Blog Post #4

Intro

Throughout Chapter 4 of Rajat Paharia’s book, Loyalty 3.0, Paharia discusses gamification and all of it’s elements. It is not only applicable in areas of gaming (video games, board games, etc), but these elements can be utilized throughout the business world, working to engage and attract consumers and employees through these game-like reward systems.

Games vs. Gamification

Many people will tend to associate games and gamification, and put them into the same box; however, these two principles have some distinct differences. There are games themselves, like Fortnite, Mario Kart, or Tetris, where the main goal is to entertain consumers. Gamification takes similar aspects and brings in the business side, where the “games” have the purpose of advertising and building loyalty. It takes a pre-existing brand, product, or service and creates a type of reward system. Although gamification isn’t the same as games, it is still important, as Paharia (2013) mentions in the text, to “recall our five intrinsic motivators: Autonomy: I control. Mastery: I improve. Purpose: I make a difference. Progress: I achieve. Social Interaction: I connect with others” (Paharia, pp. 69-70). all of these have their own reasons for motivating individuals to have the desire to”win the game”. One aspect that was also discussed in the text was how games are now, more than ever, extremely digital. Take, for example how my friends and I absolutely adore the game Rummikub. We play every time we are together. I recently figured out that there is a Rummikub app, so now when we are all away at college, we can play from all different states on our phones. How brilliant?

10 Mechanics of Gamification

When discussing gamification, it is important to note the 10 Key Mechanics of Gamification.

1. Fast Feedback: No one wants slow feedback. This is especially important because notifications provide consumers with quick responses notifying them of important messages.
2. Transparency: Things like profile pages or leaderboard pages become visible to other consumers, so it naturally becomes a “competition”. It creates a community that is all focused on this shared goal.
3. Goals: All games have a goal; however, not all goals work the same. Depending on the brand or product, certain milestones or checkpoints along the line can be beneficial. Personalization also helps with this, where tailoring certain prizes or goals to the unique individual helps to boost loyalty.
4. Badges: these give individuals a visual representation of their achievement, and give them a sense of belonging and value. Badges are tied to certain achievements, oftentimes difficult ones.
5. Leveling Up: This is a simple idea, the more you spend, the higher up you get in the rewards system. This works especially well in retail or restaurants, due to thw frequency of visits.
6. Onboarding: This is the “training” mechanism that is used in gamification. Customers learn how to achieve certain milestones, and as they learn they are moving up in the system. It often includes building skill or ability.
7. Competition: This is one of the main forms of gamification. People are often motivated by having competitors who challenge one another to achieve the highest level.
8. Collaboration: Being a part of a team is something that the human being naturally craves. There can be two competing teams in a loyalty program or pre-assigned teams working towards a badge or goal.
9. Community: This is a primary component of a rewards system. Having a group of people to communicate with and compete against is important to people. It also helps in building brand awareness.
10. Points: These are an easy way to visualize where an individual stands within the rewards system, meaning how many points they earned, and how many more they need until their next reward.

Rewards

Rewards are one of, if not the biggest, form of gamification in the business world. It provides something more than just a badge or even a discount as a “prize” but gives the consumer a legitimate, tangible item. Like Paharia mentioned, it is still beneficial “when your boss congratulates you on a job well done, your soccer team votes you captain, and you get a promotion” (Paharia, p. 85). There is still value in these non-material things, and oftentimes the most meaningful rewards are not the ones we physically receive. People have a preference for experiences or limited-time offers, not always the material things.

Conclusion

Whether it be a physical reward, a monetary amount, a word of encouragement, or a mere badge, it is clear that in a world of constant discouragement, depression, and fear, people like to be appreciated and valued. It’s no secret that humans crave affirmation and acceptance, and it is vital for businesses to provide this feeling for all of their stakeholders. Similar to some of my other Biblical references, the idea that the Lord is our reward keeps coming to mind. James 1:12 states, “Blessed is the man who remains steadfast under trial, for when he has stood the test he will receive the crown of life, which God has promised to those who love him” (ESV). If we follow God, submit our lives to Him, and love Him whole-heartedly, we will receive eternal life through Him. There is truly no greater reward than our salvation in Christ.

References

English Standard Version Bible. (2001). Crossway. (Original work published 2001) 

Rajat Paharia. (2013). Loyalty 3.0 : how big data and gamification are revolutionizing customer and employee engagement. Mcgraw-Hill Education.