I was recently asked whether gamification could be of use to a company. My short answer was "yes, if done right".
So why do some say that gamification is heading into the trough of dissolutionment? Why are there not many more case studies of incredible gamification success by major companies?
My thoughts, with reference to the use of gamification by utiities, are below...
You've most likely heard or even uttered the latest 'it' term out there for marketers: Gamification. But what does it truly mean? Is it a fad or is it here to stay?
Defined as the “process of using game concepts and mechanics to engage users and change behavior,” gamification is, at its core, a simple concept with huge potential for business.
In fact according to Gartner, 70% of Global 2000 organizations will have at least one gamified application by 2014.
The video game industry is worth more than $100bn worldwide, so it's no surprise that businesses are using gamification to try to boost sales.
The idea is that by adding gaming elements to the sales process, such as small challenges and rewards, you can increase customer loyalty and advocacy.
As in every game or competition, the participants have to be motivated by a worthwhile reward. It’s also true that the greater the reward, the more you can ask people to do to earn the reward.
Last year Gamification CEO Gabe Zichermann said that the reward customers most valued was status above their peers. His justification was people are already used to being rewarded with additional titles and status while playing video games.
Obviously gamification isn’t necessarily suited to every company, as it could end up undermining the brand values.
But it can also reap huge rewards. So here are six examples of brands using gamification in ecommerce...
Gamification isn’t a new concept. Businesses have been trying to increase engagement by introducing game mechanics into their marketing for a few years now.
One of the most obvious examples is Foursquare, which has developed its offering from a social game into a local search engine as it moves towards monetisation.
But can gamification be applied to all business models?
During a keynote at TNW 2012 Gamification CEO Gabe Zichermann suggested that companies must first understand what it is about video games that engages consumers.
Every year, digital marketers are delivered a fresh collection of new buzzwords, and one of the hottest in recent memory is 'gamification.'
Gamification, defined simply, is the addition of 'game mechanics' to a service. The rationale behind gamification is equally simple: by adding gaming components to a service, its operator can make the service as addictive as, say, Farmville.
Gamification creates unique opportunities for small businesses to create innovative loyalty programs that are on par with large brands.
Gamification is not new to social media, but it seems to be one of the key terms for 2011 with presentations, reports and analysis making claims about the proportion of brands that will have 'gamified' in the next few years.
There is a real danger of confusing this trend with social gaming (Farmville and the like), and of thinking that it's all about brands making things more fun. The real benefit of gamification is about understanding how users behave, what motivates them, and using techniques that reward them for doing things that ultimately help you achieve your aims.
Social Games like Farmville attract more active players than top TV shows in America have viewers. If engagement (recency, frequency, duration, virality and ratings) is factored in, it becomes even more obvious that social games are the new mass market medium.
The key to their success lies not only in the power of the Facebook platform, but also in games' motivational design focus and clever business model. While the prognosis for TV advertising may look increasingly grim, companies big and small are leveraging the techniques of social games to energize their brands.
This process is called Gamification, and it promises to bridge the gap between diverse interactions' utility and social games' fun and engagement.
There’s no denying it. Gamification is hot. We talked recently
with Gabe Zichermann, entrepreneur and author of “Game-Based Marketing,” about
how fun and gaming techniques are permeating every aspect of marketing, and
what it means for measurement.
As multichannel commerce becomes commonplace, it’s more important than
ever to focus on long-term engagement and coherence, creating a uniform,
satisfying customer experience across every platform.
Recently, Gamification has become an increasingly important part of this
mix, using game mechanics to enhance UX and guide user behaviour.
it’s done well, the rewards can be impressive; boosting engagement and
brand awareness as well as vastly increasing direct conversion,
shareability and repeat business.
But what exactly do we mean when we use the term? It’s important to
remember that gamification is a blanket phrase which can relate to
multiple levels of deployment.
Here’s a quick roundup of some points you should be aware of if you
are considering gaming as a marketing tool.