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THE NEW LOYALTY
Modern. Social. Engaged.
Scott Schnaars, GM - EMEA, Badgeville
LOYALTY DISRUPTION
It’s harder than ever to retain customers…

MORE !
CHOICE!

LIMITED!
TIME!

EMPOWERED !
CUSTOMERS!

More channels than ever
before to engage 
	
  

Average customer attention
span of 8 seconds



More “madvocates” 
than advocates
MASSIVE INVESTMENTS

In marketing technology & programs to support
customer experience and loyalty…
On Loyalty 
Programs

$50B	
  

$1.5B	
  	
  In Online 
Communities

$26B	
  In SEM

80%	
  

Budget allocation
on rewards

$4.8B	
  	
  

In
$25B	
  	
   Marketing 
Software

In Social Media 
Ad Spend

Sources: McKinsey, Gartner, IDC, 6S Marketing, BIA/Kelsey
DESPITE BIG INVESTMENT….
We’re knee deep in an engagement crisis
Low Adoption

16%

Customers Who See
Facebook Brand Updates

28%
 Visitors Actually Login

Few Converting

3%

Average Online 
Conversion Rates

65%
 Abandon Shopping Carts

Limited Loyalty

25%

Customers Swayed
by a Brand

55%

Customers Inactive in
Loyalty Programs

Sources: Gartner, FMC, Forrester, Colloquy, Statista
THE HEART OF THE PROBLEM…
We’re caught in a rut of rewarding value
based on one primary behavior…

Did They Purchase?!
THE OPPORTUNITY
Embrace expansive set of new behaviors
New Behaviors

Traditional Behaviors 

$	
   Purchase 

Pin

Like

Vote
Log In

Phone call

Share on 
Facebook
Add to Cart

Write e-mail

Register

Invite 
Friends

Write Blog

Fill Out
Profile

Respond to
a Review

?

+
Register a
Product

Ask a 
Question
Share

Online
Support Chat

Tweet

Post

File Support
Request

+
Trial 
Product

Write a
Review

Follow a Friend 
Or Peer

Comment
THE OPPORTUNITY
And the new rewards that go along with them…
Traditional Rewards
(Tangible)

Free products
Punchcards
Discounts

New Rewards 
(Virtual)
BOOST REPUTATION AND STATUS






EARLY ACCESS & PRIVILEGES
	
  
MODERNIZED LOYALTY STRATEGY
Low-cost, virtual rewards can exceed the value 
of tangible when in the right context…
Virtual Rewards
Perceived	
  Value	
  of	
  Reward	
  

•  Elevated reputation & status 
•  Early access & privileges 
•  Championed expertise

Tangible Rewards
•  Free products
•  Loyalty Cards
•  Discounts

Socialness	
  of	
  Customer	
  Experience	
  
GAMIFICATION: YOUR SECRET WEAPON 
FOR SOCIAL LOYALTY
Influence expanded set of behaviors for expanded set of rewards

Purchase

Comment

REVENUE"

NET EFFECT


Share

Drive engagement
that grows revenue

Vote
Like

Login
Read

Low

Medium
ENGAGEMENT"

High
GAME MECHANICS

Reward your customers, for behaviors big and small…
Examples	
  

Give Instant Feedback

Points can reinforce valuable
behaviors

Show Recognition 
Achievements incentivize engagement

Guide Customers

Missions help them interact
with products & content
REPUTATION MECHANICS
Showcase customer rank and status
Examples	
  

Champion Loyal Brand Advocates 

With contextual Leaderboards 

Showcase Mastery or Status

With different Levels in customer
community

Highlight Expertise

In specific areas with Tracks
SOCIAL MECHANICS
Connect customers with relevant
products and content
Examples	
  

Highlight Activities
Discover relevant content and how
people interact with it

Follow People & Content

Connect with 
like-minded customers or key
products

Real-time Notifications

Deliver alerts as they happen 
across site or app
BEHAVIOR DATA

Made actionable

	
  

Generate real-time
offers on your website






Trigger campaigns in

your ESP or Marketing

Automation tool 








Create tasks for sales
& services in your CRM
THE REAL OPPORTUNITY

Behavior data to gain bigger, better 

understanding of your customer…

Customer Performs
Behavior

Apply to Customer
Experience

Analyze Behavior Data
YOUR 
CUSTOMER	
  

Enhance Engagement 

Closed Loop System of Engagement
MUCH MUSIC’S

CHALLENGE

Keep users engaged between live events and programs

Business Objectives!
•  Increase customer retention"
•  Grow User Generated Content"
•  Drive engagement to make
customers more attractive to
advertisers "

CASE
STUDY
ENGAGEMENT
DRIVES RESULTS

CASE
STUDY

Maximize customer revenue with more engaged audience…

%
 40%
I’ll insert stat
Daily
Retention

590%
Social
Shares

18%

Conversions
SAMSUNG’S
 ’ S
SAMSUNG
CHALLENGE
 E & existing product owners
CHALLENG
Gain a deeper connection with new
How to harness
customers online?

More user
generated content?

Social sharing
Kendall S U N G ’ S– Raise a Glass
Jackson
SAM
Mobile L L E N G E
C H A Connections
Kendall Jackson – Raise a Glass
Mobile Connections
	
  
Goals	
  
Value:	
  	
  
•  Increase	
  product	
  awareness	
  
•  First	
  to	
  market	
  in	
  wine	
  industry	
  with	
  
mobile	
  community	
  powered	
  by	
  
•  Develop	
  high-­‐quality	
  user	
  
gamificaPon	
  
generated	
  content	
  
•  Previously	
  un-­‐tapped	
  ability	
  to	
  connect	
  	
   •  Build	
  community	
  	
  
with	
  K-­‐J	
  fans	
  
•  Increase	
  online	
  store	
  sales	
  
•  Commerce,	
  Community,	
  Altruism	
  
	
  
	
  
	
  
ENGAGEMENT
DRIVES REVENUE
 product owners
Gain a deeper connection with new & existing
10X MORE

SUBMIT
ANSWERS

47%

16%

ANONYMOUS
TO
REGISTERED
USERS

TIME ON
SITE

PEOPLE

5X MORE

COMMENTS

6X MORE

SHOP
CLICKS

2X MORE

REVIEWS

ENGAGEMENT

CONVERSION
WHY BADGEVILLE

Manage engagement across all touchpoints….
MARKETING/
ANALYTICS 

SOCIAL WEB

WEBSITES & 
MOBILE APPS

COMMUNITIES

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  

CRM

SOCIAL
COLLABORATION

LMS/HR

CMS

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  

	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  
How	
  can	
  we	
  sell	
  	
  
gamificaPon	
  internally?	
  
1.	
  AVOID	
  THE	
  G-­‐WORD	
  
Avoid	
  gamificaPon	
  in	
  front	
  of	
  the	
  wrong	
  audiences…	
  

It’s about 
behavior management and
business results
EXAMPLE:	
  EMC	
  

RAMP:	
  RecogniPon,	
  Awards	
  and	
  MoPvaPon	
  Program	
  
2.	
  IT’S	
  ABOUT	
  BEHAVIORS	
  

That	
  we	
  can	
  moPvate	
  and	
  influence	
  to	
  drive	
  engagement	
  

$	
  
Edit 
Wiki

Finish
Certification

Check in
Document

Open
Support
Ticket

Approve
Expenses

Close 
a Deal

Write 
Review

File
Support
Ticket

Log In

Close
Support
Ticket

Open
Opportunity

Share

Post
Status
Message

Comment

Update 
Record
Check out
Document

Create 
Lead

$	
  
Submit
Expense
Report

Reply to
Discussion

Convert 
Lead

Begin
Certification
3.	
  IT’S	
  MORE	
  THAN	
  POINTS,	
  BADGES	
  
AND	
  LEADERBOARDS	
  
Tapping	
  into	
  the	
  human	
  psyche	
  
make
progress 
I
how 
know pare
com

I want to…

get
recogniz
for my w ed
ork

WIN!
4.	
  IT’S	
  ABOUT	
  HARD	
  BUSINESS	
  VALUE	
  
Tie	
  back	
  to	
  the	
  ROI	
  of	
  the	
  app	
  in	
  quesPon…	
  
200%
More
Reviews

20%
Faster
Ticket
Response

63% of customers are 
more likely to purchase products 
after reading a review

Resolving tickets on the same day
reduces cost of services by 66%

Sources: iPerceptions and UK Customer Satisfaction Index
5.	
  IT’S	
  AN	
  ENTERPRISE	
  INVESTMENT	
  
GamificaPon	
  must	
  delight	
  end	
  users,	
  but	
  saPsfy	
  requirements	
  
FULL SUITE OF 
ENGAGEMENT MECHANICS

REQUIRED	
  

Game	
  Mechanics	
  

✔	
  

Portable	
  ReputaQon	
  Mechanics	
  

✔	
  

Social	
  Mechanics	
  

✔	
  

Social	
  Rewards	
  

✔	
  

HARDENED SECURITY

REQUIRED	
  

Private	
  Cloud	
  &	
  Database	
  

✔	
  

Global	
  Data	
  Center	
  

✔	
  

MulQ-­‐Qered	
  user	
  access	
  	
  

✔	
  

ENTERPRISE SCALE

REQUIRED	
  

Enterprise	
  Networks	
  &	
  Sites	
  

✔	
  

Advanced	
  Metadata	
  Support	
  

✔	
  

Private	
  Customer	
  Community	
  	
  

✔	
  
THANK YOU! 
Scott Schnaars
Badgeville, GM - EMEA
Twitter: @schnaars

www.badgeville.com

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Business Gamification: case studies

  • 1. THE NEW LOYALTY Modern. Social. Engaged. Scott Schnaars, GM - EMEA, Badgeville
  • 2. LOYALTY DISRUPTION It’s harder than ever to retain customers… MORE ! CHOICE! LIMITED! TIME! EMPOWERED ! CUSTOMERS! More channels than ever before to engage   Average customer attention span of 8 seconds More “madvocates” than advocates
  • 3. MASSIVE INVESTMENTS In marketing technology & programs to support customer experience and loyalty… On Loyalty Programs $50B   $1.5B    In Online Communities $26B  In SEM 80%   Budget allocation on rewards $4.8B     In $25B     Marketing Software In Social Media Ad Spend Sources: McKinsey, Gartner, IDC, 6S Marketing, BIA/Kelsey
  • 4. DESPITE BIG INVESTMENT…. We’re knee deep in an engagement crisis Low Adoption 16% Customers Who See Facebook Brand Updates 28% Visitors Actually Login Few Converting 3% Average Online Conversion Rates 65% Abandon Shopping Carts Limited Loyalty 25% Customers Swayed by a Brand 55% Customers Inactive in Loyalty Programs Sources: Gartner, FMC, Forrester, Colloquy, Statista
  • 5. THE HEART OF THE PROBLEM… We’re caught in a rut of rewarding value based on one primary behavior… Did They Purchase?!
  • 6. THE OPPORTUNITY Embrace expansive set of new behaviors New Behaviors Traditional Behaviors $   Purchase Pin Like Vote Log In Phone call Share on Facebook Add to Cart Write e-mail Register Invite Friends Write Blog Fill Out Profile Respond to a Review ? + Register a Product Ask a Question Share Online Support Chat Tweet Post File Support Request + Trial Product Write a Review Follow a Friend Or Peer Comment
  • 7. THE OPPORTUNITY And the new rewards that go along with them… Traditional Rewards (Tangible) Free products Punchcards Discounts New Rewards (Virtual) BOOST REPUTATION AND STATUS EARLY ACCESS & PRIVILEGES  
  • 8. MODERNIZED LOYALTY STRATEGY Low-cost, virtual rewards can exceed the value of tangible when in the right context… Virtual Rewards Perceived  Value  of  Reward   •  Elevated reputation & status •  Early access & privileges •  Championed expertise Tangible Rewards •  Free products •  Loyalty Cards •  Discounts Socialness  of  Customer  Experience  
  • 9. GAMIFICATION: YOUR SECRET WEAPON FOR SOCIAL LOYALTY Influence expanded set of behaviors for expanded set of rewards Purchase Comment REVENUE" NET EFFECT Share Drive engagement that grows revenue Vote Like Login Read Low Medium ENGAGEMENT" High
  • 10. GAME MECHANICS Reward your customers, for behaviors big and small… Examples   Give Instant Feedback
 Points can reinforce valuable behaviors Show Recognition Achievements incentivize engagement Guide Customers
 Missions help them interact with products & content
  • 11. REPUTATION MECHANICS Showcase customer rank and status Examples   Champion Loyal Brand Advocates 
 With contextual Leaderboards Showcase Mastery or Status
 With different Levels in customer community Highlight Expertise
 In specific areas with Tracks
  • 12. SOCIAL MECHANICS Connect customers with relevant products and content Examples   Highlight Activities Discover relevant content and how people interact with it Follow People & Content
 Connect with like-minded customers or key products Real-time Notifications
 Deliver alerts as they happen across site or app
  • 13. BEHAVIOR DATA Made actionable   Generate real-time offers on your website Trigger campaigns in your ESP or Marketing Automation tool 
 
 Create tasks for sales & services in your CRM
  • 14. THE REAL OPPORTUNITY Behavior data to gain bigger, better 
 understanding of your customer… Customer Performs Behavior Apply to Customer Experience Analyze Behavior Data YOUR CUSTOMER   Enhance Engagement Closed Loop System of Engagement
  • 15. MUCH MUSIC’S CHALLENGE Keep users engaged between live events and programs Business Objectives! •  Increase customer retention" •  Grow User Generated Content" •  Drive engagement to make customers more attractive to advertisers " CASE STUDY
  • 16. ENGAGEMENT DRIVES RESULTS CASE STUDY Maximize customer revenue with more engaged audience… % 40% I’ll insert stat Daily Retention 590% Social Shares 18% Conversions
  • 17. SAMSUNG’S ’ S SAMSUNG CHALLENGE E & existing product owners CHALLENG Gain a deeper connection with new How to harness customers online? More user generated content? Social sharing
  • 18. Kendall S U N G ’ S– Raise a Glass Jackson SAM Mobile L L E N G E C H A Connections
  • 19. Kendall Jackson – Raise a Glass Mobile Connections   Goals   Value:     •  Increase  product  awareness   •  First  to  market  in  wine  industry  with   mobile  community  powered  by   •  Develop  high-­‐quality  user   gamificaPon   generated  content   •  Previously  un-­‐tapped  ability  to  connect     •  Build  community     with  K-­‐J  fans   •  Increase  online  store  sales   •  Commerce,  Community,  Altruism        
  • 20. ENGAGEMENT DRIVES REVENUE product owners Gain a deeper connection with new & existing 10X MORE SUBMIT ANSWERS 47% 16% ANONYMOUS TO REGISTERED USERS TIME ON SITE PEOPLE 5X MORE COMMENTS 6X MORE SHOP CLICKS 2X MORE REVIEWS ENGAGEMENT CONVERSION
  • 21. WHY BADGEVILLE Manage engagement across all touchpoints…. MARKETING/ ANALYTICS SOCIAL WEB WEBSITES & MOBILE APPS COMMUNITIES                                                                                             CRM SOCIAL COLLABORATION LMS/HR CMS                                                                                              
  • 22. How  can  we  sell     gamificaPon  internally?  
  • 23. 1.  AVOID  THE  G-­‐WORD   Avoid  gamificaPon  in  front  of  the  wrong  audiences…   It’s about behavior management and business results
  • 24. EXAMPLE:  EMC   RAMP:  RecogniPon,  Awards  and  MoPvaPon  Program  
  • 25. 2.  IT’S  ABOUT  BEHAVIORS   That  we  can  moPvate  and  influence  to  drive  engagement   $   Edit Wiki Finish Certification Check in Document Open Support Ticket Approve Expenses Close a Deal Write Review File Support Ticket Log In Close Support Ticket Open Opportunity Share Post Status Message Comment Update Record Check out Document Create Lead $   Submit Expense Report Reply to Discussion Convert Lead Begin Certification
  • 26. 3.  IT’S  MORE  THAN  POINTS,  BADGES   AND  LEADERBOARDS   Tapping  into  the  human  psyche   make progress I how know pare com I want to… get recogniz for my w ed ork WIN!
  • 27. 4.  IT’S  ABOUT  HARD  BUSINESS  VALUE   Tie  back  to  the  ROI  of  the  app  in  quesPon…   200% More Reviews 20% Faster Ticket Response 63% of customers are more likely to purchase products after reading a review Resolving tickets on the same day reduces cost of services by 66% Sources: iPerceptions and UK Customer Satisfaction Index
  • 28. 5.  IT’S  AN  ENTERPRISE  INVESTMENT   GamificaPon  must  delight  end  users,  but  saPsfy  requirements   FULL SUITE OF ENGAGEMENT MECHANICS REQUIRED   Game  Mechanics   ✔   Portable  ReputaQon  Mechanics   ✔   Social  Mechanics   ✔   Social  Rewards   ✔   HARDENED SECURITY REQUIRED   Private  Cloud  &  Database   ✔   Global  Data  Center   ✔   MulQ-­‐Qered  user  access     ✔   ENTERPRISE SCALE REQUIRED   Enterprise  Networks  &  Sites   ✔   Advanced  Metadata  Support   ✔   Private  Customer  Community     ✔  
  • 29. THANK YOU! Scott Schnaars Badgeville, GM - EMEA Twitter: @schnaars www.badgeville.com