Benefits and Pitfalls of Gamification for Consumer Marketing

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Benefits and Pitfalls of Gamification for Consumer MarketingGabriel Gheorghiu - June 14, 2012Share on facebook Share on twitter Share on email More Sharing ServicesPrinter FriendlyE-Mail Article

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Other articles written by Gabriel Gheorghiu:

Dassaults Consumer Experience Management, Virtually Yours

Business Process Simulation Technology from Lanner

Siemens Product Development Solutions for Process Industries

What Is Gamification?In a nutshell, gamification applies concepts used in the design of computer and videogames to business, in order to attract and retain people. These techniques can be appliedboth inside the company (e.g., to facilitate employee collaboration or to encourage themto use software solutions in their daily tasks) or outside (e.g., for customer-facingactivities such as sales, marketing, and customer service).In this article, I describe how gaming techniques can be used for customer-facing

activities. Some forms of gamification have been used for years, such as onlinecommunities that recognize and reward their most active users with titles or other tokensof appreciation (points, stars, etc.). Some more recent techniques aim to make the userexperience fun, so that users spend more time on a Web site where they are exposed toadvertisements.Why Are Companies Experimenting with Gamification?The goal of gamification is engagement, just like for gaming, where the idea is to makepeople want to play more games and encourage them to do it more often. By engagingprospects and making them come to your Web site or join your online communities, youare more likely to turn them into loyal customers.

As for existing customers, the mistake many companies make is to take them for grantedand stop engaging them, as they are already buying their products or services. In essence,they only want to focus on turning prospects into customers. But by using gamification,you can continue engaging existing customers and renewing their interest in yourproducts and services, which will help make them more likely to keep buying from youagain and again.Gamification techniques also aim to engage influencers, which are experts, journalists,analysts, etc., which may never buy your products or services, but may have an impact onyour reputation as a company, thus indirectly affecting sales. Engagement will provideinfluencers with the information they need to accurately talk or write about your productsor serviceswhen that happens, their followers or readers will want to know more about

you products and services.But any type of engagement would not be effective if the quality of your offerings is poorgamification cannot and should not be used to cover your weaknesses, but to highlightyour strengths as a company.

Benefits of GamificationWith the tremendous success of social media and the disinterest of Generation Y in staticinformation from Web sites or press releases, engagement is key to keeping prospects and
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customers interested in your offering. Using gamification, you can make engagementstickier than traditional marketing campaigns. People will come back for more becausegamification makes their interactions with you fun and challengingand thereforeappealing and attractive.Another advantage of gamification is that it affords the opportunity to measure the results

of your engagement efforts. You can see who spent how much time online or which arethe users that interacted the most with other members of the community. This informationis not only used to reward participants, but also to analyze the effectiveness of yourgamification initiative.Gamification also allows you to have more control of whats being discussed about you,not through censorship, but through interactions, as you can not only readily respond tonegative feedback and share positive messages, but also encourage other users tocontribute. Loyal and happy customers, influencers and, in fact, anyone that findsinteracting with you attractive, will surely help you build a good reputation, as well asaddress issues that may affect your image. Happy users will also spend some of their timeproviding feedback and even new ideas on how to improve your offering.

Finally, gamification can be used to educate customers, which will make them betterunderstand your offering and how its different from similar products or services. Forinstance, we all know that electric cars are good for the environment, but if you create afunny and interactive game explaining to people why this is important, they are morelikely to trust you, as, for one thing, you took the time to do more than just claim to dowhat everyone in your market is already doing.Pitfalls of GamificationBut gamification can have its pitfalls, which can be caused by a misunderstanding of itsscope and a superficial implementation of its principles. This may result in initiatives thatonly you may find fun and engagingyour customers wont. In order to avoid that, makesure to avoid the following mistakes.Turning all or most interactions into a game will capture the full attention of your users,and they will ignore everything else. People having fun when visiting your Web site orjoining online communities is only the first in a series of steps that is needed to run asuccessful gamification initiative. They also need to get to know your company and get tobe interested in its offering.Gamifying the wrong thing, in a wrong way, or at the wrong time may result in yourgamification initiative not resonating with your users. It could even fail or backfirealtogether. A good example of this is the Qantas Twitter competition, which waslaunched soon after the company faced fierce criticism regarding the way it dealt withinterruptions caused by unhappy unions.Keep in mind that gamification attracts people who are also using social media a lot, so ifyou fail and disappoint them, theyll surely share their negative feedback online and yourimage may end up being damaged. To avoid this, make sure that not only the employeesresponsible for gamification are prepared and motivated, but also your claims can besupported by facts and customer testimonials.

Conclusion: Make Sure to Tie Your Gamification Initiative to Your Sales and MarketingStrategy
http://www.reuters.com/article/2011/11/22/us-qantas-idUSTRE7AL0HB20111122http://www.reuters.com/article/2011/11/22/us-qantas-idUSTRE7AL0HB20111122http://www.reuters.com/article/2011/11/22/us-qantas-idUSTRE7AL0HB20111122


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It is important to understand not only what gamification is and how it works, but also thatit must be aligned with your overall strategy to engage and attract customers. And justlike any valid strategy, you need to set clear objectives up front and design yourgamification program to meet them.Furthermore, you gamification objectives should be aligned with your business

objectives, which is not always easy to do. For instance, selling more or having morecustomers is only a good thing if you can manage it properly. I recently heard a story of agym that created some kind of gamification exercise to get people to come on premiseand make use their memberships. It worked so wellthat members started using thefacility so frequently that many had to wait for machines and other gym offerings tobecome available. The untoward end result was that many customers ended up beingfrustrated. The gym realized, after the fact, that what it actually wanted was for customersto pay their signup fees but use the facilities rather infrequently.So, if you havent already, start with defining your business objectives and how you planto achieve them. Then come up an overall company strategy to create and executebusiness processes that will involve employees, partners, and customers. Gamification

should only be considered after you have clearly defined business objectives andimplemented business processes to achieve them.Some of the work youve done to establish business objectives and implement businessprocess will help you determine whether gamification is a good idea for your company.For instance, you should have a pretty good idea of your customer demographicstheirtheir location, age, education, etc.,which can help you decipher whether they would beresponsive to gamification. Also, when creating and implementing business process, youwill understand which employee in your company is more likely to help with agamification initiative.In conclusion, a gamification initiative will be successful when aligned with not onlyyour companys objectives and business processes, but also other initiatives for acquiringand maintaining customers.

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ways-to-bounce-back-16560/http://www.technologyevaluation.com/research/articles/enterprise-financial-application-software-how-some-of-the-big-erp-vendors-stack-up-16552/http://www.technologyevaluation.com/research/articles/enterprise-financial-application-software-how-some-of-the-big-erp-vendors-stack-up-16552/http://www.technologyevaluation.com/research/articles/collaborative-commerce-erp-crm-eproc-and-scm-unite-a-series-study-oracle-16520/http://www.technologyevaluation.com/research/articles/collaborative-commerce-erp-crm-eproc-and-scm-unite-a-series-study-oracle-16520/http://www.technologyevaluation.com/research/articles/nortel-and-clarify-was-there-ever-synergy-enough-to-support-this-marriage-16429/http://www.technologyevaluation.com/research/articles/nortel-and-clarify-was-there-ever-synergy-enough-to-support-this-marriage-16429/http://www.technologyevaluation.com/research/articles/a-case-study-and-tutorial-in-using-it-knowledge-based-toolspart-2-a-tutorial-16388/http://www.technologyevaluation.com/research/articles/a-case-study-and-tutorial-in-using-it-knowledge-based-toolspart-2-a-tutorial-16388/http://www.technologyevaluation.com/research/articles/a-case-study-and-tutorial-in-using-it-knowledge-based-toolspart-1-decision-support-discussion-16387/http://www.technologyevaluation.com/research/articles/a-case-study-and-tutorial-in-using-it-knowledge-based-toolspart-1-decision-support-discussion-16387/http://www.technologyevaluation.com/research/articles/i2-now-serving-b2b-suppliers-16386/http://www.technologyevaluation.com/research/articles/i2-now-serving-b2b-suppliers-16386/http://www.technologyevaluation.com/research/articles/how-great-is-great-plains-manufacturing-offering-did-somebody-say-microsoft-16369/http://www.technologyevaluation.com/research/articles/how-great-is-great-plains-manufacturing-offering-did-somebody-say-microsoft-16369/http://www.technologyevaluation.com/research/articles/sct-corporation-means-ebusiness-for-process-manufacturing-16368/http://www.technologyevaluation.com/research/articles/sct-corporation-means-ebusiness-for-process-manufacturing-16368/http://www.technologyevaluation.com/research/articles/where-is-erp-headed-or-better-where-should-it-be-headedpart-3-ebusiness-and-midmarket-shakeout-16365/http://www.technologyevaluation.com/research/articles/where-is-erp-headed-or-better-where-should-it-be-headedpart-3-ebusiness-and-midmarket-shakeout-16365/http://www.technologyevaluation.com/research/articles/where-is-erp-headed-or-better-where-should-it-be-headedpart-2-product-architecture-and-webbasing-16362/http://www.technologyevaluation.com/research/articles/where-is-erp-headed-or-better-where-should-it-be-headedpart-2-product-architecture-and-webbasing-16362/http://www.technologyevaluation.com/research/articles/eai-market-consolidation-continues-with-peregrine-acquisition-of-extricity-16348/http://www.technologyevaluation.com/research/articles/eai-market-consolidation-continues-with-peregrine-acquisition-of-extricity-16348/http://www.technologyevaluation.com/research/articles/enterprise-impact-simulation-making-it-happen-16340/


6/15

Making It Happen |IT Services E-Procurement |An Overview of the Knowledge BasedSelection Process |Knowledge Based Selections | Enterprise Impact Simulation Alliances- At The Core Of EIS | Enterprise Impact Simulation An IT Revolution In The Making |New Dimensions in EC and SCM Part 5: E-Procurement for Process Improvement |NewDimensions in EC and SCM Part 4: Using E-Procurement to Leverage Volume |New

Dimensions in EC and SCM Part 3: E-Procurement Can Broaden the Supplier Pool |NewDimensions in EC and SCM Part 2: The Efficiency Gains of E-Procurement |NewDimensions in EC and SCM Part 1: The Benefits of E-Procurement |Accenture (neeAndersen Consulting) Marries New Business Model to Make its Mark|e-Procurement IsNot Electronic Purchasing | Hummingbird Smells Nectar In The Corporate Portal Market|Andersen Gives Yantra a Vote of Confidence |Ten Key Legal Concerns in E-CommerceVentures and Contracts | MicroStrategy Manages Your Customer Relationships And ItsOwn |Digital Business Service Providers Series: Market Overview |Rational EmphasizesWeb Site Development Content Management |Web Testing Has Changed the TestingLandscape |Manugistics Lays Groundwork For Talus Integration |Peregrine Flies In TheFace Of Conventional Wisdom | We Shall Be Giant |Infrastructure Management

Wunderkind Divides And Integrates |Plumtree Fuels Growth With New Corporate PortalProduct |NetGenesis Predicts The Future From Mouse Trails |Lets Be Frank: It Was AVery Good Quarter For E-Procurement |Now Andersen, Tomorrow Accenture, Theyvegot a lot of Selling to do | GE GXS: Part and Parcel of B2B Exchange |AC Ventures andSOFTBANK Venture Capital Announce GameChange |Texas Instruments Tells WarStories At i2 Planet | eMachines to Ship Appliance | Symix Systems Front-Steps IntoGreener e-Commerce Pastures |i2 Will Come Out Ahead In Kmart Deal |Whats Upwith Computer Associates? |Has SAP Found Magic Formula (One) To Learn The RopesOf Marketing? |Whats in a Name? | Technology Hardware Maintenance-Acquiring andManaging Cost Effective Service |Clarus Sprinting or Going the Distance? |IBMServer Line Redrawn | Is Web Success Necessary for CEO Survival? |Now the Minnowsare Eating the Minnows |J.D. Edwards Touts Leadership in Collaboration and Flexibility-- There Seems to be Some Notable Functionality Too |Onyx Thinks ASP OpportunitiesAre A Gem |i2 Technologies Lives Life In The Fast Lane | Demantra Secures MoreVenture Financing | Is Baan Showing Signs of Life After Death? |i2 e-Business StrategyServices Not For Everyone |Informix Decides to Start Analyzing Websites |DoubleClickMerger Good News For Privacy Advocates? |Commerce One Selects Entrada SoftwareFor Affiliate Program | Microsoft Kills a Flock of Birds with One Stone |CandleReleases New Command Center App for IBM MQSI 2 |Provia Software Rises To TheChallenge | They Know When You Have Gas |Oracle How to Disappoint Analysts byDoubling Profits |Ross Systems Ends Year On a Sour Note and Braces Itself ForSurvivors Game |Syncra Systems Helps Kimberly-Clark Clean Up |Walker Propelledby Winds of Change |Enterprise Intelligence Tools Tame Business Knowledge Glut |Will Oracles Freebie Shot Hurt (Or Only Graze) Siebel? |Commerce One: First SAP,then Microsoft. But What About Clarus? |Broadbase Continues to Expand | Great Plains An SME Market Leader, But At What Cost? |Transmeta to Intel/AMD: Eat Our Dust |Great Plains ASP - Evolution, Revolution, Innovation | Razorfish: A Pure Play OfferingDigital Strategy |IFS Marches On, Although With a String of Losses | Siebel: GreatPlans for Great Plains |Strategy: What Digital Business Service Providers Mean WhenThey Say It |Commerce One Holds Announcement Festival |Ariba Holds
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Benefits and Pitfalls of Gamification for Consumer Marketing

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