Could gamification work for your business?

Some of the most memorable marketing campaigns are successful because they launch using a new medium or concept. And the newest and most exciting development in the marketing world right now is gamification.

The term was coined by Tim Chang of global funding heavyweight Norwest Venture Partners. It describes the broad trend of employing game mechanics to non-game environments. The idea is to add gaming elements to tasks and processes that are ordinarily tedious to make them engaging for consumers.

Broadly speaking, gamification aims to integrate game dynamics to a website, online content or campaign in a bid to drive participation and ultimately, awareness of your brand.

Those who have heard of gamification usually think of FourSquare, which is a technology that enables people to check in and share where they are with their friends. There’s also Farmville, which is an online game platform that connects players on seven continents.

Why you need to know about gamification

Don’t be fooled into thinking that gamification isn’t well understood enough to worry about just yet, because the predictions are that it will be a major player in marketing campaigns within the next 12 months.

For a start, there is growing interest from people wanting to learn the ropes, according to Emero Learning, which offers an introduction to gamification for IT professionals wanting to forge a career in this specialised area.

CEO Ivanka Menken says gamification is alive and well in the Australian culture.

“It’s integrated so well with our daily lives, it just connects so we don’t seem to notice it as being gamification. Like the Woolworths app that sorts your shopping cart by aisle and gives you rewards and savings. Or the traffic sign that puts up a big smiley face for you when you drive within the speed limit. Or the serial box that entices you to get on to their site and play games,” she says.

And technology research company Gartner predicts that a gamified service for consumer goods marketing and customer retention will become as important to companies’ marketing departments as Facebook and Twitter. It also predicts that 70% of Global 2000 organisations will offer at least one gamified service in less than three years.

Jodie Sangster, CEO of the Australian Direct Marketing Association predicts that gamification will be a significant marketing medium within the next one to two years. A simple gaming element added into a marketing campaign could bolster loyalty among consumers, she says.

“It’s also possible to add offline elements to gamification. If used well, it can be very good for driving visitation to retail stores by offering rewards over the counter,” she says.

Jon Holloway is the digital strategy director at Sydney advertising agency The Works. Australian brands are generally interested in the concept of gamification, but many are still unsure how to apply it to their marketing, he says.

“Gamification isn’t yet a part of the Aussie vernacular, but it will be soon as the ambition to get involved grows among marketers. It’s early days, but we know that there will be a few brands keen to come out strong to revolutionise gaming in the near future,” Holloway says.

Brands using gamification

Global brand Nike “gamified” exercise back before many others when it launched Nike+ back in 2008. More than 1.8 million runners have since logged onto the website to capture the distance they have run, pace and calories burned using a GPS sensor connected to their iPods. Nike rewards users if they reach a personal milestone.

Here in Australia, there is a smattering of marketers cautiously dipping their toe into gamification. And while high set-up costs make it prohibitive for SMEs, costs will reduce reasonably quickly, experts say.

The Commonwealth Bank leapt into the space in August this year when it launched an online simulation tool for budding property investors.

Dubbed Investorville, the tool helps demystify property investment, including simulating ongoing costs.

Mark Murray, general manager, Commonwealth Bank consumer marketing says Investorville helps break down common misconceptions and show the practicalities of property investment.

“The really beneficial part of Investorville is that users can, in the true sense of the word, try before they buy. The properties and data are reflective of the Australian property market and the types of properties available,” Murray says.

The RSPCA has also tried to give consumers an insight via its work via its Facebook game called RSPCA Rescue Shelter. The game tasks the player with building and running their own animal shelter, including caring for sick, injured and abandoned animals.

Colin Cardwell, CEO of the creator of the game, Sydney’s 3RD sense, said social games have shifted online game-play to a far wider demographic.

“Over half of all Facebook users play Facebook games and more than 40% of time spent on Facebook is playing games,” Cardwell says.

“When you combine that desire with the altruism of contributing to the essential work of an organisation like the RSPCA, the potential is obvious,” he says.

How it can build loyalty inside your business

Gamification can also build loyalty within a business by encouraging employees to stay connected and engaged online.

But approach with caution, warns Paul Goldston, head of ROI for search engine marketing firm Reload Media.

“For example, if your company decides to create a points or achievement system, there will inevitably be high performers and low performers,” Golston says.

“It’s really important that a system like this is set up in a way that no one is discouraged to the point of giving up or experiences a reduction in job satisfaction. It’s an issue we’re currently wrestling as we scope out our upcoming system. How do you create a system that everyone will buy into and will continue to engage with, without being too discouraged with their results?”

One solution, he says, is to heavily integrate instant gratification techniques like progress bars, novelty awards and points and hidden achievements.

“Another solution is to reset any leader boards or points on a weekly basis so that no one can ever get too much of a lead in the organisation,” Golston says.

What makes a good game?

Businesses trying to engage Gen Y should consider gamification, because this generation craves instant gratification, according to one of the first specialised gaming companies in the local market, One Fat Sheep, which has an office in Melbourne. However people in their 30s and 40s are also keen gamers when it’s relevant, Carl Pavletich of the New Zealand office of One Fat Sheep says.

“The key is to build tactics within the game to engage the consumer. You want to create a recognition culture within the game through rewards that show someone’s progress.”

Pavletich emphasises that strategy is key.

“Gamification isn’t a band-aid for marketing. You need a clear strategy from the outset to make it work. There needs to be a clear purpose.”

But getting a professional to create a game for you isn’t cheap. Pavletich estimates a campaign to cost upwards of $50,000. But like all things, costs will come down in time.

US gamification firm Bunchball has written a white paper on the subject. In it, it recommends including game mechanics such as levels and points that indicate players have reached a milestone. Additionally, challenges, trophies, badges and achievements, virtual goods where people can spend their points, leader boards, competitions and rewards can also make a game challenging and satisfying.

But gamification isn’t something that should be tackled without a clear strategy, Pavlevitch says.

Businesses should approach the creation of a game for their marketing with caution, he warns.

“Businesses need to understand that 25% of the process is about creating the game engine, and that 75% is about getting the strategy right in the first place,” Pavletich says.

The next steps:

Bunchball recommends that businesses consider a few points before embarking on the gamification process:

• Is the product compelling? Gamification is only a wrapper around your core offering and works best when turning an already exciting, attractive product into a richer, more participatory one.
• What is the context? Where will your audience discover your game and does this connect a real-world experience with an online or mobile application?
• What is the timeframe? Gamification should be thought of as an extended process, and the most exciting games offer an experience that unfolds over time. Gamification is a long-term strategy, not a launch-and-forget-it one.
• Time to market? How soon do you need to gamify your site or application? Do you have the resources and what sort of expertise do you have in-house to make this happen?
• What is success? It is most important is to have a clear sense of what your business goals are and how you’ll go about determining if you’ve achieved them.

Source: Gamification 101: An introduction to the use of game dynamics to influence behaviour, Bunchball, 2010.