The Loyalty Game


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How Gamification is Transforming Customer Loyalty

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The Loyalty Game

  1. 1. The Loyalty Game<br />How gamification is transforming customer loyalty<br />Presented by Colin Cardwell<br />
  2. 2. WELCOME<br />Who are we? <br />What is Gamification?<br />Why now?<br />The game designers toolkit<br />Gamification in action<br />Q&A<br />Your next steps<br />
  3. 3. Who are we?<br />
  4. 4. WHO ARE WE?<br />Established in 2002<br />We are a team of 20 technology creatives working out of our North Sydney studio<br />We are creators of Apps with over 200 projects under our belt.<br />We work on web, mobile, desktop and social platforms<br />
  5. 5. HOUSE PROJECTS<br />We are the publisher of Fizzy.comwhich has over 750,000 members<br />We are the publisher of games like Swords and Sandals. Our games are played more than 20 million times every month<br />
  6. 6. CUT-THROUGH CONNECTION ACTION<br />There are over 1000 Apps published every day - how do you get noticed above the noise and CUT-THROUGH?<br />There are now HUNDREDS of technology platforms to choose from – how do you choose the right technologies to make your CONNECTION?<br />Your Apps have to work for your business, get a return - how do you drive your customers to ACTION?<br />
  7. 7. WHAT WE DO<br />We use Intelligence, Technology and Creativity to develop Apps which CUT-THROUGH the noise, CONNECTwith your customers and drive the ACTIONS you want<br />
  8. 8. WHO WE WORK WITH<br />
  9. 9. Take a look at our Showreel on YouTube<br />
  10. 10. What is Gamification?<br />
  11. 11. Gamification is…<br />…when game design and development mechanics and methodologies are used to encourage changes in behaviour or to motivate people to complete specific actions <br />
  12. 12. Or Gamification is…<br />Making non-game activities<br />more game-like<br />
  13. 13. Why do we<br />need it?<br />
  14. 14.
  15. 15. BROAD RANGE OF APPLICATIONS<br />Education, to motivate learners<br />Motivate and reward staff<br />Change in behaviour at a society level<br />Increase customer loyalty and therefore increase sales and profits<br />
  16. 16. Why now?<br />
  17. 17. CHANGES IN CONSUMER BEHAVIOUR<br />Economy is reducing confidence<br />Tending to save more and spend less<br />Tending to buy during ‘sales’<br />Growth in buying online, offshore<br />Growth in purchase through ‘Daily Deal’ sites and services<br />More propensity to shop around<br />
  18. 18. Ad News, April 2011<br />
  19. 19. THE BUSINESS RESPONSE<br />More sales to tempt the consumer<br />Reliance on ‘Daily Deal’ type promotions<br />Increased customer acquisition costs<br />Increased customer retention costs<br />Reduction in profit margins<br />
  20. 20.
  21. 21. Meanwhile…<br />…there has been revolution in the games industry<br />
  22. 22. Before the revolution we knew where we stood…<br />Gamers were young adult males who were anti-social, ate Pizza, drank Coke by the BIG bottle and had no life. Or maybe…<br />
  23. 23. Kids!<br />And then this happened…<br />
  24. 24.
  25. 25. NOW<br />EVERYBODY<br />IS<br />PLAYING<br />
  26. 26. SOME NUMBERS<br />Over 300 new games are uploaded to iTunes every day<br />20 million Facebook Apps are installed by users every day, games are by far the most popular<br />More than half of Facebook active users play Facebook games at least once per week<br />An average Facebook user creates 90 pieces of content each month<br />There are over 250 million people playing Zynga games each month<br />Zynga has been valued at as much $10 billion, around twice as much as Electronic Arts, previously the biggest games company in the world.<br />
  27. 27. WHY MIGHT GAMIFICATION WORK?<br />Play is for everyone, not just for kids and young adult males<br />In most situations, fun is better than not fun<br />The value in a reward can be much greater than the value of the reward itself<br />People are social and what their friends/family think matters to them<br />Often enough, the difference between choosing one action/product over another can be tiny<br />
  28. 28. The Game Designers Tool Box<br />
  29. 29. THE TOOLS<br />Points<br />Leader boards<br />Cash (VC)<br />Things to buy (VI)<br />Economies (VE)<br />Levels and Progression<br />Badges and Trophies<br />Social Media Integration<br />Fun<br />Process<br />Version 2<br />
  30. 30. Points<br />
  31. 31. If you stop here then it’s just POINTIFICATION<br />
  32. 32. Leader boards<br />
  33. 33. Virtual Cash<br />
  34. 34. Virtual Shops<br />
  35. 35. VIRTUAL ECONOMY<br />Points become Currency<br />They have more value because they can be traded and spent<br />Virtual Items are far less expensive than real items, but can still motivate<br />Virtual Items can be active as well as passive<br />
  36. 36. Paying for actions with a VC<br />
  37. 37. FLEXIBILITY OF A VC<br />
  38. 38. LEVELS AND PROGRESSION<br />Can be about the game<br />Or about the player<br />Defines the players journey<br />Typically, players enjoy increasingly challenging levels<br />But it is much more complex than that<br />For a medium to large game, more time is spent on balancing level progression than anything else<br />There are 133 books on Amazon on the subject of game level design<br />
  39. 39.
  40. 40. GAMIFICATION LEVELS<br />Should reflect the journey you want your customers to take<br />Progression should be achievable, especially in the early levels, this is not a battle!<br />Can be complex if well explained, multiple journeys<br />Should accommodate the breadth of your customer base<br />Should be never ending!<br />
  41. 41. BADGES AND TROPHIES<br />Makes a game ‘Juicy’<br />Plenty of Positive Feedback,‘Hey you’re good!’<br />Can drive specific behaviours<br />Increases a players status<br />Something to share<br />
  42. 42. CONGRATULATIONS!<br />You’ve just won an award!<br />You have just won the BronzePaying Attention Trophy for <br />paying attention during this presentation<br />Well Done You!<br />Keep paying attention to win the Silver Trophy <br />
  44. 44. CONSTANT NEAR GOAL COMPLETION<br />When a player completes the first goal from set A, they have almost completed the first goal from set B and so on<br />UNLOCK BONUS ITEMS<br />Goal Set A<br />(tiny goals)<br />Goal Set B<br />(small goals)<br />Goal Set C<br />(med goals)<br />Goal Set D<br />(big goals)<br />UNLOCK NEW AREAS<br />TROPHIES<br />LEVEL ADVANCEMENT<br />
  46. 46. SOCIAL MEDIA INTEGRATION<br />Sharing<br />Invites<br />Social Graph<br />Gifting<br />
  47. 47. GOOD FOR THE GAME<br />Promotes the game<br />Increases playing time<br />Keep players coming back<br />Drives sales of Virtual Currency<br />Enriches gameplay<br />
  48. 48. GOOD FOR THE PLAYER<br />Increase player status<br />Social currency – people talk about games these days<br />Deeper Engagement<br />Competition<br />Collaboration<br />
  49. 49. GAMIFICATION ANGLE<br />Promotes the BRAND<br />Increases BRAND ENGAGEMENT time<br />Keep CUSTOMERS coming back<br />Drives sales <br />Enriches the BRAND<br />And can automate social media relationships for the BRAND<br />
  50. 50. FUN<br />
  51. 51.
  52. 52. GAME DEVELOPMENT PROCESS<br />Plan<br />Design<br />Document<br />Prototype<br />Develop<br />Test<br />Review<br />Test<br />Review<br />Test <br />
  53. 53. GAMIFICATION DEVELOPMENT PROCESS<br />Plan<br />Design<br />Document<br />Prototype<br />Develop<br />Test<br />Review<br />Test<br />Review<br />Test <br />
  54. 54. VERSION 2 AND 3 AND MORE<br />Games have a life<br />You need to plan for version 2 early<br />Integrate player feedback<br />In itself a marketing opportunity<br />Version 2 should cost less than version 1<br />Increase the life of the franchise<br />
  55. 55. THE TOOLS<br />Points<br />Leader boards<br />Cash (VC)<br />Things to buy (VI)<br />Economies (VE)<br />Levels and Progression<br />Badges and Trophies<br />Social Media Integration<br />Fun<br />Process<br />Version 2<br />
  56. 56. Gamification in Action<br />
  57. 57. LINKED IN<br />
  58. 58. FOURSQUARE<br />
  59. 59. MINT<br />
  60. 60. STARBUCKS<br />
  61. 61. PERISHER MYRIDE<br />
  62. 62. Nike +<br />
  63. 63. ABC READING EGGS<br />
  64. 64. RSPCA<br />
  65. 65. CENTURY 21<br />
  66. 66. Q & A<br />
  67. 67. YOUR NEXT STEPS<br />NEW<br />PRODUCT<br />Plan<br />Design<br />Document<br />Prototype<br />Develop<br />Test<br />Review<br />Test<br />Review<br />Test <br />
  68. 68. GAMIFICATION STRATEGY PLAN<br />Business Analysis<br />Gamification System Design<br />Integration Plan<br />Marketing Strategy<br />Phased Roll-Out Plan<br />Fee: $10k<br />
  69. 69. The End<br />