Monday, August 11, 2014

What Is Gamification? Tom McMorrow Talks Game Mechanics, Enticing Millennials & Today's Very Cool Power of Engagement (Hey, Badges Too!)

What exactly is gamification? That's one very complex and perfect question for Tom McMorrow, marketing and gamification specialist - and one impressive social media and new age marketing strategist - at Asterism* Group. See what Tom has to say!

Tom McMorrow: Gamification is the application of video game mechanics to non-gaming environments. This can range from implementing just one or two of the core mechanics of a successful video game to designing a fully interactive user experience. To clarify, successful video game developers use different video game mechanics to satisfy various human needs and keep the player engaged. The most commonly used gamification mechanics are points, levels, challenges, virtual goods, leaderboards and gifting/charity. Each of these represents and satisfies a specific human need. Points satisfy our need for reward. Levels satiate our desire for status. Challenges pacify our quest for achievement. Virtual Goods quench our search for self-expression. Leaderboards fulfil our craving for competition. Finally, Gifting/Charity accomplishes our ambition of altruism.

So, gamification is another way for businesses to optimize user engagement?

Tom McMorrow: Precisely. It is important to note that ‘user’ doesn’t just mean ‘customer’. Some of the most successful implementations of gamification came when companies used game techniques to train, motivate and enhance their workforce. As we all know, a happy and well-trained workforce often leads to greater profits. An example of this can be found in what has colloquially become known as the Target Checkout Game.  

In the mid 2000’s, customers at Target had the same major complaint of slow checkout lines. The establishment tried remedying this situation with additional registers, to no avail. It was then that Target implemented a system to ‘grade’ employees on their checkout speed with either a green G or red R. After an employee scanned an item, the G or R would appear on the screen. The green G meant the time between items was acceptable, the red R meant the employee was too slow. At the end of the transaction, the G to R ratio was shown as a percentage. Employees were notified that scoring below the suggested percentage (82%) they could expect reprimand, whereas scores above would lead to advancement. 

The result: Not only did Target’s checkout speed metric dramatically improve, but employees reported increased job satisfaction. This added benefit is due to the ‘game’ increasing the employee’s sense of agency, or belief that you are in control of your own destiny. Target is just one example where game mechanics helped optimize employee engagement, there are many others as well.
  
Why do websites leveraging gamification increase opportunities for lead generation and brand loyalists?

Tom McMorrow: Websites that utilize gamification harness the power of engagement. Many websites are static, and this drives down the desire for repeat visits. Once a user comes and consumes the information on a static website, there is no need to stay on or revisit the site anymore. In addition, there is nothing particularly noteworthy that would motivate the user to refer other leads to the site. Through proper gamification, users are invested in site activities. One example is the gamification of the Quantum of Solace website. Originally, the website was very static. 

Users could watch trailers and download wallpapers but not much else. As such, repeat visits to the site and lead generation for the franchise was an issue. After a graphic artist was hired to gamify the website, repeat visits improved dramatically along with word of mouth buzz. This was accomplished by allowing each user to ‘become’ a secret agent. Points were assigned to different activities on the site, and leaderboards were prominently displayed to show who had the best scores. In addition, the scarcity principal was used in the form of ‘self-destructing’ messages sent to user’s mobile devices that offered the opportunity to earn additional points for a limited time. 

Results showed that the conversion was extremely successful in increasing both customer retention and brand loyalty. Gamification of websites allows companies to continually engage customers through clever use of game mechanics. Shown below are the ‘before’ and ‘after’ pictures of the Quantum of Solace website. (Images courtesy of Google)

Before:





 After:



Is gamification related to social media?

Tom McMorrow: Yes. While many of us think of the combination of gamification and social media resulting in a torrent of Candy Crush invites, there’s more to it than that. LinkedIn, for example, has the “Profile Strength” meter that fills up and shifts colors to notify the user of their increasing status. This is a gamified element that directly mirrors the concept of Levels mentioned previously. In addition, there are also notifications to show your profile’s ranking and whether it has increased or decreased. This feature is correlated to the Leaderboard element also cited earlier. Often utilization of gamification is very subtle, so as to not alienate non-gaming users.

What do you think is the coolest thing about gamification - the absolute coolest attribute?

Tom McMorrow: I believe the human element is the most fascinating component of gamification. That is, the idea that we as humans perform best when exposed to game mechanics. When presented with a challenging but achievable situation, the body produces adrenaline that makes our reflexes faster. Every gamer knows this feeling. Elevated heart rate, pupil dilation and increased capacity for stimulus processing. This produces what is known as eustress, or ‘positive stress’. In a properly designed game (or gamified system), a user will be in a eustress behavioral loop (EBL). 

In an EBL, the user is faced with an achievable challenge which produces eustress. When the challenge is complete, the user’s system is flooded with dopamine which motivates them to continue. This ‘tense and release’ structure is the hallmark of good games and gamified systems. The ability for gamification to bring out the best in people’s performance is what I find the most interesting. A good gamified system should engage your customers similar to the eustress behavioral loop.

So, gamification drives brand awareness and user engagement? Does that mean gamification should be a component of any competitive marketing plan?

Tom McMorrow: Used properly, yes. An ideal example of this is the creation of the America’s Army video game. In the late 80’s, the US Army attempted to rebrand itself as an adventure as opposed to a responsibility with the “Be all you can be” campaign. Despite this makeover, recruitment was exceptionally slow even into the 90’s. At this point, the Army attempted to entice young recruits with scholarships, with dismal results. In 2002, retired colonel Casey Wardynski created the America’s Army video game, allowing players to virtually experience the armed forces. The game became the single most cost-effective recruitment tool in the military’s entire history, according to sworn congressional testimony by the Army. The project took 10 years and $33m to build out of the military’s $700m annual budget for recruitment. 

A study was done in 2008 by MIT that found that 30 percent of young Americans had a more favorable view of the Army due to playing the game. Also, the America’s Army video game was proven to have a more substantial impact on recruitment than all other forms of advertising combined. While not all companies have the budget of the US Army, even small uses of gamification can yield inexpensive solutions to tough problems. It is my sincere hope in the coming years that more companies adopt gamification as another tool in their overall marketing approach.  

Is gamification right for all businesses? What are the ideal demographics and targets for gamification success?

Tom McMorrow: While I can’t speak for all businesses, I feel gamification has an appropriate place in most companies. While many people assume that the ideal demographic for gamification success is the millennial generation, this is not entirely true. Millennials are most likely the target demographic for an immersive user experience such as Americas Army. However, older generations may require a more nuanced approach. For example, say a doctor’s office wanted to create an app to remind their aging Baby Boomer patients to take medications on time. While an interactive experience may be overwhelming, there is a strong probability patients would respond to gamified elements such as progress meters. The demographic for gamification as a concept is all ages; however the implementation must be modified for different age cohorts to achieve maximum benefit.
  
What's your favorite gamification creation - badges, challenges, gifts. Or, is it all game mechanics?

Tom McMorrow: All gamification elements are a direct translation of good game mechanics. That being said, I feel different personality types have certain game mechanics they respond best to. People with exceptional generosity tend to enjoy the mechanic of gifting. Others who are strongly status oriented may be drawn towards levels. Personally, I am hardwired to get the maximum enjoyment out of personal accomplishment. As such, I feel challenges are most rewarding to me. The knowledge that I completed an exceptionally difficult challenge is incredibly satisfying.

What is the future of gamification, for business marketing, personal branding and overall awareness campaigns?

Tom McMorrow: Over the past ten years, we have seen an explosive growth in the mobile device market. The widespread use of smartphones ushered in the personal device event horizon. As such, it is my firm belief that the future of gamification is headed towards mobile consumption. Wawa (a regional convenience store) recently released a mobile app for its “Hoagiefest” promotion. Finance apps such as Personal Capital allow investors to monitor and interact with their portfolios in a gamified way. There are even apps to monitor users sleep patterns and help them maximize their rest. I believe the next logical step is wearable smart devices such as smart watches and Google Glass. It is my hope to see such devices incorporated into everyday life. The possibilities of gamification on these emerging technologies is near limitless, and companies would be wise to start allocating resources in that direction. Gamification is rapidly emerging as a winning strategy, from lowering training costs and improving employee efficiency to maximizing brand recognition and loyalty. While the future is impossible to predict, I can say this with certainty: Gamification is here to stay, and for companies that play to win, it can help them get to the next level.


Tom McMorrow is the Marketing/Gamification Strategist at the Asterism* Group. Tom is an expert in Game Design and Development, with a passion for marketing and social media. Visit www.asterismgroup.com.