Transform Engagement with Gamification
Gamification describes the incentivization of people’s engagement in non-game contexts and activities by using game-style mechanics.
Key Takeaways
- Gamification is the use of game elements in non-game activities.
- Employing gamification can enhance customer and employee engagement, boost sales, and cut costs.
- Gamification may have some pitfalls, depending on how it is implemented.
Understanding Gamification
Gamification leverages people’s natural tendencies for competition, achievement, collaboration, and charity. Tools employed in game design, such as rewarding users for achievements, ’leveling up,’ and earning badges, are carried into the real world to help motivate individuals to achieve their goals or boost performance.
There are many examples of gamification. A prominent example is frequent flyer rewards programs offered by airlines. Measurable metrics of success from gamification include the level of engagement, influence, brand loyalty, time spent on an activity, and the game’s ability to go viral.
Gamification is essentially the incorporation of game-style incentives into everyday or non-game activities. Real-world activities are gamified to motivate people to achieve their goals. Frequent flyer programs, loyalty rewards points, and frequent shopper points are all good examples of the everyday use of gamification. In all these examples, customers are incentivized to keep ‘playing’ and accumulating points through ongoing consumption.
Not all examples of gamification encourage spending. Nike+ is an app that turns personal fitness into a game, encouraging users to exercise. Various nonprofits sponsor friendly competitive events (-a-thons) to boost charitable donations. Biological science progress has been advanced by encouraging gamers to fold proteins. Educational platforms can encourage learning through gamification by unlocking various levels and badges based on successful learning outcomes.
One significant avenue of gamification is in the workplace. By introducing game elements to a job, employers can help workers track their performance, set goals, and engage in friendly competition that enhances the working environment and improves business performance. It motivates employees to perform their best and provides them with rewards directly tied to their effort level.
Risks of Gamification
Gamification is effective because it leverages the same human psychology that makes games enjoyable. However, it also carries certain risks.
Choosing the proper mechanisms and metrics can be challenging. Since these are what participants will focus on, it is crucial that the game elements actually encourage the desired behavior. Poorly designed or implemented gamification can become a distraction from priorities, incentivize gaming the system, or lead to zero-sum or negative-sum competition. Any of these outcomes can result in wasted time and resources.
Games can also sometimes become notoriously addictive, similar to immersive video gaming and compulsive gambling. This raises possible risks when using gamification for commercial purposes. From the viewpoint of organizations that benefit from employees or customers developing an addictive compulsion to work or consume, this may seem like an advantage. However, for workers and consumers, it could be perceived as manipulative or exploitative, raising ethical concerns.
Related Terms: Game Theory, Behavioral Economics, Incentive Programs, Customer Retention, Employee Performance.
