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The business value of gamification: Three pathways to new customer acquisition
Well-designed games can bring in new users, who may eventually become customers. This can lead directly to new revenue streams or boost interest and brand equity by association. In the second of a three-part series on gamification, here are three pathways to gaining new customers.
1. Offer tangible savings and rewards without facilitating social comparison
Why it works
- Tangible rewards bring in additional sales that are directly bundled with further tangible benefits.
- Excluding social comparison concentrates usersā motivation on extrinsic rewards.
- Digital loyalty programs that bundle purchases with points that can be redeemed for additional physical goods have great appeal.
- Games can be more enticing when they incorporate an element of chance or even gambling.
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2. Combine virtualization with tangible rewards
Why it works
- This approach allows for a more differentiated experience in which users compete in virtual arenas for real-world rewards (this is like winning prizes at a fair).
- Chance-based mechanisms can significantly increase interaction with the platform.
- Interacting with other āplayersā and competing for rewards can increase participation.
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3. Focus solely on social comparison and exclude both virtualization and tangible rewards
Why it works
- This strategy should only be pursued when the user goal is closely related to self-improvement (e.g., fitness or knowledge-based learning).
- As technologies mature, (digital) games and physical experiences start to merge; customers may begin their buying journeys on social media but still want an in-store, experiential element that they can share online.
- The in-store experience allows visitors to share directly to social media and unlock digital-only offers. The game thus has the potential to become a means to engage customers in the digital and physical realms at the same time.
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Key learning
A āone-size-fits-allā approach to gamification does not work for customer acquisition and retention. Different goals (acquiring customers, expansion, and refining market positioning) require different design elements and mechanisms. Begin by defining the strategic objectives: once you know these, give designers and engineers a clear brief to work to and choose the right KPIs to gauge success.Authors
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