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CHALLENGE
 series




    business
Can
win with
     ification?
Gam



            QUESTIONS IN MODERN MARKETING
CHALLENGE
                                series




“ Gamification: When the
  ‘mechanics’ engineered to
  make games fun are used to
  alter non-game structures and
  business processes. Through
  positive mental stimulation, the
  functional everyday processes,
  can be transitioned from the
  monotonous into the deeply
  engaging.
  Pomegranate, 2012
Wh  at’s this                                                                                 CHALLENGE

          about?
                                                                                                  series



issue all
Marketers and sales directors have                          interaction of people within non game contexts’

seen trends and ideas come and
                                                            Before we go any further it is important to clarify,
go. And they can be forgiven if                             gamification is not ‘game theory,’ nor ‘game
a degree of scepticism colours                              design’, these are both very different fields
                                                            as research will inform you. Additionally, you
their view of the latest marketing
                                                            will see me use the term ‘player’ more often
communications tools and new                                than user or viewer, as this helps promote
killer methods. Duncan Thomas,                              the difference in thinking around this subject.

founder and M.D. of Pomegranate,                            Finally, I am not a fan of the term of gamification
                                                            as I will explain later. However, for universal
explains why gamification is more
                                                            understanding we will use it today.
than tricks and gimmicks.
                                                            Gamification is a methodology established from

       The rise of digital media has seen a proliferation   the in-depth analysis of human psychology, in

       of ideas, channels and business models. Tactics      relation to gameplay and game environments.

       have emerged that have worked for some               Numerous studies have concluded that games

       brands, whilst leaving others bewildered, out of     trigger or intensify specific emotions, behaviours

       pocket, and with some explaining to do when          and actions, not synonymous with any other

       they have not got the results they anticipated.      activities. With the categorisation of the ‘game

       We have seen the rise of some new marketing          mechanics’ (which activities in a game,

       memes: Content Marketing, User Generated             influence which emotions), people are able to

       Content, Mobile Websites (WAP), Brand Theatre,       look at positive ways of harnessing the effect

       and Branded Content. Then came ‘Freemium’ –          for applications outside of games. Marketing

       and of course, the rise and rise of social media.    has been toying with various pieces for a while,
                                                            only businesses are now realising the potential

       Gamification, is another of these terms, being       impacts too.

       hailed by some as a game changer. The
       typical definition is ‘the use of techniques and     How successful is the games industry?

       mechanics derived from the understanding             Including hardware and software, the global

       of games and game play to enhance the                computer games business is now worth in




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    excess of US$25 Billion (NPD Group / Social            However, what unites people from
    Media Today, 2012), and in 2012 it is predicted        anthropologists and HR directors to marketers
    that social games alone – those played within          is a deeper understanding of the unique human
    sites such as Facebook, will generate more             emotions and characteristics that are activated
    than $6.2 Billion of revenue (TechCrunch, 2012).       by game play. For example, repetition, why does
    The UK computer games business is now the              a player return five times a day to religiously
    single biggest sector of the entire entertainment      carry out the same task, such as spraying fields
    industry. How big? With annual sales of £1.9           in Farmville, and what stimulates a person to
    Billion it is just under double the size of the        spend 140 hours a month collecting virtual
    UK music business (Entertainment Retailers             objects, like swords and gems in Warhammer?
    Association, 2012).
                                                           Things start to get really interesting when
    From free to play games such as Rovio’s                those questions are transferred out of games
    Angry Birds and Zynga’s infamous Farmville             worlds into business contexts. But what does
    generating multi-millions though advertising           gamification mean for businesses? A renowned
    and micro payments, to huge blockbuster                statistic is Gartners prediction that by 2015
    releases such as Call of Duty Modern Warfare           over 50% of Global 2000 organisations would
    (which sold 6 million units in its first 24 hours of   be using gamification within their innovation
    release) - there is no denying the success of the      processes, and that over 70% will use games
    gaming world at grabbing attention and making          mechanics and processes within their general
    consumers part with their cash.                        marketing and retention efforts.


                                                           Clearly business leaders need to take notice.


“
                                                           How can games methods and thinking be built
    By 2015 over 50% of Global
                                                           into brand plans? Can you believe the hype?
    2000 organisations would
                                                           And how can you win with gamification?
    be using gamification within
    their innovation processes,
    and over 70% will use games
    mechanics and processes
    within their general
    marketing and retention
    efforts.


                                                              QUESTIONS IN MODERN MARKETING                  4
So can you                                                                                CHALLENGE

          in using
                                                                                              series


really w
 Gami  fication?

Recently, marketing & collaboration                      from determining patterns of what attracts and
                                                         repels players, new archetype profiles and
consultant Andrew Armour of
                                                         ultimately enabled us to model the life of a social
Benchtone and business advisor &                         game.
leadership coach, Steve Hemmings
                                                         AA_ So it was a pure commercial product
of Realpoint Consulting met with
                                                         development?
Duncan Thomas of Pomegranate
and asked him ‘how can business                          DT_ Essentially, that is how it all started. We

win with gamification?’                                  wanted to understand ‘how did Zinga make £60
                                                         Million + out of Farmville?:’ ‘why did people get
                                                         addicted to it? What attracts spend on virtual
                                                         goods? We looked at the psychology and the
       Andrew Armour_ Duncan, how did you get
                                                         social behaviour, assessing a broad spectrum
       started in this whole area of gamification?
                                                         of resources like social conversations, user
                                                         data, activity workshops and focus groups. To
       Duncan Thomas_ We got started when we
                                                         validate our findings we also cross-referenced
       were commissioned to investigate the success
                                                         current research from areas like console and PC
       factors behind ‘social gaming’ – this resulted
                                                         games.
       in us spending about six months running some
       deep research studies using a range of methods
                                                         AA_ OK. So, is the use of games mechanics
       (quantitative, qualitative and ethnographic) to
                                                         another way of engaging the consumer?
       dig deeper into the factors that created both
       commercial success for the game makers, and
                                                         DT_ I won’t be purest but Gamification is not
       high levels of user engagement.
                                                         really about retail and consumerism, it is about
                                                         motivating people, enhancing engagement; in
       The research presented some powerful insights,
                                                         essence its about introducing fun into areas
                                                         typically devoid of it!



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           However there is of course an extensive list of   Unfortunately to date, the majority of consumer
           consumer marketing executions that testify to     cases citing the use of gamification amount to
           using gamification. Most of us will have been     using little more than the basic points, badges,
           hit with some form of gamed-up marketing          rewards and leaderboard devices. It is these
           campaign, with loyalty generating systems that    primitive and often naïve applications of ‘game
           range from British Airways’ Avios points, to      mechanics’ that influence people to dismiss
           simply stamping your Starbucks loyalty cards to   gamification as a fad or gimmick.
           get your free Latte.
                                                             AA_ What is proving gamification’s case for
                                                             business?


                                                             DT_ In the hands of skilled people like software
                                                             engineers, product designers and user
                                                             experience architects, gamification is emerging
                                                             as a powerful methodology with ever increasing
                                                             applications for business. When you have
                                                             companies like IBM, Accenture, Samsung, Pepsi
                                                             and even the US Government using gamified
                                                             techniques, you know you have to take notice.
Starbucks loyalty card (johnwise.com)
                                                             Look at it this way, if you could make your work
           More advanced applications reward ‘players’ for   as exciting as when you are in ‘play’, whether
           increased engagement, through i.e. sharing or     its sports, console games etc, how much more
           frequency of returns, examples such as Xboxes     fun would life be? Play and fun are words
           reward scheme (See link bit.ly/fBGeGK), or        not associated with many work environments,
           Swagbucks.com where you earn cash for your        until now. Systems and process designers
           reviewing brands’ content. Away from loyalty      are exploring a diverse range of applications,
           schemes, innovations such as Dennis Crowley       initially focusing on the environments where
           ‘s Foursquare, are evolving to provide a whole    monotony is a big risk, for example in call
           new way to promote leisure and hospitality        centres and data processing.
           locations; check in when you get there and        Game mechanics are also being extensively
           build your status to being the mayor, which In    introduced within the training and learning
           turn gains you rewards from that establishment.   development areas of large organisations.




                                                               QUESTIONS IN MODERN MARKETING                6
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    Various department types are actively testing        Jane’s studies show that practical learning can
    approaches from Secondlife and IBM’s 3D              be absorbed more deeply when using game
    virtual worlds, to the US Military’s serious games   mechanics. McGonical’s renowned example
    and Flip Learnings role-based scenarios. The         was used to promote social responsibility
    pharmaceutical and medical worlds particularly       around the use of energy efficient living (bit.ly/
    are closely looking at studies that use game         aDmAYR).
    mechanics in internal knowledge share
    platforms to promote collaboration and better        AA_ Are you confident this practice is
    team approaches to problem solving.                  sustainable then?


    We have seen pioneers like Jane Mcgonigal            DT_ In short, yes! Because there is nothing
    take the fusing of motivational techniques into      new in gamification; we haven’t ‘done a
    virtual environments to a whole new level. Jane      Darwin’ and uncovered a unique facet of
    has run test scenarios over long durations to        man’s behavioural evolution. We have simply
    really get under the skin of how far reaching the    created a neat wrapper for the bundle of human
    impacts on behaviour can be.                         instincts that have been ingrained in us for
                                                         1000’s of years. The primary human behaviours
                                                         we are now engaging in haven’t changed
                                                         massively; moreover they get provoked in new

“   We haven’t ‘done a Darwin’
    and uncovered a unique
                                                         and increasingly acute ways. Take jealousy,
                                                         it can occur simply because a colleague has
    facet of man’s behavioural                           achieved ‘Power networker’ status in Linked
    evolution. We have simply                            In, my aggression can be riled just because

    created a neat wrapper                               my profile is not as complete, or I can’t show
                                                         as many followers for my Twitter crowd. These
    for the bundle of human
                                                         are basic examples of how our emotions are
    instincts that have been
                                                         constantly being provoked, and one of reasons
    ingrained in us for 1000’s                           why systems designed to harness and nurture
    of years.                                            behaviour states, can impact widely in the work
                                                         place.


                                                         This clearly demonstrates that it is not our
                                                         behaviours and emotions that have changed,
                                                         just the ways in which we express them.




                                                           QUESTIONS IN MODERN MARKETING                  7
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To me this proves that the need to apply               social innovation channel,’ then you are starting
gamification methods will only increase. We            to talk gamification.
need to provide people with channels for the
different emotions being evoked, and with well
designed interactions, the right emotions can be
harnessed to help motivate and self discipline,
whilst reducing the arousal of detrimental
emotions such as sabotage, jealousy and
boredom.


AA_ Would you describe gamifying something
akin to a creative treatment or design tactic, or is
it deeper than that?
                                                       Classic leaderboard (underneaththeirrobes.blogs.com)

DT_ It is way deeper, it is a methodology and
framework, and something I believe, for safety’s       The difference is about behaviour change. The
sake, should be implemented by authorised              first example is short-lived and purely tactical,
practitioners . The issue is still the misuse of the   whereas the second example establishes a
title and therefore the practice. Many high profile    change in the mindset and even the culture.
case studies state the use of gamification, when       Employees actively provide feedback; they can
it actually is a game.                                 see their input, as can others. This develops a
                                                       long-term path that can be built on.
If you say ‘we got people to challenge each
other in to order to see who could comment the         We cannot dismiss the importance of the design
most on our company social channel, then earn          treatment as it does play a key part in creating
points and gain a position on a leaderboard for        the constructive environment. Processes that
a prize – here you are essentially describing a        build on a gamified structure, must still pay
game                                                   respect to things like information design,
                                                       semiotics, wayfinding and visual interface
If however you say ‘we developed a strategy            design. These areas ensure that the theory and
that encourages employees to maintain their            architecture come to life and inspire a person or
company profiles, share responses regarding            ‘player’ to want to engage.
information releases, and actively support our




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“   As more successful instances                        AA_ I can see how the gamification is touching
                                                        many business and social areas, but do you
    of gamification are unveiled,
                                                        see there being a better use for consumer
    I feel marketers will need
                                                        marketing?
    to look quite differently
    at how consumer and                                 DT_ For sure, B2C marketing is highly
    brand relationships are first                       innovative and often very sophisticated

    established, then how they                          in constantly deploying new ideas. With
                                                        competition in most sectors only increasing,
    are maintained.
                                                        emotional engagement with the customer is
                                                        more highly prized than ever. The methodology
                                                        of gamification is, as we have touched
                                                        on, developed around doing exactly that;
    AA_ How do you measure the effectiveness of
                                                        creating a psychological engagement with the
    gamification?
                                                        ‘players’ that is deeper and longer lasting than
                                                        conventional marketing techniques.
    DT_ Assessment is fundamental to successful
    application. Motivation is driven by the ability
                                                        In business and social landscapes we can
    to see how you have progressed, and what
                                                        already see game mechanics being applied
    you have achieved. A lot of the successful
                                                        to motivate sophisticated behaviour change
    design using game mechanics rests on how the
                                                        and human interaction. As more successful
    feedback cycle is integrated within the system.
                                                        instances of gamification are unveiled, I feel
                                                        marketers will need to look quite differently at
    It is important that the objectives and KPI’s of
                                                        how consumer and brand relationships are first
    the program are clearly defined upfront so the
                                                        established, then how they are maintained.
    whole plan is designed with a practical analytics
                                                        Examples like Nike+ and Nike Fuel Bands I
    model, from testing through development
                                                        think show an understanding of this new vision.
    cycles.
                                                        Nike has created a fully sensory, cross device
                                                        / platform experience, that promotes health
    Gauging the true impact of gamified
                                                        through fun, and generates ultimate brand
    applications means talking to people. Evaluating
                                                        awareness, all whilst establishing a profoundly
    whether or not people are more enthused,
                                                        unique customer relationship.
    feeling more involved, or have gained more
    loyalty to the business are the penetrative,
                                                        In the consumer world, the success stories
    emotive things that require careful access.



                                                          QUESTIONS IN MODERN MARKETING                  9
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           will derive from the marketers, like the team at      Steve Hemmings_ It has been well recognised
           Nike+, who get that gamification offers so much       that people learn differently; some people use
           more than superficial badges and leaderboards;        auditory, some people are more visual, and
           to marketers it will be quite simply game             some learn kinetically. So, if you can get people
           changing.                                             to engage with all these different senses –
                                                                 you can get people to learn a lot better, so in
           It will be exciting to see how loyalty schemes        principle, yes, in training environment, it can be
           in particular, view the wider opportunities           very effective.
           presented through gamification. With the ever
           more acute targeting of audience segments,            AA_ So, is working out how to win the game,
           gamification already contains detailed profiling      part of the reward?
           insight to ensure the efficacy. The use of profiles
           during the planning process provides clear            DT_ Certain team members or players will
           direction for crucial areas such as gender,           definitely consider winning the objective,
           demographic and cultural variances.                   but the cleverer ones will realise that it is not
                                                                 so much about rewards and more about the
                                                                 process being rewarding. Winning can happen
                                                                 in many ways and well-designed systems will
                                                                 even allow winning to be personal. Players will
                                                                 understand the value in strategy, in how greater
                                                                 personal gain is made by evolving an immersive
                                                                 attitude to working in or with a system. Collect,
                                                                 share, feedback, collaborate and so on, all
                                                                 feed into the richer experience and transition
Nike+ and Fuel Bands (nkfuelband.com)                            the mundane tasks into a world of choices,
                                                                 challenges, achievements and collaborations.
           AA_ I should bring in Steve on this point.
           As someone who runs training and coaching             In certain processes winning can prohibit
           workshops, do you think games can be a more           continuous ambition, for example if my job
           effective way to get people engaged in training       requires that I maintain a very monotonous role
           and changing their behaviours?                        but task achievement and challenges have been
                                                                 applied and enthuse me, if I win where is my
                                                                 incentive for the next month?




                                                                   QUESTIONS IN MODERN MARKETING                     10
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“   The title ‘gamification’ – I                          DT_ As we touched on businesses,
                                                          organisations, public bodies etc. are all taking
    hope that will not be around
                                                          the opportunity quite seriously. It gets really
    for very long. For many it
                                                          interesting when you look at the successes
    is seen as a fad because of                           from some of the challenging areas, like the
    the numerous examples that                            Department of Work and Pensions. They
    continue to apply only the                            adopted gamification to help with collaborative

    superficial elements.                                 internal team thinking, and it has generated
                                                          more than 6,500 innovation ideas from their staff
                                                          over the past 12 months using a gamified idea

    SH_ What about the critics of gamification?           submission process.

    Some say it will not be around and it’s a bit of a
    buzzword. As a marketing approach, is it going        SH_ So how did that work?

    to last do you think?
                                                          DT_ They used status and rewards mechanics

    DT_ Well, firstly the title ‘gamification’ – I hope   but more interestingly they introduced If your

    that will not be around for very long. For many It    idea is good, it gets you through to the next

    is still seen as a fad because of the numerous        level. It is about giving people recognition and

    examples that continue to apply only the              tapping into that massive status thing. It has

    superficial elements i.e. the points, badges and      been highly successful.

    leader boards, without understanding the bigger
    picture. Really the technique of gamifying has        AA_ So, which gamification tactics offer the

    been around for ages. For example - look back         most opportunity for marketers?

    to the Blue Peter appeals, frequent flyer points,
    nectar cards and the host of various attempts to      DT_ That is a tough one because it

    engage and influence us. The fact is as humans        depends on many variables; age, gender,

    we like challenges, quests and being able to          objectives, environment all come in to play. At

    share our achievements and that is unlikely to        Pomegranate we have been exploring amongst

    change, so realistically there should always be a     other things, the world of credit cards. We have

    need to acknowledge and nurture that.                 been looking at how the game mechanics can
                                                          be structured to change an often distressful

    SH_ How well do you think businesses are              relationship between customer and card, into

    responding to the opportunity at the moment?          one of value, trust and meaning.




                                                            QUESTIONS IN MODERN MARKETING                   11
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Credit Cards have often used a small degree         augmented reality in your mobile, to get certain
of game mechanics, such as status - move            rewards etc.
from gold to platinum, collect reward points
or cashback, and of course spend more =             AA_ So, you’re seeing business, technology,
increase your limit.                                social media, advertising, loyalty schemes, all
                                                    using gamification?
We have focused on how to create a culture
and a responsible community where both brand        DT_ Potentially. As I said the ethos behind the
and customer benefit. By putting a lens to the      title is for use in non-game contexts, however
different, challenging areas, we have been able     that is so broad. If the ‘gamifiers’ have a
to devise a new architecture around how the         comprehensive understanding of how to use
loyalty and achievement is responded to by the      game mechanics positively, not for short-term
brand. When you introduce key concepts like         gain, then why should there be a boundary?
collection, combined with sharing or in this case   Examples like Swag bucks get users to interact,
gifting, we have opened up a whole new world        review and share content to gain redeemable
of experiences for card users, that will reduce     ‘bucks’. This is non-game, continuous, and
their need to promiscuously jump from card to       rewards progress and achievement.
card.


AA_ That touches on other big topics at the
moment though; social media, social networks
and the rise of local and mobile platforms etc.
Where is gamification going, regarding the rise
of social media and especially, these kinds of
technology trends?


DT_ The great thing about mobile is that it
opens up a huge swathe of different activations.
There is a great new platform called Scvngr,
and they are using gamification techniques
combined with location-based activities. So
for example, different activities and offers
tracked via different locations and supported by
                                                       SCVNGR app (itunes.apple.com)




                                                      QUESTIONS IN MODERN MARKETING                12
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AA_ So what do marketers need to consider           £20 Billion industry, which is great news for us.
before they look at gamification projects?          But what really excites me, is how this can have
                                                    an impact on education.
DT_One: the audience. Who are they?
Two: what is the behaviour/s you are trying         SH_ In universities and schools?
to ignite or harness? And three: what kind of
longevity are you after?                            DT_ Yes, exactly. In situations where education
                                                    might not be fully engaging, how can we use
To do it properly, this should be seen as a long-   games to help that? One bank we worked with
term, not short-term activity. And finally, you     showed a massive failure rate in their internal
must determine the feedback process: what           training exams. How can we bring simple
are the success factors and how will they be        gamification processes in to help that? We
monitored? It is crucial that everyone from an HR   brought in simple, regular game type questions,
and Sales Director to a marketer understands        and made it into a competition.
the measures and metrics needed. For example,
we have recently worked on a gamification
platform for a sales team, and through the
metrics used we discovered that the sales
team actually really loved sharing stuff, which
was a surprise. That could have a big effect
on how they run and reward their sales teams.
It is a great insight, so next it is important to
understand how the client takes this information,
and uses it to build on their internal framework.   Mathletics contest (homeschoolmath.net)


SH_ Where do you see gamification going over        In another project we have seen them use
the next 12 months?                                 ‘mathletics’ - bringing games methods into the
                                                    maths class. They don’t even know they are
Well Gartner interviewed the global 2000 (top       doing maths - they just want to win their silver
companies in the world), and over 74% of them       certificate! And to solve some of the puzzles -
have said that they will be using gamification      what they’ve seen is that people need to work
techniques within the core business by 2015. By     together and collaborate to solve the problem.
2018 it is estimated that gamification will be a    The understanding that you cannot do it all




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by yourself and that you need work with other     IN SUMMARY
people. That’s another exciting future – for      Gamification continues to be a contentious
gamification. And I know that’s something we’re   topic; its value and effect will be debated
going to talk about with you next.                for a long while to come. Whether or not
                                                  this methodology retains its current title, the
AA_ What a brilliant place to end. So, on that    fact remains that games have been around
note, we will do. Thanks Duncan.                  since early man, and through increasingly
                                                  sophisticated sciences, games continue to
                                                  evolve and attract players at exponential rates.
                                                  As games further infiltrate our daily lives, the
                                                  distinction between game play and disciplined,
                                                  functional activities, does risk becoming blurred.


                                                  Without some form of policing and even possibly
                                                  licensing of practitioners, there is a real danger
                                                  of abuse.


                                                  In short, gamification presents organisations
                                                  large and small with a new lens with which to
                                                  view how they motivate their people. With clear
                                                  objectives and experiences designed with
                                                  people at the heart, there is the potential to see
                                                  significant financial gains.




                                                    QUESTIONS IN MODERN MARKETING                    14
Contributors                                                                      CHALLENGE
                                                                                      series




        Duncan Thomas
        Pomegranate Group

        Duncan Thomas is the founder and M.D. of Pomegranate Group, a leading agency that
        start every engagement project with the people, the audience the community and the
        culture. The objective is always to build experiences that attract, inspire and evoke
        meaningful interactions. Today Pomegranate sees Gamification as a methodology with
        powerful benefits to enhancing the practice of engagement and motivational design,
        focusing on three key areas: innovation in marketing engagement, motivation through
        business applications and evolution in the socially impactful applications.
        For more on how the latest digital technologies can be used in your next campaign get
        in touch via email: Duncan@pomegranate.co.uk or call 0207 336 7322




        Andrew Armour
        Benchstone

        Andrew Armour is the Founder of Benchstone Limited, a marketing consultant and a
        specialist advisor and trainer in the areas of collaboration, partnerships and innovation.
        He has held senior marketing and innovation roles with Yell.com, Walt Disney and
        Television New Zealand. He writes about modern issues of marketing in his blog
        www.andrewarmour.com. If you would like to discuss how collaboration can give
        your marketing efforts an edge, email Andrew: Andrew@benchstone.co.uk
        or call 07971 231 025




        Steve Hemmings
        Realpoint Consulting

        Steve Hemmings, the founder of Realpoint Consulting is a business consultant, coach
        and trainer specialising in the areas of strategic sales, relationship building, and
        collaborative leadership. He is also the co-producer of the CollaborativeEdge and
        CollaborationCafe training programme. Prior to launching Realpoint, Steve had a thirty
        year career in technology, telecoms and media, with senior UK and international sales
        & marketing positions at Cisco, Lucent Technology and VeriSign.
        Contact Steve by email: Shemmings@realpoint.co.uk or call 07979 788 859




                                                  QUESTIONS IN MODERN MARKETING                15
Resources                                                                                     CHALLENGE
                                                                                                series



  EXAMPLES OF GAMIFICATION IN ACTION

  http://www.games4rehab.org/BDBlueMarble/blog/258/
  http://www.gamesforhealtheurope.org/
  (Healthcare Marketing Exchange) bit.ly/L5eER0
  ( 7 Examples: Put Gamification To Work) bit.ly/JqEziU
  Accenture uses gamification bit.ly/ncAGlH


  FINANCIAL

  Investing in gaming bit.ly/rfnqRG


  REFERENCES, ADDITIONAL READING AND RESEARCH:

  WIKI - http://gamification.org/
  Total Engagement: Byron Reeves
  Theory of Fun: Raph Koster
  Gamestorming: Dave Gray
  Rules of Play: Katie Salen

  http://gamification-research.org/


  DIGITAL AND WEB RESOURCES:

  Bartle, Professor Richard –‘Multiplayer Design’ and ‘The Future of Games’. See www.mud.co.uk
  Chang, Tim – ‘Gamification Insights And Emerging Trends’, Tech Crunch, 2012
  Kay, Joseph – ‘Block Out The Hype And Rethink Gamification’ – Brand Republic, 2012
  Sebastian Deterding – ‘ Experts split, holds various opinions’ March 2012 - bit.ly/Kykg1R


  LINKS:

  http://virtualgoodsinsider.com/
  http://gamification-research.org
  http://www.rtbot.net/Dr._Richard_Bartle - Gamification and its shortcomings with Dr Richard Bartle
  http://www.xeodesign.com
  http://www.8kindsoffun.com
  http://www.openbadges.org




                                                              QUESTIONS IN MODERN MARKETING              16
CHALLENGE
                                series



                 Thanks for reading




                       QUESTIONS IN MODERN MARKETING



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Can business win with Gamification?

  • 1. CHALLENGE series business Can win with ification? Gam QUESTIONS IN MODERN MARKETING
  • 2. CHALLENGE series “ Gamification: When the ‘mechanics’ engineered to make games fun are used to alter non-game structures and business processes. Through positive mental stimulation, the functional everyday processes, can be transitioned from the monotonous into the deeply engaging. Pomegranate, 2012
  • 3. Wh at’s this CHALLENGE about? series issue all Marketers and sales directors have interaction of people within non game contexts’ seen trends and ideas come and Before we go any further it is important to clarify, go. And they can be forgiven if gamification is not ‘game theory,’ nor ‘game a degree of scepticism colours design’, these are both very different fields as research will inform you. Additionally, you their view of the latest marketing will see me use the term ‘player’ more often communications tools and new than user or viewer, as this helps promote killer methods. Duncan Thomas, the difference in thinking around this subject. founder and M.D. of Pomegranate, Finally, I am not a fan of the term of gamification as I will explain later. However, for universal explains why gamification is more understanding we will use it today. than tricks and gimmicks. Gamification is a methodology established from The rise of digital media has seen a proliferation the in-depth analysis of human psychology, in of ideas, channels and business models. Tactics relation to gameplay and game environments. have emerged that have worked for some Numerous studies have concluded that games brands, whilst leaving others bewildered, out of trigger or intensify specific emotions, behaviours pocket, and with some explaining to do when and actions, not synonymous with any other they have not got the results they anticipated. activities. With the categorisation of the ‘game We have seen the rise of some new marketing mechanics’ (which activities in a game, memes: Content Marketing, User Generated influence which emotions), people are able to Content, Mobile Websites (WAP), Brand Theatre, look at positive ways of harnessing the effect and Branded Content. Then came ‘Freemium’ – for applications outside of games. Marketing and of course, the rise and rise of social media. has been toying with various pieces for a while, only businesses are now realising the potential Gamification, is another of these terms, being impacts too. hailed by some as a game changer. The typical definition is ‘the use of techniques and How successful is the games industry? mechanics derived from the understanding Including hardware and software, the global of games and game play to enhance the computer games business is now worth in QUESTIONS IN MODERN MARKETING 3
  • 4. CHALLENGE series excess of US$25 Billion (NPD Group / Social However, what unites people from Media Today, 2012), and in 2012 it is predicted anthropologists and HR directors to marketers that social games alone – those played within is a deeper understanding of the unique human sites such as Facebook, will generate more emotions and characteristics that are activated than $6.2 Billion of revenue (TechCrunch, 2012). by game play. For example, repetition, why does The UK computer games business is now the a player return five times a day to religiously single biggest sector of the entire entertainment carry out the same task, such as spraying fields industry. How big? With annual sales of £1.9 in Farmville, and what stimulates a person to Billion it is just under double the size of the spend 140 hours a month collecting virtual UK music business (Entertainment Retailers objects, like swords and gems in Warhammer? Association, 2012). Things start to get really interesting when From free to play games such as Rovio’s those questions are transferred out of games Angry Birds and Zynga’s infamous Farmville worlds into business contexts. But what does generating multi-millions though advertising gamification mean for businesses? A renowned and micro payments, to huge blockbuster statistic is Gartners prediction that by 2015 releases such as Call of Duty Modern Warfare over 50% of Global 2000 organisations would (which sold 6 million units in its first 24 hours of be using gamification within their innovation release) - there is no denying the success of the processes, and that over 70% will use games gaming world at grabbing attention and making mechanics and processes within their general consumers part with their cash. marketing and retention efforts. Clearly business leaders need to take notice. “ How can games methods and thinking be built By 2015 over 50% of Global into brand plans? Can you believe the hype? 2000 organisations would And how can you win with gamification? be using gamification within their innovation processes, and over 70% will use games mechanics and processes within their general marketing and retention efforts. QUESTIONS IN MODERN MARKETING 4
  • 5. So can you CHALLENGE in using series really w Gami fication? Recently, marketing & collaboration from determining patterns of what attracts and repels players, new archetype profiles and consultant Andrew Armour of ultimately enabled us to model the life of a social Benchtone and business advisor & game. leadership coach, Steve Hemmings AA_ So it was a pure commercial product of Realpoint Consulting met with development? Duncan Thomas of Pomegranate and asked him ‘how can business DT_ Essentially, that is how it all started. We win with gamification?’ wanted to understand ‘how did Zinga make £60 Million + out of Farmville?:’ ‘why did people get addicted to it? What attracts spend on virtual goods? We looked at the psychology and the Andrew Armour_ Duncan, how did you get social behaviour, assessing a broad spectrum started in this whole area of gamification? of resources like social conversations, user data, activity workshops and focus groups. To Duncan Thomas_ We got started when we validate our findings we also cross-referenced were commissioned to investigate the success current research from areas like console and PC factors behind ‘social gaming’ – this resulted games. in us spending about six months running some deep research studies using a range of methods AA_ OK. So, is the use of games mechanics (quantitative, qualitative and ethnographic) to another way of engaging the consumer? dig deeper into the factors that created both commercial success for the game makers, and DT_ I won’t be purest but Gamification is not high levels of user engagement. really about retail and consumerism, it is about motivating people, enhancing engagement; in The research presented some powerful insights, essence its about introducing fun into areas typically devoid of it! QUESTIONS IN MODERN MARKETING 5
  • 6. CHALLENGE series However there is of course an extensive list of Unfortunately to date, the majority of consumer consumer marketing executions that testify to cases citing the use of gamification amount to using gamification. Most of us will have been using little more than the basic points, badges, hit with some form of gamed-up marketing rewards and leaderboard devices. It is these campaign, with loyalty generating systems that primitive and often naïve applications of ‘game range from British Airways’ Avios points, to mechanics’ that influence people to dismiss simply stamping your Starbucks loyalty cards to gamification as a fad or gimmick. get your free Latte. AA_ What is proving gamification’s case for business? DT_ In the hands of skilled people like software engineers, product designers and user experience architects, gamification is emerging as a powerful methodology with ever increasing applications for business. When you have companies like IBM, Accenture, Samsung, Pepsi and even the US Government using gamified techniques, you know you have to take notice. Starbucks loyalty card (johnwise.com) Look at it this way, if you could make your work More advanced applications reward ‘players’ for as exciting as when you are in ‘play’, whether increased engagement, through i.e. sharing or its sports, console games etc, how much more frequency of returns, examples such as Xboxes fun would life be? Play and fun are words reward scheme (See link bit.ly/fBGeGK), or not associated with many work environments, Swagbucks.com where you earn cash for your until now. Systems and process designers reviewing brands’ content. Away from loyalty are exploring a diverse range of applications, schemes, innovations such as Dennis Crowley initially focusing on the environments where ‘s Foursquare, are evolving to provide a whole monotony is a big risk, for example in call new way to promote leisure and hospitality centres and data processing. locations; check in when you get there and Game mechanics are also being extensively build your status to being the mayor, which In introduced within the training and learning turn gains you rewards from that establishment. development areas of large organisations. QUESTIONS IN MODERN MARKETING 6
  • 7. CHALLENGE series Various department types are actively testing Jane’s studies show that practical learning can approaches from Secondlife and IBM’s 3D be absorbed more deeply when using game virtual worlds, to the US Military’s serious games mechanics. McGonical’s renowned example and Flip Learnings role-based scenarios. The was used to promote social responsibility pharmaceutical and medical worlds particularly around the use of energy efficient living (bit.ly/ are closely looking at studies that use game aDmAYR). mechanics in internal knowledge share platforms to promote collaboration and better AA_ Are you confident this practice is team approaches to problem solving. sustainable then? We have seen pioneers like Jane Mcgonigal DT_ In short, yes! Because there is nothing take the fusing of motivational techniques into new in gamification; we haven’t ‘done a virtual environments to a whole new level. Jane Darwin’ and uncovered a unique facet of has run test scenarios over long durations to man’s behavioural evolution. We have simply really get under the skin of how far reaching the created a neat wrapper for the bundle of human impacts on behaviour can be. instincts that have been ingrained in us for 1000’s of years. The primary human behaviours we are now engaging in haven’t changed massively; moreover they get provoked in new “ We haven’t ‘done a Darwin’ and uncovered a unique and increasingly acute ways. Take jealousy, it can occur simply because a colleague has facet of man’s behavioural achieved ‘Power networker’ status in Linked evolution. We have simply In, my aggression can be riled just because created a neat wrapper my profile is not as complete, or I can’t show as many followers for my Twitter crowd. These for the bundle of human are basic examples of how our emotions are instincts that have been constantly being provoked, and one of reasons ingrained in us for 1000’s why systems designed to harness and nurture of years. behaviour states, can impact widely in the work place. This clearly demonstrates that it is not our behaviours and emotions that have changed, just the ways in which we express them. QUESTIONS IN MODERN MARKETING 7
  • 8. CHALLENGE series To me this proves that the need to apply social innovation channel,’ then you are starting gamification methods will only increase. We to talk gamification. need to provide people with channels for the different emotions being evoked, and with well designed interactions, the right emotions can be harnessed to help motivate and self discipline, whilst reducing the arousal of detrimental emotions such as sabotage, jealousy and boredom. AA_ Would you describe gamifying something akin to a creative treatment or design tactic, or is it deeper than that? Classic leaderboard (underneaththeirrobes.blogs.com) DT_ It is way deeper, it is a methodology and framework, and something I believe, for safety’s The difference is about behaviour change. The sake, should be implemented by authorised first example is short-lived and purely tactical, practitioners . The issue is still the misuse of the whereas the second example establishes a title and therefore the practice. Many high profile change in the mindset and even the culture. case studies state the use of gamification, when Employees actively provide feedback; they can it actually is a game. see their input, as can others. This develops a long-term path that can be built on. If you say ‘we got people to challenge each other in to order to see who could comment the We cannot dismiss the importance of the design most on our company social channel, then earn treatment as it does play a key part in creating points and gain a position on a leaderboard for the constructive environment. Processes that a prize – here you are essentially describing a build on a gamified structure, must still pay game respect to things like information design, semiotics, wayfinding and visual interface If however you say ‘we developed a strategy design. These areas ensure that the theory and that encourages employees to maintain their architecture come to life and inspire a person or company profiles, share responses regarding ‘player’ to want to engage. information releases, and actively support our QUESTIONS IN MODERN MARKETING 8
  • 9. CHALLENGE series “ As more successful instances AA_ I can see how the gamification is touching many business and social areas, but do you of gamification are unveiled, see there being a better use for consumer I feel marketers will need marketing? to look quite differently at how consumer and DT_ For sure, B2C marketing is highly brand relationships are first innovative and often very sophisticated established, then how they in constantly deploying new ideas. With competition in most sectors only increasing, are maintained. emotional engagement with the customer is more highly prized than ever. The methodology of gamification is, as we have touched on, developed around doing exactly that; AA_ How do you measure the effectiveness of creating a psychological engagement with the gamification? ‘players’ that is deeper and longer lasting than conventional marketing techniques. DT_ Assessment is fundamental to successful application. Motivation is driven by the ability In business and social landscapes we can to see how you have progressed, and what already see game mechanics being applied you have achieved. A lot of the successful to motivate sophisticated behaviour change design using game mechanics rests on how the and human interaction. As more successful feedback cycle is integrated within the system. instances of gamification are unveiled, I feel marketers will need to look quite differently at It is important that the objectives and KPI’s of how consumer and brand relationships are first the program are clearly defined upfront so the established, then how they are maintained. whole plan is designed with a practical analytics Examples like Nike+ and Nike Fuel Bands I model, from testing through development think show an understanding of this new vision. cycles. Nike has created a fully sensory, cross device / platform experience, that promotes health Gauging the true impact of gamified through fun, and generates ultimate brand applications means talking to people. Evaluating awareness, all whilst establishing a profoundly whether or not people are more enthused, unique customer relationship. feeling more involved, or have gained more loyalty to the business are the penetrative, In the consumer world, the success stories emotive things that require careful access. QUESTIONS IN MODERN MARKETING 9
  • 10. CHALLENGE series will derive from the marketers, like the team at Steve Hemmings_ It has been well recognised Nike+, who get that gamification offers so much that people learn differently; some people use more than superficial badges and leaderboards; auditory, some people are more visual, and to marketers it will be quite simply game some learn kinetically. So, if you can get people changing. to engage with all these different senses – you can get people to learn a lot better, so in It will be exciting to see how loyalty schemes principle, yes, in training environment, it can be in particular, view the wider opportunities very effective. presented through gamification. With the ever more acute targeting of audience segments, AA_ So, is working out how to win the game, gamification already contains detailed profiling part of the reward? insight to ensure the efficacy. The use of profiles during the planning process provides clear DT_ Certain team members or players will direction for crucial areas such as gender, definitely consider winning the objective, demographic and cultural variances. but the cleverer ones will realise that it is not so much about rewards and more about the process being rewarding. Winning can happen in many ways and well-designed systems will even allow winning to be personal. Players will understand the value in strategy, in how greater personal gain is made by evolving an immersive attitude to working in or with a system. Collect, share, feedback, collaborate and so on, all feed into the richer experience and transition Nike+ and Fuel Bands (nkfuelband.com) the mundane tasks into a world of choices, challenges, achievements and collaborations. AA_ I should bring in Steve on this point. As someone who runs training and coaching In certain processes winning can prohibit workshops, do you think games can be a more continuous ambition, for example if my job effective way to get people engaged in training requires that I maintain a very monotonous role and changing their behaviours? but task achievement and challenges have been applied and enthuse me, if I win where is my incentive for the next month? QUESTIONS IN MODERN MARKETING 10
  • 11. CHALLENGE series “ The title ‘gamification’ – I DT_ As we touched on businesses, organisations, public bodies etc. are all taking hope that will not be around the opportunity quite seriously. It gets really for very long. For many it interesting when you look at the successes is seen as a fad because of from some of the challenging areas, like the the numerous examples that Department of Work and Pensions. They continue to apply only the adopted gamification to help with collaborative superficial elements. internal team thinking, and it has generated more than 6,500 innovation ideas from their staff over the past 12 months using a gamified idea SH_ What about the critics of gamification? submission process. Some say it will not be around and it’s a bit of a buzzword. As a marketing approach, is it going SH_ So how did that work? to last do you think? DT_ They used status and rewards mechanics DT_ Well, firstly the title ‘gamification’ – I hope but more interestingly they introduced If your that will not be around for very long. For many It idea is good, it gets you through to the next is still seen as a fad because of the numerous level. It is about giving people recognition and examples that continue to apply only the tapping into that massive status thing. It has superficial elements i.e. the points, badges and been highly successful. leader boards, without understanding the bigger picture. Really the technique of gamifying has AA_ So, which gamification tactics offer the been around for ages. For example - look back most opportunity for marketers? to the Blue Peter appeals, frequent flyer points, nectar cards and the host of various attempts to DT_ That is a tough one because it engage and influence us. The fact is as humans depends on many variables; age, gender, we like challenges, quests and being able to objectives, environment all come in to play. At share our achievements and that is unlikely to Pomegranate we have been exploring amongst change, so realistically there should always be a other things, the world of credit cards. We have need to acknowledge and nurture that. been looking at how the game mechanics can be structured to change an often distressful SH_ How well do you think businesses are relationship between customer and card, into responding to the opportunity at the moment? one of value, trust and meaning. QUESTIONS IN MODERN MARKETING 11
  • 12. CHALLENGE series Credit Cards have often used a small degree augmented reality in your mobile, to get certain of game mechanics, such as status - move rewards etc. from gold to platinum, collect reward points or cashback, and of course spend more = AA_ So, you’re seeing business, technology, increase your limit. social media, advertising, loyalty schemes, all using gamification? We have focused on how to create a culture and a responsible community where both brand DT_ Potentially. As I said the ethos behind the and customer benefit. By putting a lens to the title is for use in non-game contexts, however different, challenging areas, we have been able that is so broad. If the ‘gamifiers’ have a to devise a new architecture around how the comprehensive understanding of how to use loyalty and achievement is responded to by the game mechanics positively, not for short-term brand. When you introduce key concepts like gain, then why should there be a boundary? collection, combined with sharing or in this case Examples like Swag bucks get users to interact, gifting, we have opened up a whole new world review and share content to gain redeemable of experiences for card users, that will reduce ‘bucks’. This is non-game, continuous, and their need to promiscuously jump from card to rewards progress and achievement. card. AA_ That touches on other big topics at the moment though; social media, social networks and the rise of local and mobile platforms etc. Where is gamification going, regarding the rise of social media and especially, these kinds of technology trends? DT_ The great thing about mobile is that it opens up a huge swathe of different activations. There is a great new platform called Scvngr, and they are using gamification techniques combined with location-based activities. So for example, different activities and offers tracked via different locations and supported by SCVNGR app (itunes.apple.com) QUESTIONS IN MODERN MARKETING 12
  • 13. CHALLENGE series AA_ So what do marketers need to consider £20 Billion industry, which is great news for us. before they look at gamification projects? But what really excites me, is how this can have an impact on education. DT_One: the audience. Who are they? Two: what is the behaviour/s you are trying SH_ In universities and schools? to ignite or harness? And three: what kind of longevity are you after? DT_ Yes, exactly. In situations where education might not be fully engaging, how can we use To do it properly, this should be seen as a long- games to help that? One bank we worked with term, not short-term activity. And finally, you showed a massive failure rate in their internal must determine the feedback process: what training exams. How can we bring simple are the success factors and how will they be gamification processes in to help that? We monitored? It is crucial that everyone from an HR brought in simple, regular game type questions, and Sales Director to a marketer understands and made it into a competition. the measures and metrics needed. For example, we have recently worked on a gamification platform for a sales team, and through the metrics used we discovered that the sales team actually really loved sharing stuff, which was a surprise. That could have a big effect on how they run and reward their sales teams. It is a great insight, so next it is important to understand how the client takes this information, and uses it to build on their internal framework. Mathletics contest (homeschoolmath.net) SH_ Where do you see gamification going over In another project we have seen them use the next 12 months? ‘mathletics’ - bringing games methods into the maths class. They don’t even know they are Well Gartner interviewed the global 2000 (top doing maths - they just want to win their silver companies in the world), and over 74% of them certificate! And to solve some of the puzzles - have said that they will be using gamification what they’ve seen is that people need to work techniques within the core business by 2015. By together and collaborate to solve the problem. 2018 it is estimated that gamification will be a The understanding that you cannot do it all QUESTIONS IN MODERN MARKETING 13
  • 14. CHALLENGE series by yourself and that you need work with other IN SUMMARY people. That’s another exciting future – for Gamification continues to be a contentious gamification. And I know that’s something we’re topic; its value and effect will be debated going to talk about with you next. for a long while to come. Whether or not this methodology retains its current title, the AA_ What a brilliant place to end. So, on that fact remains that games have been around note, we will do. Thanks Duncan. since early man, and through increasingly sophisticated sciences, games continue to evolve and attract players at exponential rates. As games further infiltrate our daily lives, the distinction between game play and disciplined, functional activities, does risk becoming blurred. Without some form of policing and even possibly licensing of practitioners, there is a real danger of abuse. In short, gamification presents organisations large and small with a new lens with which to view how they motivate their people. With clear objectives and experiences designed with people at the heart, there is the potential to see significant financial gains. QUESTIONS IN MODERN MARKETING 14
  • 15. Contributors CHALLENGE series Duncan Thomas Pomegranate Group Duncan Thomas is the founder and M.D. of Pomegranate Group, a leading agency that start every engagement project with the people, the audience the community and the culture. The objective is always to build experiences that attract, inspire and evoke meaningful interactions. Today Pomegranate sees Gamification as a methodology with powerful benefits to enhancing the practice of engagement and motivational design, focusing on three key areas: innovation in marketing engagement, motivation through business applications and evolution in the socially impactful applications. For more on how the latest digital technologies can be used in your next campaign get in touch via email: Duncan@pomegranate.co.uk or call 0207 336 7322 Andrew Armour Benchstone Andrew Armour is the Founder of Benchstone Limited, a marketing consultant and a specialist advisor and trainer in the areas of collaboration, partnerships and innovation. He has held senior marketing and innovation roles with Yell.com, Walt Disney and Television New Zealand. He writes about modern issues of marketing in his blog www.andrewarmour.com. If you would like to discuss how collaboration can give your marketing efforts an edge, email Andrew: Andrew@benchstone.co.uk or call 07971 231 025 Steve Hemmings Realpoint Consulting Steve Hemmings, the founder of Realpoint Consulting is a business consultant, coach and trainer specialising in the areas of strategic sales, relationship building, and collaborative leadership. He is also the co-producer of the CollaborativeEdge and CollaborationCafe training programme. Prior to launching Realpoint, Steve had a thirty year career in technology, telecoms and media, with senior UK and international sales & marketing positions at Cisco, Lucent Technology and VeriSign. Contact Steve by email: Shemmings@realpoint.co.uk or call 07979 788 859 QUESTIONS IN MODERN MARKETING 15
  • 16. Resources CHALLENGE series EXAMPLES OF GAMIFICATION IN ACTION http://www.games4rehab.org/BDBlueMarble/blog/258/ http://www.gamesforhealtheurope.org/ (Healthcare Marketing Exchange) bit.ly/L5eER0 ( 7 Examples: Put Gamification To Work) bit.ly/JqEziU Accenture uses gamification bit.ly/ncAGlH FINANCIAL Investing in gaming bit.ly/rfnqRG REFERENCES, ADDITIONAL READING AND RESEARCH: WIKI - http://gamification.org/ Total Engagement: Byron Reeves Theory of Fun: Raph Koster Gamestorming: Dave Gray Rules of Play: Katie Salen http://gamification-research.org/ DIGITAL AND WEB RESOURCES: Bartle, Professor Richard –‘Multiplayer Design’ and ‘The Future of Games’. See www.mud.co.uk Chang, Tim – ‘Gamification Insights And Emerging Trends’, Tech Crunch, 2012 Kay, Joseph – ‘Block Out The Hype And Rethink Gamification’ – Brand Republic, 2012 Sebastian Deterding – ‘ Experts split, holds various opinions’ March 2012 - bit.ly/Kykg1R LINKS: http://virtualgoodsinsider.com/ http://gamification-research.org http://www.rtbot.net/Dr._Richard_Bartle - Gamification and its shortcomings with Dr Richard Bartle http://www.xeodesign.com http://www.8kindsoffun.com http://www.openbadges.org QUESTIONS IN MODERN MARKETING 16
  • 17. CHALLENGE series Thanks for reading QUESTIONS IN MODERN MARKETING benchstone R ealpoint Consulting www.benchstone.co.uk www.pomegranate.co.uk www.real-point.co.uk