PROPOSED GAMIFICATION STRATEGY FOR GARUDAMILES IN RESPONSE TO COVID-19 PANDEMIC

• Main Author: Argha Yuwana, Kemal
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57614
• Institution: Institut Teknologi Bandung

The loyalty program (LP) has evolved into a primary revenue generator. Despite the initiatives taken by Garuda Indonesia, the earning and redemption mileage transactions decreased by 70.56% in 2020. Such decline was due to the COVID-19 pandemic. One strategy to improve the loyalty program engagement is by applying gamification but the current GarudaMiles only have tiers and points system which means the degree of gamification is low. In response to that, this final project proposes to formulate the gamification strategy for the GarudaMiles to improve its attractiveness. This study applies a quantitative method approach with respondents who amounted to 1,880 through an electronic survey by Google form. As GarudaMiles’ business issue is to broader their market and increases the activity, the suitable strategy is a broad differentiation strategy. To do that, focusing on the value drivers is the most systematic approach that a company can take. Based on the business situation and GarudaMiles business issue, gamification should focus on product features and performance as the value driver. The target customers for GarudaMiles gamification are members in Silver to Platinum tiers which contribute to 80% total revenue of GarudaMiles. As for the target market, gamification should also consider the non-flight segment as it contributes 42% in 2020. The member segmentation that related to the gamification strategy based on this research is a simple game based on traveling, culinary, and activity players who prefer mileage, class upgrade, and tier upgrade as the reward. For the game feature, respondents chose reward, random reward, level, progress bar, and points as the main motivators in gamified GarudaMiles.