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Digital Marketing

Gamification – the next big thing?

Sabrina Hanneman

Programmes have always existed, and people collect everything that more or less attracts their attention. Stones and shells, coins and stamps, and now, in the next instance, virtual goods and rewards. What we collect defines us – both to others and to ourselves.

By definition, "Gamification is the use of game-typical mechanisms outside of pure games, with the aim of influencing human behaviour."

It is obvious to leverage this effect economically. Around 180 million people currently collect miles as part of frequent flyer programmes. Loyalty programmes like these have existed for a good 30 years now. And what began with airlines or in retail has spread to board games and video games, and has now found new fertile ground on the web in general and in social media in particular.

Gamification certainly gained new hype with the Facebook game classic Farmville. Around 80 million people cultivated fields and collected monthly points on their virtual farm in 2011. Often, these are small acknowledgements, but they contribute significantly to user motivation and retention. It goes without saying that the data generated by this has always been used for the company's own marketing purposes.

The following example from Volkswagen in 2009 shows how to create the right incentives to encourage people to rethink. Specifically, the task was: Is it possible to get people to take the stairs instead of the escalator, and if so, how?

It's not always just about reward systems and customer loyalty itself, but also about problem-solving in real life. Too rarely do companies truly involve consumers and create brand experiences. The video shows that people's behaviour can be changed, provided the right incentives are offered.

According to M2 Research, the gamification market is expected to grow further to US$1.6 billion by 2015, with a further increase to US$2.8 billion projected for 2016. Already in 2011, approximately US$100 million was invested in gamification development.

We don't (just) play for fun

But what drives people to collect virtual rewards and accolades that often cannot be converted into real possessions and do not involve monetary compensation?

Game mechanisms work for the following reasons: motivation, challenge, a sense of achievement, and of course, fun. However, the latter – contrary to all expectations – is not the main argument. We play because we love challenges. And even more so, the sense of achievement that comes from successfully completing a task. Rules are central to this. These must be clearly communicated and, above all, fair. Otherwise, the fun will quickly cease. Sounds trivial, and it is. But this has always enticed people to interact, and now companies understand better than ever how to utilise these characteristics.

But what is needed to ignite enthusiasm? Essentially, playing is nothing more than learning. And how do we learn? Through challenges! We have a goal, we know the rules for achieving this goal, and we receive feedback for our participation. Ideally, positive completion is followed by a sense of achievement. This allows us to progress from beginner to expert to master, and to position ourselves with our skills among others. Through this, we gain recognition within a specific community, which increases the attractiveness of participation.

The Flow Experience

By connecting various channels and approaches, a special user experience can be enabled today, which in turn leads to prolonged engagement with the product, brand, or service and continuously increases commitment. Game and reward mechanisms are thus linked, which ultimately can also change purchasing and usage behaviour in the long term…

As early as 1975, Mihály Csikszentmihályi developed the Flow Concept, which in essence describes nothing other than the prerequisites for the flow experience and is being revisited today amid the gamification hype. But what is a flow experience? On the one hand, a challenge that requires one's own skills to solve a task, and furthermore, immediate feedback upon achieving the goal.

Conclusion

The hype will disappear as soon as game mechanisms are integrated as a matter of course. The game character will therefore no longer be explicitly emphasised and will be used by the user in a self-evident way. Gamification will then be embedded as a marketing strategy in companies' marketing mix, and online activities will be even more strongly linked to the real world.

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