The word Gamification was coined by Nick Pelling creator of the game Frank in 2002. In marketing the usage of Gamification as a key trend has increased over the years. It is being used as part of various activities such as Customer acquisition, Engagement strategy, Social media marketing and Brand awareness. Apart from marketing activities it is also being used for Loyalty programmes to reward and retain existing users.
Why does Gamification matter to brands ? It is essentially for brands to have customers who are engaging with it from time to time, as it will proportionately contribute to bottom line revenues. Also Customers are brand advocates, Happy customers lead to more referral acquisition and word of mouth advertising. To engage with its customers, brands can introduce gamification as a part of its activities on its product, referral programmes, rewards, social media campaigns and many more.
Here are some examples of how Gamification programme are use by brands as part of their marketing programme.
1. Attract new customers through contests, giveaways: Contests are the general basis through which Gamification programmes are done, brands can run them through various social channels to attract existing and new customers. While building a programme, one has to ensure the correct set of KPI’s and channels of targeting the users are thoroughly evaluated to ensure capturing of cluttered customers doesn’t take place. For instance while running contests on Social Media it is very easy to get engagement on social channels for participation but most of the time this users are from contests communities and don’t carry any add on value for the brand.
2. Educate customers about product offerings: Apart from customer acquisition campaigns, contests can also be used to create awareness and educate customers about their sister products and new product launches. For Instance Xiaomi is predominately know for its electronic products apart from Mobile, TV, Sound devices they have also introduced products such as Luggage bags, Air masks and many more. To create awareness for their Luggage bags, they have integrated it as part of hint for one of the contest which they were recently running.
3. Acquisition on products such as App and Extension: Apart from running contest, brands can use contests as a channel to drive installs on products such as App and Extensions. For Instance in GrabOn Cricket Fantasy League users are awarded with additional points if they download the App and Chrome extension through this activity they are able to target their existing and new customers to convert on their other platforms. While running activities as this one has to ensure some activity as transaction to engage with the product is embedded so users don’t uninstall the app merely after downloading the application or extension as such.
4. Word of Mouth through Referral Programmes : According to Nielsen, 83% of consumers say they either completely or somewhat trust recommendations from family, colleagues, and friends about products. Referral programmes can act as a strong customer voice to acquire potentials customers. Many brands run various referral programmes where their existing users are rewarded with Cash backs, Vouchers, Free subscriptions for referring their friends and other users.