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Gamification in Social Media
                                                              Cheskin Added Value
Stanford BUS 109 Marketing and Social Media Strategy          255 Shoreline Dr., Suite 350
               Date:          Authors:                        Redwood Shores, CA 94065
               October 2011                                   650-802-2100
                              Leigh.Marriner@cheskin-added-
                              value.com
What does Cheskin Added Value do?
We answer central marketing questions.


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© 2011 Cheskin Added Value                                                            1
We have a global perspective, with 22 offices in 14 countries




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                                        © 2011 Cheskin Added Value



© 2011 Cheskin Added Value                                                           2
We help leaders innovate


        1980s
         Apply Ethnography to Business




           1990s
           Leverage technology to better understand consumers




          2000s
          Designing brands that express meaningful experiences




© 2011 Cheskin Added Value                                       3
Gamification

                    The application of gaming
                    concepts and techniques to
                    non-game experiences, in order
                    to drive desired behaviors.
                                               Better
                                            engagement             Lift of target
                                                                    behaviors
            On-boarding

                                                                            Conversion
                             Increase re-
                                                      Virality
                             engagement
                                                  (broadcasting)
© 2011 Cheskin Added Value                                              4
The power of gamification

     You can incentivize any action you value
   Can help you better engage both enthusiastic
   and even passive audiences
     Delivers real business value




© 2011 Cheskin Added Value                        5
What is the key to success?

    Requires that you identify the behaviors or
   actions you want from participants, alongside
   their relative value
    Then identify engagement-based strategies
   (game mechanics) to engineer a path to your
   goal


                  Identify the behaviors you want to elicit – awareness,
             click-throughs, recommendations, purchases – then determine
                   motivators that can provoke each of those behaviors




© 2011 Cheskin Added Value                                    6
What are rewards?

   The best reward is the intrinsic satisfaction a
   user gets from participating – it’s not
   necessarily keeping score.
    Gamification is not just a rewards or loyalty
   system. Although these can, and typically do,
   form part of a gamification environment,
   they’re just pieces of the overall puzzle.
    Ideally it has so much “fun value” that the
   pure engagement qualities of playing can in
   itself be the reward.



© 2011 Cheskin Added Value                           7
“I never thought of it as a game”

 I never thought of it as a game. So                                          Facebook is not a game.
                                           A lot of times Foursquare will
     x
 it’s kind of weird when people say,
                                           have nice little coupons of
                                                                              My experience is not
                                                                              cheapened by 1 point for
 “Do you play FourSquare?” I
 thought of it as another application.     hey, if you are around here        writing on some friend’s
 I don’t play it to like win something     check this out or get $10.00       wall. That’s just overdoing
 and I don’t really care if I’m Mayor      off this bakery or stuff like      it. It’s been a social
 of anything. I can see where my           that. I actually kind of like      network for me and like the
 friends have been and stuff like          that. That’s actually kind of      way that they’ve employed
 that, but I don’t necessarily think of    cool.                              game mechanics, they’ve
 it as a competition.                                                         kept it that way and I
                                                                              appreciate that.




           I think tips are usually
           they’re funny, which is kind           I feel Foursquare’s figured out a balance, it’s not
           of cool, like I went to this           disgusting to me when they do game mechanics or
           café up in San Francisco               give me points which I can earn. If I check in the
           called Epicenter and one of            same place, they give me less points than my
           the tips was like ask the              checking into a new place. They use it in a more
           cashier what he can do with            clever way so that I go to new places, so I feel like
           a computer. And I was so               they’re doing me something, I’m getting benefits if I go
           intrigued and I really wanted          to new places because I get to get more points.
           to…                                    .
© 2011 Cheskin Added Value                                                      8
What are game mechanics?


                    Game mechanics are
                    essentially a marriage of tools
                    that measure and report
                    statistics. Those statistics are
                    used to represent progress and
                    justify rewards.



© 2011 Cheskin Added Value                     9
Game Mechanics
     What makes games so addicting?

         GAME PSYCHOLOGY1                                               GAME MECHANICS2                                                           RESULTS3


     1. It’s a pleasurable activity
                                                                         1      Competition

                                                                                                                                         Better instructions- you have a
     2. It's an activity that we feel                                    2       Achievements
                                                                                                                                         goal and it’s measurable
        that we can perform - a
        challenge that requires skill                                    3       Points
     3. Clear goals for our activity                                                                                                     Better feedback- anytime you
                                                                         4       Purposeful                                              do something the environment
     4. Constant feedback on our                                                                                                         responds
        progress                                                         5       Collecting
     5. Exercise control over our                                                                                                        Connects you to emotions-
        environment                                                      6       Shared
                                                                                                                                         “fiero” experience
     6. We become less self-                                             7       Social reciprocity
        absorbed
                                                                                                                                         Better community
                                                                         8       Feedback & Exchanges

                                                                         9       Customization

                                                                        10       Expressive


Source: 1) Gamasutra, The Psychology Behind Games, April 26, 2005 2) Beautiful Interfaces, Farmville’s 5 Psychological Hooks, 2009; Amy Jo Kim,
      © 2011 Cheskin Added Value                                                                                                            10
Shufflebrain; AppsLab, Why Gaming is the Future of Everything, November 5th, 2009 3) Jane McGonigal, UX Week Video,
Game mechanics are integral to social networking sites

          “Points or                          “Feedback &
          Follower Counts”   “Achievements”    Exchanges”        “Collecting”




© 2011 Cheskin Added Value                                  11
Instant reinforcing feedback loops
                                                                          Can incent people to do things
                                                                          they previously shunned; i.e.
                                                                          short-burst knowledge
                                                                          management within a company


                  Tweet count (“score”)


                             Tweet instantly visible
                             (“result”)


                                               Irregular feedback by other
                                               people responding/retweeting


                                                       @mentions tab is the
                                                       Behaviorist’s irregular reward schedule
                                                       mechanism. Pavlov figured out irregular
                                                       rewards worked best of all.


                                                                                 = self-reinforcing (“addictive”)

© 2011 Cheskin Added Value                                                                12
Metagames as a model for increasing engagement
     Real world reward systems drive engagement

                                                           Metagames layer a rewards system on an existing real
                                                           life activity.
                                                           Real life leveling systems can be applied to everything.
                                                                 School behavior charts
                                                                 Frequent Flyer Programs
                                                                 Contests/raffles
                                                                 Discounts for being a frequent shopper


                                                           Metagame design advances engagement.
                                                             Participating in a game and receiving real world
                                                             benefits like discounts or public recognition
                                                             increases engagement.
                                                                 Currently Foursquare is tapping into the reward
                                                                 mechanism by creating a platform where businesses
                                                                 can reward their customers.
                                                                 Rewards could include special graphics, titles, credits,
                                                                 social accolades, QR-coded coupons.

     © 2011 Cheskin Added Value                                                               13
Source: Amy Jo Kim, Shufflebrain; Metagames Presentation
Gaming mechanics are being applied to the newest
generation of social tools -1-

                                          Points for completing real
                                          world tasks
                                           Gambit Tasks: Gambit
                                           Payment’s online payment
                                           system makes the earning
                                           opportunities CrowdFlower
                                           brings to the online workforce
                                           available in virtual economies
                                           for the first time in the history
                                           of social games.




© 2011 Cheskin Added Value                                14
Gaming mechanics are being applied to the newest
generation of social tools -2-

                                            Solving real world situations -
                                            points, achievements,
                                            purposeful, shared:

                                            Urgent Evoke :The goal of the
                                            social network game is to help
                                            empower young people all
                                            over the world, and especially
                                            young people in Africa, to
                                            come up with creative
                                            solutions to our most urgent
                                            social problems.




© 2011 Cheskin Added Value                             15
Gaming mechanics are being applied to the newest
generation of social tools -3-
                                                   Answering questions:
                                                   points, achievements,
                                                   collecting, purposeful,
                                                   shared
                                                   StackOverflow: Technical
                                                   Q&A site with
                                                   crowdsourced moderation
                                                   and reputation system.
                                                   People are encouraged to
                                                   give best answers and
                                                   ask best questions with
                                                   points, badges, and tags




© 2011 Cheskin Added Value                           16
How have brands used gamification?


                                     Post % completed of
                                      surveys when log in




                                     Design own drink and
                                      share on iPhone for
                                      loyalty program points




                                     Buy high end products
                                      cheaply if get there fast
                                      enough




© 2011 Cheskin Added Value                             17
Game mechanics can be mis-used

   E.g. reward users with points for clicking
   around a site or remaining on a page to
   consumer content
             “The user will get hooked and consciously
            participate as soon as they recognise the value
            in it.”
             Why does the user care about these points?




© 2011 Cheskin Added Value                                18
Let’s design game mechanics for highway speed camera system
   In Finland, ticket charge based on income. Saw 3% decrease
   in speed. Fast car owners had money and didn’t care.
    Their solution:
            Took pictures of every car going by. Once a month one person
            who had gone under the speed limit won the lottery of all the
            penalties.
            30% decrease in speed
            Game was linked directly to the outcome desired.




© 2011 Cheskin Added Value                                                  19
Game mechanics in market research
   When respondents enjoyed the experience, researchers
   received 2-3 x as much feedback and participants took more
   time with their answers. They explored how game rules could
   turn questions into puzzles.1
            Instead of asking respondents how much they liked a brand, we
            asked them how happy they would be to wear a given brand on
            their T-shirt.
            Instead of asking where they liked to go on holiday, they were
            invited to imagine they had to publish a magazine offering holiday
            recommendations.
            Describe yourself yielded 2.4 words and 85% response. Describe
            yourself in exactly seven words yielded an average of 4.5 words
            and 98% response.
            When asked how much they liked a list of music acts, they got 83
            evaluated. When asked to imagine they owned their own radio
            station and decide which artists to play, the number of artists
            evaluated rose to 148.
            When asked to list favorite foods, on average listed 6. When told
            they had 2 minutes, it produced 35 items.
   (1) Engage Research and GMI, September 2011. 30 experiments with >5,000 people.
© 2011 Cheskin Added Value                                                           20
Game playing in market research
   Turning marketing surveys into games, based on stock market
   trading
            For getting consumer reactions to new product ideas
            Players buy and sell different product concepts
            Has been used for ski resorts, crossover vehicles, laptop bags,
            smartphones, mirroring results found through traditional research

                             Do Respondents Prefer Surveys or Stock Trading?




   Source: Professor Ely Dahan, UCLA Anderson School of Managaement
© 2011 Cheskin Added Value                                                     21
Game playing in market research
    Something even simpler than markets for predicting preference
            Individuals expectation of what others will prefer is a better
            predictor than their own preference




   Source: Professor Ely Dahan, UCLA Anderson School of Managaement
© 2011 Cheskin Added Value                                                   22
Design Principles
                                                               Use gaming to enhance real life activities.

                                                                   Measure behavior and report it

                                                                   Create achievement “badges” that can be collected and
                                                                   displayed: Create brag-able moments

                                                                       Don’t let the gaming mechanics get in the way

                                                                   Easy to share: quick, simple and reward those that share

                                                                   Easy to “play”: simple, low involvement, quick

                                                                   Easy to join: leverage existing social networks like Facebook
                                                                   /Twitter; game tries to make players invite more friends to join

                                                                   Game pacing: grant rewards over time; sandbox play,
                                                                   continuously add new things

                                                                   Make it mobile

                                                                   Make it fun!


Source: Amy Jo Kim, Shufflebrain; Metagames Presentation, The social behavior incentive (how your app can be as addictive as
     © 2011 Cheskin Added Value                                                                                                23
Facebook, Twitter, Foursquare) by Robert Scoble on January 23, 2010
Further reading




© 2011 Cheskin Added Value   24

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Gamification in Social Media Engagement

  • 1. Gamification in Social Media Cheskin Added Value Stanford BUS 109 Marketing and Social Media Strategy 255 Shoreline Dr., Suite 350 Date: Authors: Redwood Shores, CA 94065 October 2011 650-802-2100 Leigh.Marriner@cheskin-added- value.com
  • 2. What does Cheskin Added Value do? We answer central marketing questions. Market Innovation Positioning Brand Equity Communication Trends/Foresight OpFinder Brand Positioning Brand Navigator Concept Testing Cultural Insights Habits/Practices CharacterLab™ Brand Copy Testing Iconography Market Mapping Concept Testing Brand Character Tracking Brand Stretch Market Opps Ideation Cultural Traction Semiotic Audit Segmentation Fast Track Sustainability Portfolio Strategy © 2011 Cheskin Added Value 1
  • 3. We have a global perspective, with 22 offices in 14 countries Hong Kong Beijing Los Angeles Shanghai San Francisco London Mumbai Guangzhou New York Paris Seattle Barcelona Madrid Philippines Nuremberg Cape Town Singapore Milan Johannesburg Warsaw Sydney Moscow © 2011 Cheskin Added Value © 2011 Cheskin Added Value 2
  • 4. We help leaders innovate 1980s Apply Ethnography to Business 1990s Leverage technology to better understand consumers 2000s Designing brands that express meaningful experiences © 2011 Cheskin Added Value 3
  • 5. Gamification The application of gaming concepts and techniques to non-game experiences, in order to drive desired behaviors. Better engagement Lift of target behaviors On-boarding Conversion Increase re- Virality engagement (broadcasting) © 2011 Cheskin Added Value 4
  • 6. The power of gamification You can incentivize any action you value Can help you better engage both enthusiastic and even passive audiences Delivers real business value © 2011 Cheskin Added Value 5
  • 7. What is the key to success? Requires that you identify the behaviors or actions you want from participants, alongside their relative value Then identify engagement-based strategies (game mechanics) to engineer a path to your goal Identify the behaviors you want to elicit – awareness, click-throughs, recommendations, purchases – then determine motivators that can provoke each of those behaviors © 2011 Cheskin Added Value 6
  • 8. What are rewards? The best reward is the intrinsic satisfaction a user gets from participating – it’s not necessarily keeping score. Gamification is not just a rewards or loyalty system. Although these can, and typically do, form part of a gamification environment, they’re just pieces of the overall puzzle. Ideally it has so much “fun value” that the pure engagement qualities of playing can in itself be the reward. © 2011 Cheskin Added Value 7
  • 9. “I never thought of it as a game” I never thought of it as a game. So Facebook is not a game. A lot of times Foursquare will x it’s kind of weird when people say, have nice little coupons of My experience is not cheapened by 1 point for “Do you play FourSquare?” I thought of it as another application. hey, if you are around here writing on some friend’s I don’t play it to like win something check this out or get $10.00 wall. That’s just overdoing and I don’t really care if I’m Mayor off this bakery or stuff like it. It’s been a social of anything. I can see where my that. I actually kind of like network for me and like the friends have been and stuff like that. That’s actually kind of way that they’ve employed that, but I don’t necessarily think of cool. game mechanics, they’ve it as a competition. kept it that way and I appreciate that. I think tips are usually they’re funny, which is kind I feel Foursquare’s figured out a balance, it’s not of cool, like I went to this disgusting to me when they do game mechanics or café up in San Francisco give me points which I can earn. If I check in the called Epicenter and one of same place, they give me less points than my the tips was like ask the checking into a new place. They use it in a more cashier what he can do with clever way so that I go to new places, so I feel like a computer. And I was so they’re doing me something, I’m getting benefits if I go intrigued and I really wanted to new places because I get to get more points. to… . © 2011 Cheskin Added Value 8
  • 10. What are game mechanics? Game mechanics are essentially a marriage of tools that measure and report statistics. Those statistics are used to represent progress and justify rewards. © 2011 Cheskin Added Value 9
  • 11. Game Mechanics What makes games so addicting? GAME PSYCHOLOGY1 GAME MECHANICS2 RESULTS3 1. It’s a pleasurable activity 1 Competition Better instructions- you have a 2. It's an activity that we feel 2 Achievements goal and it’s measurable that we can perform - a challenge that requires skill 3 Points 3. Clear goals for our activity Better feedback- anytime you 4 Purposeful do something the environment 4. Constant feedback on our responds progress 5 Collecting 5. Exercise control over our Connects you to emotions- environment 6 Shared “fiero” experience 6. We become less self- 7 Social reciprocity absorbed Better community 8 Feedback & Exchanges 9 Customization 10 Expressive Source: 1) Gamasutra, The Psychology Behind Games, April 26, 2005 2) Beautiful Interfaces, Farmville’s 5 Psychological Hooks, 2009; Amy Jo Kim, © 2011 Cheskin Added Value 10 Shufflebrain; AppsLab, Why Gaming is the Future of Everything, November 5th, 2009 3) Jane McGonigal, UX Week Video,
  • 12. Game mechanics are integral to social networking sites “Points or “Feedback & Follower Counts” “Achievements” Exchanges” “Collecting” © 2011 Cheskin Added Value 11
  • 13. Instant reinforcing feedback loops Can incent people to do things they previously shunned; i.e. short-burst knowledge management within a company Tweet count (“score”) Tweet instantly visible (“result”) Irregular feedback by other people responding/retweeting @mentions tab is the Behaviorist’s irregular reward schedule mechanism. Pavlov figured out irregular rewards worked best of all. = self-reinforcing (“addictive”) © 2011 Cheskin Added Value 12
  • 14. Metagames as a model for increasing engagement Real world reward systems drive engagement Metagames layer a rewards system on an existing real life activity. Real life leveling systems can be applied to everything. School behavior charts Frequent Flyer Programs Contests/raffles Discounts for being a frequent shopper Metagame design advances engagement. Participating in a game and receiving real world benefits like discounts or public recognition increases engagement. Currently Foursquare is tapping into the reward mechanism by creating a platform where businesses can reward their customers. Rewards could include special graphics, titles, credits, social accolades, QR-coded coupons. © 2011 Cheskin Added Value 13 Source: Amy Jo Kim, Shufflebrain; Metagames Presentation
  • 15. Gaming mechanics are being applied to the newest generation of social tools -1- Points for completing real world tasks Gambit Tasks: Gambit Payment’s online payment system makes the earning opportunities CrowdFlower brings to the online workforce available in virtual economies for the first time in the history of social games. © 2011 Cheskin Added Value 14
  • 16. Gaming mechanics are being applied to the newest generation of social tools -2- Solving real world situations - points, achievements, purposeful, shared: Urgent Evoke :The goal of the social network game is to help empower young people all over the world, and especially young people in Africa, to come up with creative solutions to our most urgent social problems. © 2011 Cheskin Added Value 15
  • 17. Gaming mechanics are being applied to the newest generation of social tools -3- Answering questions: points, achievements, collecting, purposeful, shared StackOverflow: Technical Q&A site with crowdsourced moderation and reputation system. People are encouraged to give best answers and ask best questions with points, badges, and tags © 2011 Cheskin Added Value 16
  • 18. How have brands used gamification? Post % completed of surveys when log in Design own drink and share on iPhone for loyalty program points Buy high end products cheaply if get there fast enough © 2011 Cheskin Added Value 17
  • 19. Game mechanics can be mis-used E.g. reward users with points for clicking around a site or remaining on a page to consumer content “The user will get hooked and consciously participate as soon as they recognise the value in it.” Why does the user care about these points? © 2011 Cheskin Added Value 18
  • 20. Let’s design game mechanics for highway speed camera system In Finland, ticket charge based on income. Saw 3% decrease in speed. Fast car owners had money and didn’t care. Their solution: Took pictures of every car going by. Once a month one person who had gone under the speed limit won the lottery of all the penalties. 30% decrease in speed Game was linked directly to the outcome desired. © 2011 Cheskin Added Value 19
  • 21. Game mechanics in market research When respondents enjoyed the experience, researchers received 2-3 x as much feedback and participants took more time with their answers. They explored how game rules could turn questions into puzzles.1 Instead of asking respondents how much they liked a brand, we asked them how happy they would be to wear a given brand on their T-shirt. Instead of asking where they liked to go on holiday, they were invited to imagine they had to publish a magazine offering holiday recommendations. Describe yourself yielded 2.4 words and 85% response. Describe yourself in exactly seven words yielded an average of 4.5 words and 98% response. When asked how much they liked a list of music acts, they got 83 evaluated. When asked to imagine they owned their own radio station and decide which artists to play, the number of artists evaluated rose to 148. When asked to list favorite foods, on average listed 6. When told they had 2 minutes, it produced 35 items. (1) Engage Research and GMI, September 2011. 30 experiments with >5,000 people. © 2011 Cheskin Added Value 20
  • 22. Game playing in market research Turning marketing surveys into games, based on stock market trading For getting consumer reactions to new product ideas Players buy and sell different product concepts Has been used for ski resorts, crossover vehicles, laptop bags, smartphones, mirroring results found through traditional research Do Respondents Prefer Surveys or Stock Trading? Source: Professor Ely Dahan, UCLA Anderson School of Managaement © 2011 Cheskin Added Value 21
  • 23. Game playing in market research Something even simpler than markets for predicting preference Individuals expectation of what others will prefer is a better predictor than their own preference Source: Professor Ely Dahan, UCLA Anderson School of Managaement © 2011 Cheskin Added Value 22
  • 24. Design Principles Use gaming to enhance real life activities. Measure behavior and report it Create achievement “badges” that can be collected and displayed: Create brag-able moments Don’t let the gaming mechanics get in the way Easy to share: quick, simple and reward those that share Easy to “play”: simple, low involvement, quick Easy to join: leverage existing social networks like Facebook /Twitter; game tries to make players invite more friends to join Game pacing: grant rewards over time; sandbox play, continuously add new things Make it mobile Make it fun! Source: Amy Jo Kim, Shufflebrain; Metagames Presentation, The social behavior incentive (how your app can be as addictive as © 2011 Cheskin Added Value 23 Facebook, Twitter, Foursquare) by Robert Scoble on January 23, 2010
  • 25. Further reading © 2011 Cheskin Added Value 24