Press Start – The Future of Businesses Lies in Gamification

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.