and wallet credits), and achievement elements (badges and challenges). The analysis will explore relationships among these gamification elements as well as their hierarchy using Interpretive Structural Modeling (ISM). It will demonstrate how the use of various gamification elements helps engage consumers, attracting them first and then encouraging them to stay. Finally,
recommendations based on the research findings will provide guidance for developing effective strategies for customer retention in the case of Zomato and Swiggy.