Game-Based Marketing

GAME-BASED MARKETINGInspire Customer Loyalty Through Rewards, Challenges, and Contests

AUTHORS: Gabe Zichermann and Joselin LinderPUBLISHER: John Wiley & Sons, Inc.DATE OF PUBLICATION: 2010206 pages

Game-Based Marketing By Gabe Zichermann and Joselin Linder

FEATURES OF THE BOOK

Game-Based Marketing introduces readers to the possible applications of game mechanics, or “Funware,” in traditional and future marketing campaigns. Moreover, it shows just how vital these strategies will be to the success of advertisements in a society that is bombarded with new technology and opportunities for game play everywhere it looks.


THE BIG IDEA

In Game-Based Marketing, the authors describe how marketers can increase loyalty and customer interaction

by introducing game mechanics.


INTRODUCTION

Traditional advertising has given us such memorable figures as the Budweiser frogs and the Nestlé rabbit, but today even millions of dollars in funding and powerhouse branding are not enough to build an effective advertising campaign. The role of technology in our lives is forcing marketers to rethink the way they deliver their message. Consumers are increasingly impatient with commercials and gaining more tools to skip them every day.


THE ARGUMENT FOR LOYALTY

Now that consumers are graced with easy access to almost limitless choices in every part of their lives, it is both harder and more important than ever to breed brand loyalty. Taking a cue from web terminology, businesses can create “sticky” content or programs. Stickiness describes the ability to not only generate new business, but also consistent and repeated use—in other words, loyalty. The stickiest websites are game based, especially those with levels, scores, and virtual economies. Today’s marketers have unprecedented ways to use these same concepts in marketing programs.


PASSIVE PLAY

There are four elements that breed game mentality:

Status and level. People covet special treatment, especially when it is on display for others to see.Points. Keeping score encourages people to try harder to earn more points, and encourages competition.Rules. Unstructured games devolve into chaos quickly, so no one wants to play a game with no rules. Demonstrability. When customers can see other people get preferential treatment they are encouraged to try to earn that status themselves.


SOCIAL NETWORKS AND LEADERBOARDS

Changes in technology are opening new marketing doors even while they close old ones. Traditional advertising opportunities are falling steeply as technology makes it easier for people to circumvent commercials and ads. The huge growth of social networks like Twitter and Facebook are opening up opportunities for advanced game-play that builds upon earlier loyalty programs, which generally followed a simple rebate/point scheme or “buy-X-get-Y” system. The most powerful tool for encouraging social media game-play is the “leaderboard,”which allows users to see scores from the top players in a game and encourages them to try to increase their own score.


FUNWARE MECHANICS: POINTS AND BEYOND

Points systems are among the oldest loyalty programs, and they give marketers control over the behavior-to-reward relationship. The key is the abstract nature of the points, since the only value they have is given to them by their issuer. Marketers can offer different rewards for different amounts of points, and they can freely change the value of each point.


PRIZES AND GAMES OF CHANCE

Choosing the right prize is an important step in game design, and rewards must fit the scope of the competition. For example, a small prize for a demanding challenge will stop people from participating. Moreover, the style of the prize should be in line with the challenge. In some cases money is appropriate, while other times goods or special opportunities might be the answer. Some prizes can have added benefits for the competition, like attracting media attention or encouraging “incrementalism”—advancing a business objective in steps.


THE ULTIMATE FUNWARE: FREQUENT FLYER PROGRAMS

Frequent flyer programs are often the only way airlines can differentiate themselves, so it is no surprise that they have become so advanced that revenue from these loyalty programs can eclipse the earnings from airfares alone. By turning them into games, airlines have found a way to engender customer loyalty to an extent that no other part of their business model can possibly compete with.


KNOW THY PLAYER

A major consideration in game design is the type of player the game is supposed to attract. In the context of Funware, there are five main player types:

Achievers are driven by a desire to meet goals and gain status and points. They prefer a game that is winnable, although playing well may be more important than finally winning. Perhaps most importantly, they desire praise and recognition, and so do not like games that only attract other achievers.


KNOW THY PLAYER

Socializers want to meet and interact with other people in their game. They prefer cooperative to competitive play, and generally have long lists of friends and contacts.

Explorers like nothing better than digging through a complex environment and uncovering new challenges and tasks. They are most likely to set their own goals, and so do not need a game with extensive leveling systems or objectives.


KNOW THY PLAYER

Killers are competitive and love beating other players or showing off their power. Games must be winnable to attract killers, and they prefer it if the odds are stacked in their favor.

Naïve players are those participants in Funware who do not realize that the game even exists. Designers must be able to capture the naïve player’s attention and encourage them to engage in play. If not, the game is wasted on that player, and they will only make it less enjoyable for those who actively participate in play.


THE FUTURE OF GAMERS: GENERATION G

Technology has created a gap between older generations and those born after 1998, or Generation G. This younger generation is defined not only by their technological integration and social networking, but also by the fact that their principal form of entertainment is gaming. Responsible for this is an explosion of new technology not only in gaming platforms, but mobile and social technology as well. Some studies suggest that 60 percent of children under 18 years of age play video games every day, and the time they spend playing increases every year. Each week, the heaviest users spend up to 16 hours just playing games.


MOTIVATING SALES WITH FUNWARE: GETTING EMPLOYEES INTO THE GAME

Funware applications are not limited to sales and customer loyalty. They are also useful when applied to motivating staff and sales forces, and the potential applications of game mechanics like leaderboards and levels often work in the same ways. Incentivizing positive behaviors through rewards or points schemes is a particularly powerful method of motivating employees, especially considering the drawbacks of threats and other forms of negative reinforcement. Moreover, just like for regular consumers, game mechanics can foster loyalty among employees.


EVERYONE WINS: GAMES IN YOUR BUSINESS

Businesses must incorporate Funware into their overall structure and regularly updated or redirect their advertising strategies to meet their needs. While game-based marketing is an important consideration, it is still only one part of a fully realized marketing approach. Instead of moving away from traditional ads and branding strategies, Funware needs to be incorporated directly into these marketing methods in order to maximize their continued effectiveness. Once the often complex initial hurdles of Funware integration are overcome, its ability to transform marketing campaigns is nearly limitless.


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Game-Based Marketing