12 Jul

How Gamification Enhances Customer Engagement

How Gamification Enhances Customer Engagement

Gamification, as a term may be confusing for many as they might perceive it to be a mere activity of playing games. However, it is about utilizing the best principles and ideologies from gaming and behavioral economics to engage both customers and employees alike, and help them solve intricate problems by inducing a sense of competition and other motivational reinforcers.

Games played in childhood lead to harnessing various skills, and the idea of Gamification is inspired by those experiences. While preferences, commitment, motivation, and rewards are some of the primary attributes that are fundamental to the notion of games, they are also the key to the novel sophisticated applications of Gamification. For instance, sales personnel are rewarded on attaining their targets, for which they compete with each other to achieve those rewards. The urge for more competition and appreciation, both serve as real motivators and this methodology taps the underlying potential of the employee and engages them in a more enthralling way.

How does it work?

The methodology of Gamification works on the principle of engaging the natural instincts of people that urge them to compete and achieve more. It also productively exploits their love for challenges, adding a sense of pride and status with an accentuated yearning for rewards. Game-related statuses like leader-boards, hall-of-fame, badges, and rankings are used to encourage those who love competition, especially with their peers.

Gamification as an Industry

Companies are using this innovative technique to drive more engagement among customers and employees alike. Gamification is correlated to engagement, wherein it provides a sense of recognition and more fulfillment. For all customers who are willing to participate and come up with some great ideas that can improve your business, Gamification helps them to transform their level of engagement into a sense of enhanced pride and esteem. The more recognition, and mementos the customers get for their participation, the better is the level of commitment and loyalty towards the brand. Integrating coherent activities into their social platforms, CRM, and mobile apps is an ideal way companies can use Gamification to maximize at least two streams of engagement that include vivacity and creativity.

Increasing trend of Gamification

Many renowned organizations are turning to Gamification to improve the engagement levels, both internally and externally. The methodology has been a major success in maximizing work-related skills through interesting gamified tasks. It offers a common platform for both customers and employees to relate and adapt to each other.

Gamified by 2016

When organizations are in dearth of ideas that can make both their brand and offerings more exciting for customers, they can put Gamification to use to crowd-source some of the best ideas from the customers themselves. Gamified solutions can garner voluntary participation from customers who are willing to give their suggestions on products and brand improvement. Organization can benefit from the game mechanics that have originated through such brain-storming sessions. In return, companies can reward their customers to induce a sense of pride and loyalty for their avid participation.

For instance, a renowned Enterprise-Resource-Planning company used this concept of missions to encourage members to log in regularly. Members were encouraged to contribute quality content and provide feedback regularly and for which they were recognized as influencers and topic experts. Within a month, this Gamification solution provided staggering results as overall activity increased by almost 400% and community feedback grew by 96%.

Gamification will be the Primary Mechanism

There are many more real-world examples to prove the impact of Gamification on both productivity and customer engagement. The methodology offers a paradigm shift to the monotony of standard practices and keeps all the stakeholders excited, engaged and incentivized. It helps organizations to allow their customers to set individual goals for themselves, which they can achieve on their own terms. In return, they get a sense of achievement, which can go a long way in boosting the brand loyalty among customers.

Key Takeaways

  • Gamification is about utilizing the best ideas and concepts of gaming and behavioral economics used to enhance customer engagement.
  • Motivation and rewards are some of the fundamental attributes of gaming, which are used to create sophisticated Gamification applications.
  • The more recognition, and mementos the customers get for their participation, the better is their level of commitment and loyalty towards the brand.