Gamification: what is it and how can it boost customer engagement?

As businesses put gaming elements into marketing campaigns, consumer products and online applications, customer engagement and loyalty increase

CREDIT: This is an edited version of an article that originally appeared on Business News Daily

Gamification is the application of game-playing elements to nongame environments which allow social media users to earn rewards for everyday activities such as ordering coffee or watching a movie.  

Gamification provides businesses with a wealth of customer behaviour data and valuable insights into customer activities. This information is part of the big data stream that can help businesses improve operational practices and identify new marketing opportunities.

Checking-in for rewards

Gamification helps businesses offer their customers rewards and these come in a variety of ways, from earning a badge for checking-in to an event or gaining a higher standing on a virtual leader board; friends and total strangers can be the opponents.

Gamification introduces a competitive edge to everyday life and also creates more customer engagement. One popular gamification app is Foursquare, which allows users to check-in to locations that they’re visiting, from popular restaurants to more everyday locations, such as parking garages and hairdressers. By checking in often to certain places users can earn badges or become the ‘mayor’ of a location, if they check in enough times. Starbucks, for example, offers special deals for people who check-in on Foursquare.

The main benefit of gamification is increased user engagement. If the person is having fun they are more likely to retain information. Gamification also allows for more practical applications of tasks; instead of simply reading about an activity or subject, you’re participating in the learning process and feedback is provided in real-time to inform the user if they are performing well or not.

Competition is another benefit of gamification. Many of us strive to be the best – with gamification, you’re motivated to outperform your competitors which makes you work harder to achieve optimal results, and the final motivator is rewards and prizes. 

Gamification platforms can offer real-world prizes for a job well done and many people desire the feel of winning something. Are there any ways you can bring this concept into your sales strategy?