June 29, 2024
Gamification

How Businesses Can Leverage Gamification to Improve Customer Engagement

What is it?

Gamification refers to applying game design elements and game principles in non-game contexts to improve user engagement and motivation. Some key elements of funwareinclude points, levels, virtual badges or status, leaderboards or tables to showcase progress, challenges and rewards. The main objective of applying funware techniques is to use psychological aspects of game design like engagement, problem-solving, achievement, competition and feedback to motivate and influence behaviors.

Using Points, Levels and Badges

One of the most common funwaretechniques used by businesses is awarding points, levels, and virtual badges or status symbols. Gamification Points can be given for tasks completed, tasks completed well, referrals made, or purchases. These points contribute to the user’s level, with higher levels unlocking new features or status. Badges are awarded for specific achievements or milestones reached. Seeing points, levels and badges accumulate motivates continued engagement.

Creating Challenges and Time-bound Goals
Setting specific challenges or goals with time limits keeps people engaged and coming back. For example, challenges like completing a certain number of tasks within a week or making referrals by a deadline give a sense of progression, competition and urgency. These small, achievable challenges reinforce the desired behaviors more effectively than open-ended engagement. Challenges can also be set between individuals or teams to foster competition.

Displaying Progress on Leaderboards
Publicly displaying users’ points, levels or rankings on interactive leaderboards significantly boosts engagement. Seeing one’s name on top motivates people to keep performing better. It taps into intrinsic human needs for achievement, status and social comparison. Dynamic leaderboards where positions keep changing avoids stagnation and maintains interest levels. Users continuously work to improve their ranking or defend their top spot.

Providing Immediate Feedback
Timely feedback is very important in funware to keep users informed about their performance and progress. Notifying users immediately through push notifications, emails or on-site messages whenever they gain a level, collect points, complete a challenge or earn a badge creates a sense of achievement and reward. Feedback also helps course-correct if needed to maximize engagement. Lack of feedback leads to drop-offs.

Examples of Gamification in Business

Here are some examples of how businesses are leveraging funware:

– Frequent flyer programs by airlines use miles as a reward currency that can be accumulated over time for redemptions like upgrades or free flights. Status levels depend on miles earned in a year.

– E-commerce sites provide points for shopping, writing reviews or referring friends that can be redeemed for cashback or gift cards. Customers are motivated to browse more frequently and for longer durations to accumulate points faster.

– Streaming platforms like Netflix profile users’ engagement heatmaps and tailor challenges to their tastes – like watching 5 movies from a particular genre in a month. Completing challenges unlocks new features or recommendations.

– Fitness trackers and health apps use steps/minutes of activity as the currency to mark daily/weekly goals and move up levels over time. Achievements and social leaderboards encourage continued usage of devices and apps for better health outcomes.

– Content platforms incentivize user-generated content with a points-based reputation system visible to the community. Top contributors get featured or highlighted to encourage quality over quantity.

– Financial services introduce gamified savings plans where milestone-based deposits unlock matched savings amounts. Visual trackers of progress towards goals aid in long-term behaviour change.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it