Gamification: How to Climb the Ladders and Avoid the Snakes
Games are everywhere.
By 2025, the value of the global gaming industry is projected to top $250 billion, and there are more than 2.5 billion players worldwide right now.
Our smartphones bring us instant digital entertainment anyplace, anytime. Virtual and Augmented Reality (VR/AR) are no longer science fiction, but science fact. Facebook, duly renamed as Meta, is keen to sustain interest in the development of its version of the metaverse.
It seems like the whole world is escaping to new digital realms. But how can you benefit from
the boom – however the metaverse will evolve? One way is through gamification. In simple terms, gamification means building game-like elements into users’ interactions with a brand – usually digital, but offline too. Until recently, gamification was mainly focused on turning everyday workplace tasks – such as inputting data or making sales calls – more fun and engaging for employees. This often brought mixed results, since those who enjoyed games improved their performance, while those who didn’t fell behind.
A few industries, namely wellness and telecom, had integrated gamification as
part of their toolbox for achieving some specific strategic objective (reducing churn and/or
increasing spend per customer) These days, however, we’re seeing gamification evolve into an outwardly focused value proposition in its own right, built to attract customers or engage with them more deeply in a variety of industries..
The great advantage of gamification as a means of market engagement is that the “product”
sells itself. When it works, customers come for the game, but stay for the brand or product
behind it. That’s why it provides significant potential benefits for firms who can use it
strategically – provided, that is, they do know how to harness its power.
Gamification can feature in a wide range of apps, products, and services – and in the near future, it’s almost certain to be bundled with AR and VR in the metaverse. (Indeed, Microsoft CEO Satya Nadella has wryly admitted that the metaverse replicates things that videogames have been offering “forever.”)
However, the business end of gamification is far from a game. Making it work can be a major challenge – even for major firms with deep pockets, or well-established digital brands. If you make poor decisions up front, you can easily sink significant time and resources into an initiative that never gets off the ground. Or, more insidiously, you might build something that seems popular and engaging – but behind the scenes, it’s not actually bringing you any solid business benefit.
In this white paper, we explore what gamification is and share key findings from our detailed research into what marks out the successes from the failures. Crucially, we are taking a strategic perspective, looking not just at the mechanics of the games themselves, but also at the broader business context to which they contribute.
Read the full paper here.