Gamification can be used to improve customer loyalty and engagement by implementing solutions like onboarding, creating a sense of yearn, rewarding customers, encouraging social sharing, and repeating the process. The document discusses how most websites only see median results of 1.5 visits per month and 5 pageviews per visit, showing users are neither loyal nor engaged. It presents gamification through a company called BigDoor as a solution, outlining their platform and growth, and detailing their four-part approach of onboarding users, creating yearn, rewarding customers, and encouraging social interactions to boost loyalty and engagement.