http://www.istockphoto.com/stock-photo-12524067-row-of-apples.php?st=2d9b268http://www.istockphoto.com/stock-photo-15498964-red-apples.php?st=2d9b268Loyalty programmes have used social currency for yearsLounge access = helping me belong Priority Queuing / Black Card = helping me look signficantNeed to better utilise this form of reward to allow additional levels of recognition to provide early engagement and wider interaction
What’s changed?• Why are consumers acting differently and why is this becoming much more significant? SOCIAL SINGLE WHEREVER, NETWORKS IDENTITY WHENEVER With over 700m people on Increasingly brands and As smartphone/tablet Facebook and growth rates services are using social adoption continues it’s of 100m in the last 6 networks like twitter and massive growth, customers months, almost everybody is Facebook to control are interacting before, during interconnected – the social identity management and after a purchase – in layer is built (login) and real-time. communication This is creating a wealth of interactions for any brand that wants to listen
Increasingly interactions are becoming moreimportant than the transaction Post- Awareness purchase Interactions Purchase Research Pre-purchase
Gaming has learnt to introduce and managecomplexity whilst keeping people engaged High Challenge Level Low Skill Level High
What is a game? “A game is a system in which players engage in an artificial conflict, defined by rules, that result in a quantifiable outcome” • Rules of Play: Game Design Fundamentals (Salen & Zimmerman) 2004
Game design principles can be used toimprove & enhance everyday interactions GAME GAME GAME STRUCTURE ENGAGEMENT RECOGNITION Using the basic structure of Understanding what Leaning from game game design to add keeps people playing and reward, recognition and additional depth and engaged across all levels motivation mechanics to engagement to the of ability improve the overall interaction interaction This is Gamification
Gamification is not about creatingstandalone games Played almost 8,000 times and broken all previous participation records for a study of this nature… …however this is not Gamification, it’s a game.
Gamification is about adding gaming designmechanics to every day activities Creates the rules Quantifiable outcome The system
The game loopDefined as:-• The chain of actions you do over and over again Buy Plot Collect Buy & Place Income Item Wait for Income http://www.slideshare.net/wooga/killer-game-loops-in-social-games
Loyalty has similar characteristics [Loyalty is] an integrated system of marketing actions that aims to make member customers more loyal (Share and Sharp 1997)
The loyalty game loop Share of Tenure Advocacy Spend Purchase Join Item Redeem Listen & Earn Points Learn Points Collect Points 1 5
The loyalty game loop needs to incorporatemore than the basic transaction Share of Tenure Advocacy Spend Purchase Join Item Check-in Product Review Redeem Listen & Earn Points Learn Points Price Comparison Social Share Collect Points Use of an Web Login Offer Tweet 1 Mention 6
The game loop – Smart Depth Adding1. Consistency - Add a new layer on the additional existing game loop, not create a new one layers2. Discovery - Novice players should not Buy Plot need to care about it until they figure it out on their own3. Depth - Strategic thinking with variable solutions and outcomes is best Collect Buy & Place4. Achievement - Players should be able to Income Item stumble on it and feel smart for achieving it5. Extensibility - After doing it once and Wait for gaining rewards, players are able to Income repeat to get a better solution http://www.slideshare.net/wooga/killer-game-loops-in-social-games
Keeping users engaged - Game flow High Anxiety“The state in which people are so involved Challenge Level in an activity that nothing else seems to matter; the experience itself is so enjoyable that people will do it even atgreat cost, for the sheer sake of doing it” Boredom Low Low Skill Level High
Rules of flow1. Direction - Activity with a clear set of goals which adds direction and High structure to the task2. Achievable - Good balance between Anxiety the perceived challenges of the task at hand and his or her own perceived Challenge Level skills. Hardcore Gamer3. Feedback - Clear and immediate feedback helps the person negotiate any changing demands / adjust to Casual maintain the flow state Gamer Boredom Ultimate goal is to keep every player Newbie Low involved and engaged, whatever their Low Skill Level High ability
Loyalty flow• Loyalty programmes also need to be designed around flow High• Challenge level can be directly attributed to ongoing engagement Anxiety• Tiers can be used to create levels that people chase to attain – increasing the Challenge Level Gold challenge in line with ability Customers top out• Have to be careful tiering doesn’t “top Silver out” – schemes see drop in activity once top tier reached• Need to consider feedback and how Bronze Boredom this can play a pivotal role in engagement/flow Low Low Skill/Ability Level High
Loyalty flow - Tiers vs levels• Tiers in loyalty are very similar to levels used within social gaming• Gaming levels do present additional opportunities however:-• Early days engagement – Users are pushed through lower levels quickly to help “lock in” the behaviour• Social Currency – Levels are published to friends to create an element of competition and achievement• Incremental Achievement – More levels provide granular behaviour recognition and prevent “topping out” so quickly• Signposting – Different activities can help you “level up” more quickly
Engagement through meaningful play “Meaningful play occurs when the relationships between actions and outcomes in a game are bothdiscernable and integrated into the larger context of the game” Rules of Play: Game Design Fundamentals (Salen & Zimmerman) 2004
Creating meaningful play• Discernable –Allow players to understand that an action has a reaction – “If I shoot the asteroid it blows up” – “If I swipe my card, recommend a friend or take up an offer this is recognised –The closer recognition is to action the better the game play• Integrated –Recognition is not only immediate, but also plays larger part of overall game – “Shooting lots of asteroids gains points which go toward higher level – higher tiers provide bigger guns” –Within a loyalty programme, my actions combine progress towards a tier and/or reward – High tiers provide faster earning / increased reward selection
80m people a week can’t be wrong…Social gaming has come ofage utilising:-• Appointment dynamics to encourage return• Social currency through levels• Dual currencies to both reward and recognise
Balancing recognition and reward Dual Currency Example - Delta MQM reward currency earned from flights & partners MQS benefits currency earned fromBoth currencies can flights onlybe used to achieve Only the milesstatus and benefits currency can be used for rewards
Loyalty programmes are games GAME GAME GAME STRUCTURE ENGAGEMENT RECOGNITION Using the basic structure of Understanding what Leaning from game game design to add keeps people playing and reward, recognition and additional depth and engaged across all levels motivation mechanics to engagement to the of ability improve the overall interaction interaction Now we need to make the game play better
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