By Jérémy Denisty, Co-founder, Imagin3 Studio, Co-author Virtual Economy

PowerPoint presentations, extensive email threads, and traditional all-hands meetings have one thing in common —they are all one-dimensional forms of communication. And, not to mention, dull.

Company briefs and strategic meetings are typically transactional for employees, offering information without encouraging ongoing engagement. There’s an unconvincing call to action at the end of the email that lingers more as an afterthought rather than words of encouragement.

Similarly, businesses often struggle to establish meaningful connections with their customers, who are eager to engage but can’t beyond a transactional relationship with their favorite brands.

As a result, some brands are turning their attention to gamification as a successful strategy to establish a two-way interaction that integrates entertaining gaming elements into the mundane model of information and commercial transactions.

Gamification is not only an avenue for customers to engage with brands in a unique and enjoyable manner but also a medium for improving internal communication, engagement, and collaboration within businesses.

How customers can interact better with brands

Gaming is one of the most successful and fastest-growing industries with a report suggesting that young Americans spend 12 hours a week gaming. For example, Roblox boasts 70.2 million active daily users who spend on average two and a half hours per day on the platform, which shows how gaming has evolved from a hobby to a way of living, connecting, and consuming.

Those new generations of customers are getting accustomed to fast-paced, increasingly engaging, and rewarding experiences, which is what they expect from the brands they consume. In our book, The Virtual Economy, we talk about the Magic Triangle and how brands must create value by focusing on building better EXPERIENCES, LOYALTY, and COMMUNITIES. This is exactly what games are about.

Enter gamification for brands.

The biggest impact of gamification for brands lies in the ability to nurture more loyal customers. Loyalty programs have historically rewarded customers transactionally, based on their referrals or a set number of purchases.

A great example of a brand leveraging gamification techniques to grow a loyal fan base is Starbucks.  Starbucks introduced a sophisticated points-based and benefits system through its Starbucks Rewards app, akin to some of the most successful Triple-A games. This digital alternative surpasses traditional loyalty cards, fostering customer loyalty and contributing significantly to the company’s revenue.

As a result of their successful loyalty program shift, Starbucks reported a $2.65 billion revenue increase, with over 25% growth in membership, and 40% of sales at US stores attributed to the membership program.

Starbucks leverages this approach to enhance customer interaction and feedback collection, offering incentives for completing surveys. This gamified strategy not only entertains users but also provides valuable insights to enhance overall business operations.

Going even further, Starbucks introduced Starbucks Odyssey in late 2022. This new layer of the loyalty program offers members the chance to participate in Starbucks “journeys”, such as watching a video on the history of the brand or trying their limited-edition Christmas drink, and rewards participants with “digital stamps”. Those stamps are either redeemable for unique benefits -one of them a trip to Costa Rica to visit a coffee farm, or tradable with other members on a marketplace. More than $200,000 of sales have occurred on the marketplace between members, with Starbucks grabbing a 7.5% royalty fee, making Starbucks Odyssey one of the first “loyalty-to-earn” programs, delivering direct benefits to members, and the brand.

This innovative approach not only enhances user engagement, loyalty, and customer experience but also serves as a creative method of collecting and utilizing data for continual improvement.

However, gamification is not only limited to increasing customer engagement and building more brand loyalty but also to improving internal operations.

Why brands are introducing gamification into their business.

Engagement in the workplace has increasingly become a challenge for brands and companies. A recent Gallup survey showed that “active disengagement” from employees has risen each year since the 2020 Covid pandemic. Only 32% of respondents felt engaged in their work, and 18% felt actively disengaged.

This lack of engagement has significant consequences for companies, whether through a lack of productivity or through increased recruitment and training costs derived from a higher employee turnover rate.

Gamification could be seen as an appropriate solution to solve this problem.

It appeals to our competitive nature and fosters deeper engagement. Gamification integrated into business practices introduces a competitive and fun aspect that motivates professionals to outperform colleagues or their competitors within their industry.

As an example, gamification can be used to create more effective employee training programs. Training programs are loaded with information that usually takes a while to be completely acquainted with. 

Companies can learn from popular Triple-A games such as Call of Duty and develop a leaderboard and badge system that encourages employees to finish modules and learn new skills that will benefit them. In other words, allow them the ability to “level up” their stats, gain XP points, and be rewarded when they complete certain classes and certifications.

Conclusion

Gamification draws heavily from the principles of Prospect Theory, a behavioral economic concept highlighting the motivational power of small incentives in situations with known probabilities of outcomes. Individuals, fundamentally motivated by the prospect of rewards, find their behaviors influenced by gamification elements, offering brands a cost-effective tool to shape consumer engagement and commitment.

Beyond Gen Z, Generation Alpha is the only generation born into the internet and gamified experiences. Growing up playing games such as Roblox and Minecraft that leverage reward systems, Generation Alpha anticipates a similar dynamic in the workplace, emphasizing gamification’s lasting impact and relevance.

With the latest technological advancements, such as VR and AR, gaining popularity in workspaces with a generally young workforce, gamification will continue to shape companies and allow customers to connect with brands at a more relatable level.

By Nauman Moghal, Business Head, GameCentric

Artificial Intelligence (AI) has undeniably claimed its spot as the buzziest of buzzwords, permeating across various industries. Unsurprisingly, the gaming realm is no exception to this AI revolution. This isn’t just a trend; it’s a massive change shaking up the gaming world in 2024. Set aside your preconceptions about gaming – AI is doing more than just making things look cool or telling stories. It’s rewriting how games work. Picture gaming as a dynamic playground where AI takes the reins, not only shaping landscapes, characters, and more but actively engaging with players. This isn’t confined to the screen; it’s a transformative shift that influences how we perceive gaming. 2024 is game-ready for a wave of innovation that will reshape the gaming experience for all audiences!

A Game-Changer for Developers

AI’s ability to spot patterns and analyse the gaming industry landscape introduces a paradigm shift in how developers approach game production. By employing reinforcement learning and pattern recognition, AI becomes a guiding force in understanding player behaviour, innovative gameplay, and adapting to the ever-changing gaming environment. This analytical prowess is not just about understanding the players but also about shaping and evolving the very essence of game creation itself.

Developers now find themselves liberated to focus on the imaginative aspects of game design, leaving the technical intricacies to AI-driven solutions that identify patterns, adjust to surroundings, and accelerate the game development cycle.

Keeping Gamers Intrigued

The dynamic duo of reinforcement learning and pattern recognition isn’t just theoretical; it’s a practical solution to the perpetual challenge of keeping gamers engaged and appropriately challenged. Rapidly assessing player behaviours allows for the adaptation and evolution of character behaviour over time, ensuring that the gaming experience remains a fluid and responsive narrative that captivates players and keeps them on the edge of their seats.

AI’s Impact on Gameplay

The revolution doesn’t stop at game creation; it extends to the very core of gameplay. AI is not just responsible for delivering realistic designs and interactive avatars; it’s the driving force behind tailoring experiences to the unique play style and skill level of each player. Whether adapting difficulty settings, personalising challenges, or creating individualised narratives, AI ensures that every gaming session is a bespoke adventure.

People and Brands Are Beneficiaries of AI’s Gaming Revolution

In this new era of AI-driven gaming, both individuals and brands stand to benefit immensely. Players are no longer passive participants; they are active contributors to the gaming narrative. Through the innovative approach of Gaming-as-a-Service (GaaS), AI becomes the backbone of a personalised gaming experience, assisting players in levelling up and enhancing their journey.

Brands have found a new playground in the virtual realm, leveraging AI not only to enhance in-game experiences but also to craft immersive marketing experiences within games. Within the strategic framework provided by gaming giants, the collaborative nature of AI-driven gaming is fostering a sense of community and engagement, amplifying the overall impact on both the gaming industry and its stakeholders.

As we stand at the cusp of this gaming revolution, propelled by the extraordinary capabilities of AI and the strategic insights of gaming giants, one thing is certain – the future of gaming is not just an evolution; it’s a revolution that transcends boundaries. The adventure has just begun, and the possibilities are as limitless as the virtual worlds AI is helping to create.

By Rick Vanover, Senior Director Product Strategy, Veeam

Amidst the sea of economic uncertainty, one thing is emerging as a non-negotiable for tech companies: a well-defined cloud economic model. With the escalating requirement to optimise costs, controlling cloud expenditure has taken a prime position on the priority lists of CIOs. Even though the first quarter of 2023 alone saw an overwhelming expenditure of more than $63bn on cloud services, recent history would dictate that as much as 30% of this spend is unnecessary. This startling fact puts a spotlight on the need for organisations to have a cloud technology plan that matches their financial expectations. Let’s delve into the three key areas tech companies should focus on.

1 – Understand the “why”

One of the first pieces of advice I give to businesses looking to move to the cloud is arguably even more relevant when assessing or defining a cloud economic model – make sure you understand why you are doing this in the first place. That means thinking beyond just a business outcome or “cloud is a cool technology that everyone is using”. Instead, you need to equate three factors here:

The business factor – From a business perspective, you need to be clear on the objectives you intend (or originally intended) to achieve through migration. Is it for attaining greater scalability or fostering agile development? Are you seeking cost reduction or chasing performance enhancement? Having this clarity will not only guide you in developing a successful cloud strategy but also shape your economic model.

The technical factor – On the technical side, there’ll be a whole host of factors that may not always equate with the business reasons for moving to the cloud. Things like functionality, resiliency, availability & security requirements – even if some of these are part of your original plan, expectation vs reality can be a real factor here.

The economic factor – So finally, we come to the all-important question, how much is this going to cost? If the business reasons and technical requirements aren’t aligned, which is often the case due to the disjointed nature of teams defining them, the economics will fall short of expectations, resulting in the dreaded ‘Billshock’. Therefore, it is vital to devise a tech plan and model that matches expectations.

2 – Consider the data lifecycle

A common pitfall that businesses stumble upon while defining their cloud economic model is ignoring the data lifecycle. You need to think about where data is going to sit, and what it’s going to cost – but this doesn’t (and more importantly, shouldn’t) stay the same over a seven-year data lifecycle.

Your economic model should walk hand-in-hand with the data lifecycle, taking into account its evolution over time. The cost of storing data should diminish as it ages. Fresh data demands more resources, residing on high-performance, transactional types of storage. On the flip side, data approaching the end of its mandatory retention period doesn’t necessitate cutting-edge storage. Cloud providers may allow you to use snapshots indefinitely, but this could prove as costly as production.

The data lifecycle progression can be broadly classified into three phases – performance tier, object storage, and archive storage. As you plan this lifecycle, remember to consider other crucial factors like ransomware resilience and regulatory compliance. If your data resides on higher category storage than necessary, you’re flushing money down the drain.

3 – Discard the security vs economy dichotomy

Security and resilience are often perceived as standing in opposition to economic considerations. This especially holds when businesses are looking to upscale with the cloud, but this doesn’t have to be the case. Remember that the two main driving forces behind the shift to the cloud are enhanced resilience against ransomware and reduced costs – it’s possible to do both. Immutability originated in the cloud, and cloud-powered disaster recovery is now a staple for most businesses, with the Veeam Data Protection Trends Report 2023 revealing that 84% of businesses employ the cloud for their disaster recovery function.

As businesses navigate the choppy economic landscape, creating a cloud economic model rooted in the ‘why’ and balancing business, technical and financial considerations is crucial. A well-defined cloud economic model is not just a “nice idea” anymore – it’s a necessity for survival and growth.