Gamification is the process of using gaming mechanics to activities that are non-game in nature with the aim of changing behavior. In other words, it is a business way of integrating marketing, online services, website content and other business activity to spur up the level of engagement and participation (Zichermann and Linder 6). In the business world, investors can use Gamification to solve specific business problems in addition to increasing customer loyalty, promoting brand image, and motivating employees to perform better. In this assignment, I will consider solving a loyalty challenge in marketing for a company in the entertainment industry.
The gaming mechanics in use will be points, levels, virtual goods, and leader boards while the corresponding game dynamics will be rewards status, self- expression, and competition respectively. In the process of building customer loyalty and consumer participation, the company will give points for every item purchased such as wallpapers, DVDs, and movie tickets. The company will then reward the consumers with more products for a certain amount of points. As the points increase with frequent purchases, the company will assign the consumers different levels depending on the number of points. Each level will represent the status of the consumer in the business in that it will regard those on higher levels as brand loyal. Leader boards on the other hand will show the winner, that is customers with the highest points. This will create completion to purchase the goods to the advantage of the firm. Virtual goods as a reward will be exciting and encouraging consumers to participate through interaction with the firm’s website content thus providing expression.
The firm will seize the opportunity to gather information about each customer through their expressions, participation data, and engagement levels. This information will enable them build a rich detailed profile on each customer that will enable them serve their tastes to increase their loyalty. The benefits that will result from the gaming process will be increased consumer loyalty, increased sales, increase in consumption of promotional content, and finally increased user-generated content.
Zichermann, Gabe and Joselin Linder. Game-based marketing : inspire customer loyalty through
rewards, challenges, and contests. Hoboken: N.J. : Wiley, 2010. Print.