This document provides an overview of a presentation on gamification and loyalty by Marigo Raftopoulos. The presentation discusses how gamification can be used to design customer experiences and loyalty programs. It notes that customers are increasingly bored, disengaged, and uninspired by traditional loyalty programs. The presentation then covers how game elements and game thinking can be used to better engage customers. It provides examples of gamification from companies like Nike, Starbucks, Jay-Z, and Expedia. The presentation also discusses future opportunities with technologies like augmented reality and virtual reality. It concludes by offering 10 key steps for implementing gamification, focusing on being courageous, curious, creative, and putting customers first.
2. We are bored,
disengaged &
uninspired
Engaged
Disengaged
Enrolled
20%
40%
40%
Towers Perrin 2011; Gallup 2013;
CEO Institute 2013
3. Carl Jung
Modern Psychology
Who Am I
Sri Ramana Maharashi
Joseph Campbell
Hero’s Journey
Follow Your Bliss
Jiddu Krishnamurti
4. Loyalty by Design
• Today’s session
– Challenges for loyalty
– What is gamification
– Design customer experience
– Examples and case studies
– Technology & platforms
• Challenge Questions
– Learn from each other
• 10 key steps
– Set you on your way
– Questions
5. About me
• Independent business strategy advisor
– Private & public sector
– Technology startups and incubators
– EU Commission Horizon2020
– Mixing business & games for 10+ years
• PhD researcher: gamification and
business innovation
• Technology neutral
6. What do customers want from loyalty
programs?
• Not great news: High cost,
high maintenance, low loyalty
• Customers have been trained
to expect financial rewards
• They think you’re incentivising
them to spend more (trust
issues)
• Need to move to a positive,
customer centric model Save money Receive rewards
Earn rewards Other
Technology Advice 2014
57.4%37.5%
7. Key challenges for customer loyalty
• Brand loyalty is waning
• Milennials are not engaging
• High cost to run
• Poor design
• We’re at an impasse
• Significant opportunities emerging
8. Do you really know your customer?
What are your assumptions
about your customer needs,
wants and desires?
What are your default decision
making models? How do you
test & revise them?
17. We are bored,
disengaged &
uninspired
Engaged
Disengaged
Enrolled
20%
40%
40%
Towers Perrin 2011; Gallup 2013;
CEO Institute 2013
18. When you are listening to
somebody, completely, attentively,
then you are listening not only to
the words, but also to the feeling
that is being conveyed, the whole
of it, not part of it.
Jiddu Krishnamurti
(via Joseph Campbell)
19. How do your customers FEEL?
Are you taking more than you are
listening?
20. How gamification can be used in loyalty
• Game elements, game thinking
– Engage interest, connect, intrigue, interactive
– Part of a blended approach
• Using behavioral economics, to frame choices
with game mechanics
– To engage and motivate
– Enhance systems
– Trigger responses
• Deep customer engagement
– Rethink and redesign end-to-end systems
– Delighting your customers
– Emotional connection
– Designing experience
– Long term relationship rather than a short term fling
24. Gamification in Loyalty (3/3)
3. Playful Experiences
• Deep connection with the customer. Create long term
relationships. Customer journey focused. Integrated.
Expedia.com geo-
location game to build
relaltionships
“Fantasy Football” rewards
loyal customers with an
active experience
25. Strategy always comes first!
• Do you really know your customer?
– Challenge your assumptions about who they are, what their
needs are, what inspires them
• Clearly articulated business goals?
• Does this fit into your overall Brand identity,
promise and narrative?
• Are you designing a holistic, integrated
customer experience?
27. Loyalty Experience Design Matrix
(simple example using only financial metrics)
Shift existing
customers to spend
more or higher
margin
Acquire new
customers at high
margin
products/larger
basket
Retain existing
customers,
spending the same
levels
Acquire new
customers at entry
level spend
CUSTOMERS
SPENDING
Retain Acquire
Uplift
Maintain
A C
DB
28. Customer experience design is different in
each quadrant
Shift existing
customers to spend
more or higher
margin
Acquire new
customers at high
margin
products/basket
Retain existing
customers,
spending the same
levels
Acquire new
customers at entry
level spend
CUSTOMERS
SPENDING
Retain Acquire
Uplift
Maintain
ENGAGE
STABILIZE ENGAGE
INNOVATE
Tactical
promotions,
discounts and
rewards won’t
influence long
term behavior
change
A C
DB
29. Growth options will require
re-engagement on a different level
Shift existing
customers to spend
more or higher
margin
Acquire new
customers at high
margin
products/basket
Retain existing
customers,
spending the same
levels
Acquire new
customers at entry
level spend
CUSTOMERS
SPENDING
Retain Acquire
Uplift
Maintain
ENGAGE
STABILIZE ENGAGE
INNOVATE
Tactical
promotions,
discounts and
rewards won’t
influence long
term behavior
change
A C
DB
*
*
*
*
Growth options
30. Gamification optimizes loyalty (1/2)
• Tool to influence consumer behavior
– Frame choices & pathways
• Customer centric by design
– Human centered design
• Digital, multichannel, interactive, trans-media
– No media is independent of each other
31. Gamification optimizes loyalty (2/2)
• Seamless customer experience
– One company narrative
• Strategic mindset
– No gimmicks which are inauthentic
• Data generating
– data analytics and social media
37. Nike own the customer & now
control their supply chain
7 million runners
Brand loyalty
Big Data
57,000 materials
Vendor index
Open Data
Customer insight
Open access for devs
Business innovation
38. New product awareness: Help athletes stay warm while training, points, awards,
leaderboard. Try products. Win a meeting with the athletes
58. An eye to the future
Gamification-enabled technologies
59. An eye to the future:
Gamification + Virtual/Augmented Reality +
Web/Mobile
Augmented Reality shopping: delight,
curiosity, discovery, awareness,
marketing, feedback
+ Gamification enabled: Playful experiences, onboarding, feedback-loops,
rewards, prizes, sharing, data capture, tech integration
Heinze AR app: customers win cookbook
& prizes when camera placed over the
product. Polls, location & preferences
60. An eye to the future:
Gamification + Virtual/Augmented Reality +
Web/Mobile
3D Augmented Reality
virtual fitting room
(shopping center)
Virtual Reality Fitting
room (web, home based)
+ Gamification enabled: Playful experiences, onboarding, feedback-loops,
rewards, prizes, sharing, data capture, tech integration
61. Gamification platforms for loyalty (1/2)
• Technology options:
• Digital gamified apps and web platforms (80+)
• Game and app developers
• Media agencies
• Experience & service designers
• Many mechanics in use – be selective & strategic
• Average cost of traditional loyalty programs US$500,000
(2010) can now be run for US$1000 on new platforms
• Only 5-10% business have a loyalty program – this
technology opens affordable options, esp for SMEs
62. Gamification platforms for loyalty (2/2)
• Engaging on-boarding mechanisms based on
motivation & behavioural design to:
• Join or sign up
• Stay in the program
• Participate in the program
• Integration with other digital technologies – mobile,
web, email, sms, geo-location
• More convenient and engaging
• Prolific data collection and analytics
• Intelligence before/during/after purchase
64. Ten Key Steps: 5+5
5 things to be, 5 things to do
• This may not be what you think
• Customer strategy
• Product strategy
• Technology strategy
• Capability strategy
• But you already know how to do this
65. Ten Key Steps: 5+5
5 things to be:
• Be courageous
• Stretch the boundaries of your product/service model
• Be curious
• What really makes your customer’s tick? Keep asking WHY?
• Be creative
• Dare to try something different, even if you think you can’t.
• Be playful
• Socrates: “an hour of play, a year of conversation”
• Be proactive
• Or else your competitors will. The time is never ‘right’.
Courageous
Curious
Creative
Playful
Proactive
66. Ten Key Steps: 5+5
5 things to do:
• Loyalty is everyone’s job, so share the love
• NASA janitor: “I’m helping put a man on the moon”
• Put a team together tomorrow and run a design-thinking exercise
• Rethink your product, service, and your loyalty paradigm with ‘radical ideas’
• Ask your customers and really ‘listen’
• Be prepared to let go of company folklore (satisfaction is not loyalty)
• Experiment by starting small on one easy project
• Big things grow from there (Commonwealth Bank)
• Borrow ideas
• No need to reinvent the wheel (Expedia on JayZ)
For illustrative purposes only, let’s look at the more elusive of human emotion that drives the bulk of human motivation and behaviour – that of desire. Reiss work shows that there are 16 core human desires that are universal and timeless – we will only look at 8 of these here today and see how thee best gamification taps these desires to make people feel better about themselves and their work. Good gamification taps the human psyche, these are intrinsic motivators
Competence, achievement, influence. Things that empower people to excel in things they do. Example Nike+ was able to socialise a solitary sport into a global community of 7 million runners (and the data collected through gamification helped the company gain control over their supply chain)
Freedom, self reliance, control over ones destiny. Remission game for young cancer patients
Morality, character, and principles form the foundation of belonging in our communities. When the game FoldIt issued a call for action to help solve part of the riddle t the aids virus, 240,000 enrolled to play and solved a problem in three weeks that the University of Washington had struggled with for over 15 years
Knight foundation find and seek game for the city of macon
Ownership, collection, building, loss avoidance. Simulations run by Siemans, IBM, Cisco that teach and train by giving you control and responsibility. These are ‘safe fail’ environments that don’t work against you, they guide you through.