Why gamification is win-win for businesses and customers
Despite the term “gamification” being defined nearly two decades ago, it’s only recently become a successful reality for businesses, with many brands taking advantage of it in the past five years. Its adoption since 2010 has beaten all expectations after a slow start, and thanks to this sudden rise in popularity, the gamification market is expected to grow 48 per cent by 2019.
The concept offers brands the chance to better engage, understand and retain customers by applying game-like elements such as challenges and scoring to everyday activities, as well as rewarding valuable actions with badges, points and more.
Driving Desired Behaviours
With gamification, the main objective isn’t for a business to turn its entire digital property into a game; rather, it’s about incentivising the behaviours that are most closely aligned with the organisation’s goals. For example, if a brand is trying to increase time-on-site in order to boost CPM rates, it can give users points simply for viewing more pages. On the other hand, if a business is looking to generate brand awareness, it can offer special badges to users who share the most content or products with their social networks.
Turning these types of behaviours into competitions or cause for reward with gamification gives consumers an incentive for taking the desired actions. To make the most of a gamified environment, a brand should reward members for any “action of value” across its websites or mobile applications, but other ideas for scoring include:
- Joining live events
- Posting comments
- Writing reviews
- Participating in polls
Optimising User Data
With every click, point gathered or achievement earned, participants are actively sharing information about themselves with a brand. Not only is there an opportunity to collect more data, but the data collected through gamification is also more accurate: 51 per cent of consumers agree that if a layer of competition were added to everyday activities, they would pay more attention to their behaviours.
When consumers participate in gamified environments, their actions are particularly meaningful, supplying businesses with high quality insight. These detailed data points can help guide future marketing campaigns across channels like email, advertising and more. Brands can use the information they collect via loyalty programmes to see which gamified activities motivate customers to convert, and further incentivise these actions.
Rewarding Brand Loyalty
Brands can reward customers in many forms, including points, badges, leader board rankings, discounts and free merchandise. However, one thing is certain: recognising and rewarding customers means greater retention and revenue. In fact, statistics show that companies that offer rewards card programmes see 46 per cent higher customer spending.
Gamification can make the customer feel valued. Giving rewards such as free merchandise for reaching a certain level on a mobile app, or offering a 25 per cent discount for writing an honest product review not only increases engagement, but also stimulates feelings of exclusivity and membership. These result in increased conversion rates and lifetime brand loyalty.
Improved Lead Scoring
Gamification also provides an opportunity for lead scoring techniques to deliver valuable customer insight. B2C companies can implement a lead scoring strategy to track the engagement levels of their customers. By assigning values to particular interactions, just like in B2B lead scoring, B2C brands can better gauge how likely an individual consumer is to convert.
For example, imagine a publisher assigns ten points for every article shared and five points for every comment left. It is then easy to determine that a user with a score of 100 points is more engaged (and more likely to subscribe to premium content) than someone with a score of 50 points. On the same note, if 80 per cent of shoppers who share products from an eCommerce company’s website go on to make a purchase, then a high score/value can be assigned to that action to help better measure consumers’ likelihood to convert.
Building lasting customer relationships is vital for any brand. As consumer attention continues to become increasingly difficult to command, and engagement becomes the new standard for conversion, understanding how gamification works can truly make a difference for a business.
By: Richard Lack, Director of Sales EMEA, Gigya.