Gamification Strategies and Customer Churn Reduction in Entrepreneurial Retail Firms: An Empirical Study of Millennials

This study investigates the impact of gamification strategies on customer churn reduction in entrepreneurial retail firms, focusing on Millennial consumers in Malaysia’s Klang Valley. Customer churn threatens profitability, particularly for emerging enterprises, and gamification has emerged as a potential tool to enhance customer engagement and retention. Drawing on the Self-Determination Theory, the study examines three gamified marketing interventions: membership programmes, contest rewards, and personalised discounts as direct predictors of churn reduction. A quantitative, cross-sectional research design was employed, using a structured questionnaire distributed to 180 Millennial consumers through purposive sampling. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4.0. Results indicate that all three gamification strategies significantly reduce customer churn, with contest rewards exerting the strongest influence, followed by personalised discounts and membership programmes. The model demonstrated moderate explanatory power and satisfactory predictive validity based on PLS Predict analysis. The originality of this research lies in its focus on customer churn as a direct behavioural outcome of gamification, rather than the more commonly explored mediators such as loyalty or engagement. Additionally, the study contributes to the evolving application of PLS-SEM by incorporating both explanatory and predictive assessments. The findings offer theoretical advancement and practical guidance for entrepreneurial retailers aiming to enhance retention through gamification-driven strategies tailored to the preferences and behaviours of Millennial consumers.