Do you know that the global gamification market is predicted to reach a whopping $30.7 billion by 2025? Moreover, as per a report, about 70% of global 2000 companies use gamification in some way. That's right!
Gamification has become an increasingly popular technique in the world of business. By incorporating game mechanics and design into non-game contexts, you can drive user engagement, loyalty, and motivation, leading to increased revenue and profits.
This comprehensive guide walks you through What is gamification ?,How is gamification used in business?, What are the benefits of gamification for companies? and How do you create an effective gamification strategy?
Benefits of gamification in business
Increased engagement and motivation
Gamification can increase engagement and motivation among your employees and customers. Engaged and motivated people are more likely to be productive and loyal to your brand.
For example, to train its new employees on medical products, AstraZeneca used a game-based training program, which resulted in a 95% learner completion rate and 97% engagement rate.
In addition, what proves the program's efficiency is the fact that the majority of learners participated in the program outside of working hours.
As per a report, gamification can increase employee engagement by 60%, and companies with engaged employees are 22% more profitable, 21% more productive, and have 10% higher customer satisfaction rates.
Better learning outcomes
Gamification can be an effective tool for teaching new skills and concepts. It can make learning more enjoyable and increase retention rates.
According to a study, students who were educated with gamification showed better performance by up to 89.45% compared to other students. Duolingo is an excellent example of this.
It is a gamified language-learning platform that uses game mechanics like points, badges, and streaks to motivate you to learn new languages. This is designed to be fun and interactive, allowing you to stay engaged and motivated to continue learning. As a result, Duolingo is now one of the top language-learning apps with over 37 million active users per month.
Increased customer loyalty and retention
Gamification can help you build stronger relationships with your customers by creating a sense of loyalty and engagement. Starbucks uses its 'Starbucks Rewards' program which is gamified to encourage customers to earn points and reach different levels of rewards, resulting in an increase in revenue by $2.65 billion and a 25% increase in customer loyalty.
Moreover, according to a report, companies that use gamification see a 47% rise in engagement and a 22% rise in loyalty.
Increased sales and revenue
Gamification can also lead to increased sales and revenue. You can increase your bottom line by incentivizing desired behaviors like purchasing or sharing on social media.
McDonald's Monopoly game is one of the most popular gamified marketing campaigns, which started in the late 1980s. The game is designed to reward customers with 'tickets' to purchase food items. These tickets can then reserve a space on the Monopoly board.
The goal is to collect a full set of tickets to win a prize. Through this, McDonald’s was able to increase its sales by 5.6% in 2010 in the USA, as many people were buying the food items impulsively just to get tickets.
Enhanced brand awareness and recognition
Gamification can also help you enhance your brand awareness and recognition. By creating memorable and enjoyable experiences for your customers, you can increase brand loyalty and word-of-mouth marketing.
In 2019, Casper, a mattress company, strategically placed a series of rebus riddles in New York subway trains as a part of their marketing campaign. The solutions for these riddles and a downloadable puzzle coloring book were available on their website.
Despite its simplicity, the campaign caught the attention of many potential customers, making it an excellent example of how gamification can attract customer interest.
Steps to Design an Effective Gamification Strategy
Define Your Goals
Before you begin to design a strategy, it is important to understand what you want to achieve with it. What problems do you want to solve? What metrics do you want to improve? And how can gamification help you achieve those objectives?
For instance, you could use gamification to improve your employee productivity and engagement, reduce employee turnover, and increase revenue. By defining your business objectives, you can develop a strategy that aligns with your goals.
Understand Your Audience
The next step is to identify your target audience. Who will be involved in your program? Knowing your target audience helps you create an approach specific to their needs, preferences, and motivations.
For example, if you create a gamification program for employees, you must first learn what motivates them, their challenges, and what rewards they most value. Have an employee-centric approach.
Identify Game Mechanics
Game mechanics are the building blocks of a gamification strategy. They are the rules and systems that drive user behavior. You must identify the game mechanics that align with your goals and resonate with your audience.
If your goal is to increase customer loyalty, you can use a point system to reward loyal customers. For example, Sephora has a gamified loyalty program called Sephora Beauty Insider. It is a free loyalty program for customers in the US and Canada that allows customers to earn points on every purchase.
The gamified experience has increased customer engagement and higher sales for Sephora, with 80% of sales driven by the program itself.
Design Your Gamification Strategy
Once you have identified your game mechanics, it is time to design your gamification strategy. This involves creating a roadmap of the user journey, developing the visual elements, and creating a feedback loop to encourage continuous engagement.
There are several techniques, such as points, badges, leaderboards, progress bars, feedback, rewards, and social interaction, that you can use to motivate and engage your target audiences.
For example, Verizon Wireless rewards its users with badges and points when they engage with the site. This technique has helped them increase the browsing time of visitors by 30%.
Test and Iterate
Gamification is not a one-time process. You need to continuously test and iterate your strategy to optimize user engagement and drive success. This involves tracking metrics, analyzing user behavior, and changing your strategy based on data-driven insights.
Gamification has been becoming an increasingly popular technique in the world of business and for a good reason. It can be a powerful tool if you are looking to improve employee engagement, customer loyalty, and profitability.
But to create an effective strategy, defining your goals, understanding your audience, and identifying game mechanics are important. It is also important to set clear objectives, keep it simple, offer meaningful rewards, and continuously value and optimize your gamification strategy to achieve your desired results.
Undoubtedly, with the ever-growing demand for interactive and engaging experiences, integrating gamification into your business strategy can set you apart from the competition and elevate your brand to new heights. So why not level up your strategy and gamify your way to success?