How to calculate return on investment (ROI) and set key performance indicators (KPIs) for an enterprise gamification project - in sales, customer service, knowledge collaboration, training and onboarding, social networks and more
ROI is meaningless without the right KPIs
• Return on investment – ROI – is about making something better
• What is made better with gamification? Figure out what that is:
• Your Key Performance Indicators
Gamification KPIs Matter
• By clearly stating the KPIs and measuring them before
the gamification project, you have your “control group” –the state of
affairs as it was before gamification.
• KPIs also let you better define the game rules that underlie
• KPIs help you better communicate with employees about what it is
the corporation cares about and what you’d like them to do about it
Process KPI vs Performance KPI
• Process KPI: a behavior you want to change. Example: accurate
reporting in CRM, a certain interaction with customers in a call center.
• Performance KPI: the end result – more sales, better customer
• What KPIs were you trying to achieve when you began the enterprise
KSF vs KPIs
• Key Success Factors – indicate the likelihood of gamification project
success – but they aren’t the goal in and of itself
• Key performance indicators: what you need to measure
Calculating Gamification ROI
• Use KPI results from a control group or from the period prior to gamification.
• Compare to the results after the project implementation.
• Assign a monetary value to the improvement.
• You must set a monetary value for non-monetary goals, such as customer satisfaction. What is the value the
organization places on better knowledge collaboration or customer satisfaction.
Account for time:
• If you expect the return to last 12 months, make sure you reflect the projected 12 month gain and not the
gain at the time of measurement. Take care to make realistic assessments of the time element – don’t take
10 years into account….
• What are the costs expended by the organization to carry out the project? These may be license costs,
integration costs, etc.
Divide Return by Investment – and this is your ROI.