How Gamification Can Help You Generate Ideas, Improve Product Design and Increase Sales

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Many people hear about gamification and think that it is not applicable to their work since they do not work in the gaming industry. However, companies like Dropbox and other have proven that …

Many people hear about gamification and think that it is not applicable to their work since they do not work in the gaming industry. However, companies like Dropbox and other have proven that gamification is applicable to any industry, product or service. This session will discuss how to use gamification in your company to generate ideas, improve product design and increase sales. Recent examples of successful gamification concepts will be shown.

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  • 1. Jose A. Briones, Ph.D. C-Level Advisors Twitter: @Brioneja AIPMM Webinar March 28, 2014
  • 2. Outline  Many people hear about gamification and think that it is not applicable to their work since they do not work in the gaming industry.  However, companies like Dropbox and other have proven that gamification is applicable to any industry, product or service.  This session will discuss how to use gamification in your company to generate ideas, improve product design and increase sales.  Recent examples of successful gamification concepts will be shown. www.Brioneja.com Twitter: @Brioneja
  • 3. What is Gamification?  Gamification, or the use of game elements to promote desired behaviors among customers and employees, has been a popular business strategy for decades.  The always-on mobile age and integration with social networks has vastly expanded opportunities for gamification.  Gamification is design that places the most emphasis on human motivation in the process. In essence, it is Human-Focused Design (as opposed to “function-focused design”). www.Brioneja.com Twitter: @Brioneja
  • 4. Market Size  Market research firms MarketandMarkets and M2, estimate the global market for gamification apps and services in between $400 & $500 million by the end of 2013.  M2 Research projects the market to grow to $2.8 billion by 2016.  An assessment by Gartner estimates that more than 70% of Global 2000 companies will use at least one gamified application by 2014. www.Brioneja.com Twitter: @Brioneja
  • 5. Market Trends  IEEE Experts Predict Gaming Will Be Integrated Into More than 85 Percent of Daily Tasks by 2020  Industries like healthcare, business and education will be integrating gaming elements into standard tasks and activities, making us all gamers.  People will accrue points for regular tasks and each person’s point cache will influence their position in society, and compliment their monetary wealth. www.Brioneja.com Twitter: @Brioneja
  • 6. Market Trends  Gamification represents the intersection of 4 megatrends:  The explosion of social media usage,  The mobile revolution,  The rise of big data  The emergence of wearable computing.  Marketers, enterprises & governments are using gamification to achieve and expand their goals. www.Brioneja.com Twitter: @Brioneja
  • 7. History  Foursquare is the most well- known mobile gamification  Early in its history, Foursquare spurred user acquisition and engagement with its focus on competition and rewards.  But Foursquare has drifted away from this gamification dimension  “The demise of superficial gamification” www.Brioneja.com Twitter: @Brioneja
  • 8. Gamification: SIMS
  • 9. Dropbox
  • 10. Dropbox History  Dropbox was the first to perfect cloud storage for consumers and reaped the benefits – user numbers leapt from 5m in 2010 to 25m in 2011, reaching 100m last year and 175m today.  Over $500 million in revenues  96% of its customers use the service free  $125/paid customer/yr.  A 2012 US survey by Forrester Research found that 14% of online adults had used back-up or storage services, with Dropbox the most popular claiming more than 25% of the market, followed closely by Apple’s iCloud.  Claims a presence in more than 2 million businesses, including 95 percent of the Fortune 500.  Dropbox raised $250 million at a $4 billion valuation from investors including Index Ventures, Sequoia, Greylock, Benchmark, and Accel, among others www.Brioneja.com Twitter: @Brioneja
  • 11. Storage Pricing Dropbox Google Drive GB $/month $/month 100 $ 9.99 $ 4.99 200 $ 19.99 $ 9.99 400 $ 19.99 500 $ 49.99 1 TB $ 49.99
  • 12. Dropbox Gamification Approach
  • 13. Dropbox Gamification  Dropquest is a game in which you have to complete a series of riddles, tasks and puzzles, and if you manage to do so, you win a 1GB addition to your Dropbox storage space for life.
  • 14. Box.net
  • 15. Box.net Promotions In mid-2012, Box raised $125 million from General Atlantic and some of the company's previous backers, valuing Box at between $1.2 to 1.5 billion
  • 16. Yesware  Yesware is another good example of growth through gamification and word of mouth.  It is a G-mail add on for customer management and tracking. Grew to 100,000 users the first year via a Freemium model that had a limited number of tracking events for free users, but awarded you more if you invited new users.
  • 17. Gamification: CandyCrush
  • 18. Candy Crush Social Gamification  Candy Crush Saga was the most lucrative iOS game in the world in May, and the second most lucrative on Android, according to analytics firm App Annie.  It has helped King reach more than 70m daily active players on Facebook and mobile devices across all its games.  Why are people playing (and paying) for Candy Crush Saga, a game that looks to be an unoriginal clone of many other games? ○ Candy Crush Android installs 50,000,000 - 100,000,000 ○ Bejeweled Blitz Android installs: 1,000,000 - 5,000,000  If social games had an Academy Awards, Candy Crush Saga would deserve an Oscar for “Best Level Design in a Freemium Game”
  • 19. Social Inventory  iTrackMine (Web, Mobile Web)  Mine (iPhone, Web)  Mine (Google plus/Android)  Delicious (Web App for Mac)
  • 20. Siemens Gamification Case Study  In March of 2011, the Siemens team launched Plantville. This online game simulates the experience of being a plant manager. Players are challenged to maintain operation of their plant while improving productivity, efficiency and facility health.  23,000 engineering professionals have spent approximately 14 minutes with the game every time they visit the site.  Build brand awareness  Engage customers and prospects  Help employees better understand the scope of the organization  Recruit future engineers (there is a dearth in the manufacturing industry)  Showcase thought leadership in sustainability and productivity, as well as the breadth and depth of products and services www.Brioneja.com Twitter: @Brioneja
  • 21. CRM Adoption Case Study  Users of Customer Relationship Management (CRM) systems face an adoption and usage challenge.  50% of all CRM implementations fail.  Badgeville implemented a “Big Game Hunter” program for Salesforce.com to increase usage and engagement with the system.  Sales people started out at “Chicken Hunters” and worked their way up to bigger and bigger game statuses, as they utilized more and more of the CRM system’s features.  For one customer, compliance increased over 40%. www.Brioneja.com Twitter: @Brioneja
  • 22. www.Brioneja.com Twitter: @Brioneja Gamification Do’s and Don’ts – Scot Harris Don’t: Do: • Throw badges and points at an existing program and say its “gamified” • Gamification requires strategy, thoughtful planning and really knowing your player • Isolate your player’s experience • Social is critical to gamification success • Assign the gamification task to your B team • Gamification is hard – it requires smart, driven people to make it work • Give short shrift to the design • All elements (Mechanics, Dynamics and Aesthetics) need to come together for gamification success
  • 23. Mechanics-Dynamics-Aesthetics (MDA) Framework  Tool used to analyze games.  It formalizes the consumption of games by breaking them down into three components:  Mechanics: Base components of the game - its rules, every basic action the player can take in the game, the algorithms and data structures in the game engine  Dynamics: Run-time behavior of the mechanics acting on player input and "cooperating" with other mechanics  Aesthetics: Emotional responses evoked in the player - joy, frustration, fantasy, fellowship www.Brioneja.com Twitter: @Brioneja
  • 24. Octalysis Framework – Yu Kai Chou  8 Core Drives of Gamification
  • 25. Summary  Consumers are no longer attracted by the novelty of competing for virtual badges and intangible rewards.  Gamified experiences must add real value to the user's experience, or they will fail to take hold  The right gamification tactics can be used to help with user acquisition, engagement, behavior modification and management, commerce and loyalty, and business learning and innovation on the enterprise level.  The key critical elements of any winning gaming strategy include  Intuitive design,  Behavioral sensibility  Balanced design  Alignment with core business objectives.  Social component
  • 26. References  Master Gamification: Customer Engagement in 30 Days  Scot Harris  Kevin O’Gorman www.Brioneja.com Twitter: @Brioneja
  • 27. Contact Information  Jose A. Briones, Ph.D.  Brioneja@SpyroTek.com  www.Brioneja.com  Twitter: @Brioneja www.Brioneja.com Twitter: @Brioneja