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How Brands Boost Customer Involvement with Gaming & Gamification

Gaming und Gamification
By Anna Pak
Anna Pak

11 Min

April 14, 2023

BY OLIVIER LABORDE FOR ADELLO MAGAZINE

At the core of any business strategy lies the customer experience. While once a great customer experience was considered a competitive edge, it has now become a business necessity. In today’s market, businesses must strive to provide innovative experiences that distinguish them from competitors. By incorporating new technologies, brands can offer personalized and captivating experiences that span multiple touchpoints.

If you deliver a quality customer experience, you will improve customer satisfaction and leave them with a lasting memory. According to the Temkin Group consulting firm, 86% of consumers with a good customer experience are more likely to buy from the same company, compared to only 13% of shoppers with a bad experience.

Innovations Driving Engagement

Brands should aim to provide a unique and enjoyable social experience that stirs emotions. Innovations such as personalization, conversational interfaces, video, gamification, and new territories of expression such as gaming and metaverse are crucial in creating engaging experiences that turn customers into loyal consumers and brand advocates.

Gamification

Gamification vs. Gaming

Gaming refers to playing electronic games, usually on a computer, console, or mobile device. Video games are a form of interactive entertainment that allows players to engage in a virtual world with specific objectives, challenges, and rewards. It can be enjoyed individually or socially, either online or in person, fostering both solitary and communal experiences. There are various types of games, such as action, adventure, sport, strategy, puzzle, and simulation games, among others. People of all ages, genders, and backgrounds worldwide enjoy gaming as a popular pastime.

Gaming serves as entertainment, a platform for socializing with friends, and an escape from reality. Video games immerse players in engaging challenges, providing a sense of accomplishment and reward as they progress. Additionally, gaming fosters competition through online multiplayer games and esports tournaments.

The Role of Gamification

On the flip side, gamification applies game design elements and mechanics to non-game contexts, motivating and engaging people to achieve their goals. It enhances non-game activities by leveraging people’s innate desires for achievement, competition, and recognition, making them more enjoyable and motivating. Companies have applied gamification in various contexts, including education, healthcare, business, and marketing, among others.

For instance, gamification has been used to encourage students to learn by incorporating game-like elements into the learning process, such as points and badges for completing assignments or quizzes. In healthcare, gamification has been used to motivate people to exercise and adopt healthy habits by tracking their progress and rewarding them with points or badges. In any business, the goal is to boost the client’s interest and motivation.

Game triggers, such as points, rewards, badges, recognition, leaderboards, etc, are used to make a customer relationship more fun and engaging.

Gamification, a nugget for the customer experience

Gamification has become a popular trend in recent years, with companies using game mechanics and signals to make their products or services more engaging for customers. Businesses have widely adopted this technique to enhance customer experience and improve brand loyalty. The gamification market is poised for substantial growth in the upcoming years as more companies adopt this technique to meet their business objectives effectively.

Market Growth and Potential

According to the report “Gamification Market—Growth, Trends, COVID-19 Impact and Forecasts,” published in 2021 by research firm Mordor Intelligence, the global gamification market was valued at $10.19 million in 2020. It may reach $38.42 million by 2026.

Integration Across Industries

Gamification is not a new concept in marketing. Still, the increasing penetration of mobile devices and the rise of social media have opened up new possibilities for gamifying the customer experience. By leveraging the power of both, companies can engage with customers throughout the day and capture their attention more effectively.

Gamification can be used at different stages of the customer journey, making it an ideal tool to make the buying experience more fun for customers.

Business Objectives Achieved Through Gamification

Businesses can use game-like mechanics to enhance customer experience. This helps them achieve objectives more effectively and stand out from competitors. Goals include generating leads, capturing attention, increasing engagement, reinforcing brand image, building loyalty, creating brand ambassadors, boosting virality, and improving references.

Successful Examples

KFC Japan’s use of gamification with the mobile advergame Shrimp Attack is a successful example of how companies can leverage game mechanics to drive engagement and increase sales. The use of mobile technology allowed the game to be easily accessible to a large audience. It also makes it an effective tool for promoting the new product line. The game’s premise was straightforward: players had to swipe away virtual shrimp falling from a cartoon sky and were rewarded with vouchers for the restaurant’s new product line.

According to Gamify, the company that created the game, 22% of people who played the game redeemed their vouchers. The company had to adjust campaign timing to account for increased demand.

gamification
Gamify, KFC Japan – Shrimp Attack

In China, gamification is a key pillar of social commerce, especially on the social network WeChat through Mini Programs.

Burberry’s WeChat Mini Program Engagement

In 2018, Burberry launched a Mini Program on WeChat, a popular social media platform in China, to engage with its Chinese consumers and create a personalized customer experience. The Burberry Mini Program on WeChat allows users to access exclusive content, personalized recommendations, and virtual try-on features for the brand’s products. Users can also participate in various gamified activities. For example, they can unlock features, win gifts, and customize an avatar to enhance their overall brand experience.

Gamified Social Gifting Functionality

One of the key features of the Burberry Mini Program is the gamified social gifting function. This allows users to send virtual gifts to their friends on WeChat. Users can redeem the gifts for real-life rewards, such as in-store discounts, creating a fun and engaging way for them to interact with the brand and share their experiences with others.

Impact and Future of Gamification in Marketing

As gamification continues to gain popularity in marketing, we can expect to see more companies exploring innovative ways to incorporate game elements into their campaigns. It has proven to be a powerful lever to enhance the customer experience and increase revenue.

According to the TechValidate study, 30% of companies worldwide that have integrated gamification into their strategy have improved their conversion rate by more than 50%. The technique has become an essential tool for businesses looking to differentiate themselves from the competition and offer the best possible customer experience.

Will gaming succumb to social commerce?

Gaming has undergone a spectacular transformation and a rapid ascent in 50 years. In 2022, there were 3.2 billion gamers in the world, generating a revenue of 184 billion dollars. Video games owe their evolution to technological progress and innovation but also to gamers who have helped create practices that go beyond mere entertainment.

Video games are not just for playing anymore. They are becoming a medium of their own, true digital social spaces for social expression, where players have fun, meet, attend concerts, fashion shows and shop…

Virtual Concerts and Cultural Phenomena

In April 2020, rapper Travis Scott attracted more than 12.3 million players during his first virtual concert on Fortnite. The concert was shown four times in different time zones for players around the world, and 27.7 million people watched the show in total. The game’s publisher also launched a virtual outfit and accessories to accompany the show. According to Forbes, this virtual tour earned the artist $20 million in merchandising sales.

Brands Embracing Gaming as a Marketing Channel

Brands that want to reach a new audience efficiently have a new space for expression and seduction. Video game advertising has been around for a while. However, brands are now offering creative solutions to promote a product or service and connect with gamer communities without annoying them. Gaming could be the new Eldorado for brands: Balenciaga comes to Fortnite, Louis Vuitton comes to League of Legends, Gucci comes to Roblox, Lacoste comes to Minecraft, Valentino comes to Animal Crossing…

gamification
Photo from Fortnite.com

Brands can adopt different strategies to invest in video games and seduce the gamer community: In-Game Advertising, Advergame, Sponsorship and Productising.

  • In-game advertising is the integration of advertising within a video game. It can take the form of a banner, a video spot, a product placement, etc.
  • Advergame is a branded game designed by the company to promote its brand image. It is available directly on the brand’s website or through an app.
  • Sponsoring: E-sports and video streaming offer brands new opportunities to introduce new collaborations, innovative activations and stunning collections through sponsorship.
  • Productising is to convey the brand’s message through the product itself.
  • Influence marketing through an influencer that promotes, showcases and recommends brand products in games or streaming.

In-game advertising goes further than the banner around the soccer fields of the video game FIFA. It is no longer a matter of simply integrating an ad into a game. Now, it’s about appropriating its universe and sometimes even becoming a player. The brand is an integral part of the game, with a dedicated and exclusive map, virtual stores, and virtual products and services. This means understanding the codes of the game and the uses of players to become a player itself.

Gucci Garden in Roblox

For instance, Gucci has unveiled a brand-new experience, “Gucci Garden,” within the Roblox video game for the Gucci Archetype exhibition from May 17 to 31, 2021.

A virtual Gucci Garden space was open to all on the video game for two weeks. The day after its release, the virtual exhibition generated more than one million visits. During the event, visitors could purchase virtual objects inspired by the House of Gucci’s collections. These items were available in the Roblox catalog and changed daily depending on the theme of the room visited. For example, there were Gucci sunglasses, handbags, hats and shoes.

On the advergame side, Ralph Lauren has offered a series of digital experiences for Christmas 2020: an augmented reality experience, a virtual reality store and a game, “The Holiday Run.” Ralph Lauren’s iconic mascot, “The Polo Bear,” was at the center of the game, racing to Ralph Lauren storefronts around the world to collect gifts and discover new products. The game, available on the brand’s website and Facebook Messenger, was “shoppable,” meaning that the products in the game could be purchased.

Gamification in Customer Experience

Customer experience has become a critical factor in any business’s success. A quality experience can improve brand image, attract new prospects, create new business opportunities, and build loyalty. To offer the best possible customer experience, companies must constantly innovate and differentiate themselves from the competition. Gamification of the customer experience has emerged as an innovative technique that can help businesses achieve these objectives.

The gamification technique involves integrating game mechanics and signals into non-game applications, making them more engaging and fun for customers. These mechanisms can be anything from a score, a ranking, a quiz, or other game-like elements that make the experience more exciting for customers. By integrating gamification into their customer experience, businesses can improve customer engagement, strengthen brand loyalty, and turn customers into brand ambassadors.

The Rise of the Gaming Industry

The gaming industry has surpassed movies and music in profitability due to technology advancements and a burgeoning community. E-sports and platforms like Twitch are driving this growth, making gaming a new frontier for brands to explore.

Some are starting to express themselves on these platforms. Wendy’s and the NFL are marketing on Fortnite, Mastercard on League of Legends, Walmart on Roblox, Burberry on Minecraft, and Marc Jacobs on Animal Crossing. These collaborations offer huge opportunities to brands. They help promote collections, sell virtual accessories in the virtual stores of the platforms or a hoodie IRL (In Real Life) in a physical store and engage new communities.

The Importance of Authenticity and Creativity

Furthermore, brands will need to be wise. To succeed in the gaming space, they need to be authentic and creative because players will call out brands that get it wrong. You can’t advertise in a community like Fortnite without authority, especially if you are a non-endemic brand. And, there is not one, but many gamer communities.

Good luck!

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