What is Gamification

GamificationDefinition

Gamification

or gamification is the use of game design techniques in contexts that have nothing to do with games, such as education, business, or social contexts. For example, a company may adopt techniques used by game designers and apply them to a non-gaming website to improve customer engagement and loyalty.

Taking popular elements of games and their application to non-game actions is not a new idea. Gamification has been used for many years in the form of hotel loyalty clubs and credit card rewards programs or retail stores. Still, gamification is a buzzword today, as it’s popular with younger, tech-savvy consumers who tend to look for engaging experiences.

Gamification doesn’t mean games for business

Gamification is not about creating games for business or creating something new. It is the concept of applying game mechanics and game design techniques to engage and motivate people to achieve their goals. Gamification is nourished by the basic wants and needs of users, impulses that revolve around the idea of status and achievements.

The oldest example of gamification is the frequent flyer programs that airlines offer as part of their customer loyalty programs.

Gamification techniques strive to tap into people’s natural desires to achieve, offer competition, status, altruism, collaborate with the Community, and many more. Companies can use gamification to drive user behaviors where they are advantageous to their brand.

A common gamification technique is to increase participation through rewarding, through badges and points, users who perform desired tasks. Competition is another technique that can be used in gamification, as the desire to appear at the top of a ranking leads customers to complete more tasks, which in turn increases their engagement with the brand.

Gamification and Big Data

Gamification is a very practical technique for taking advantage of large volumes of data. It is a powerful tool to motivate better performance, business results, and generate a competitive advantage. By obtaining and analyzing the big data on behaviors, companies can create a more engaging experience that motivates employees and users. 71% of companies use Big Data to make a significant impact on sales.

By providing extensive information about user behavior, Big Data can indicate which activities, types of content, and frequencies are giving the best results. It also allows companies to adapt to various user behaviors and motivations. In order to get the maximum value from gamification, it is important to go beyond the data and try to understand not only how users are behaving but also ask “why they behave like this” and also produce creative ideas to improve the system.

Effective utilization of data analytics and gamification, in turn, helps businesses sell more and increase customer loyalty.