Gabe Zichermann is the author of Gamification by Design and chair of the upcoming Gamification Summit NYC, where top leaders in the field – such as those profiled here – get together to share insight, key metrics and best practices. Mashable readers are invited to register with special savings at GSummit.com using code MASH10.
Gamification is the use of game thinking and game mechanics to engage audiences and solve problems. In other words, it means taking the best lessons from games like FarmVille, World of Warcraft and Angry Birds, and using them in business. Whether targeted at customers or employees, across industries as diverse as technology, health care, education, consumer products, entertainment and travel, gamificationâs impact can already be felt.
While some have criticized the concept of gamification as shallow or demeaning, the initial findings from gamification specialists are nothing short of astonishing. Regardless of your business model, the following seven gamified innovations should inspire you to strategize via game analysis.
1. Make a Market: Foursquare
The first incarnation of the location-based networking field was littered with carnage, leading many to write off the entire concept. But Foursquareâs founders, veterans of the now defunct Dodgeball, succeeded with an ace in the hole: game mechanics. Exposed to the concept while working at Area/Code (Zyngaâs recently acquired New York City-based game design shop), Dennis and Naveen concluded that mobile social networking would work if you were to change the dynamic from multiplayer to single player.
Instead of depending on the action of the crowd to provide intrinsic reinforcement (e.g. âHey, youâre around the corner. Letâs grab a beer!â), Foursquare overcame the empty bar problem by becoming a single-player game. The user competes for badges and mayorships whether or not anyone is there to meet him. In the process, Foursquare proved that location-based networking wasnât doomed to fail, that simple game mechanics can affect behavior, and that you can engage 10 million customers — all while raising $50 million.
2. Get Fit: NextJump
When you listen to NextJump CEO Charlie Kim describe his zeal for physical fitness, you immediately understand the energy that has propelled this interactive marketing platform into one of the nationâs fastest growing businesses. But keeping fit isnât just Kimâs personal goal — he told me itâs also a practice he believes his employees should value as a tool for improving their lives, reducing company insurance costs and preventing employee absenteeism. To achieve those goals, NextJump installed gyms in its offices, and built a custom application that enabled employees to check in to each workout. Ultimately, they rewarded the top performers with a cash prize. After implementation, around 12% of the companyâs staff began a regular workout regimen.
But Kim wasnât satisfied. By leveraging the power of gamification, he retooled the fitness âgameâ to become a team sport. Now NextJump employees could form regionally based teams, check in to workouts and see their team performance on a leaderboard. Leveraging the game themes of tribalism and competition had an astonishing effect on behavior. Today, 70% of NextJump employees exercise regularly — enough to save the company millions in work attendance and insurance costs over the medium term — all the while making the workplace healthier and happier.
3. Slow Down and Smell the Money: Kevin Richardson
In many countries, speed cameras snare thousands of drivers each year — a quick shutter flash earns a miserable ticket in the mailbox. In some countries, particularly in Scandinavia, ticket amounts correspond with the driverâs salary, rather than his speed. But Kevin Richardson, game designer at MTVâs San Francisco office, re-imagined the experience using game thinking.
His innovative Speed Camera Lottery idea rewards those drivers who obey the posted limit by entering them into a lottery. The compliant drivers then split the proceeds generated from speeders. Richardson used gamification concepts to turn an negative reinforcement system into a positive, incremental experience.
When tested at a checkpoint in Stockholm, average driver speed was reduced by 20%. If the plan were scaled across the U.S., the results could mean thousands fewer injuries, millions of dollars worth of reduced costs and substantial environmental benefits.
4. Generate Ad Revenues: Psych & NBC/Universal.
Psych is a popular program on the USA Network, but these days, creating value for TV advertisers means connecting to the web and social media in creative ways. Enter Club Psych, the online brand platform for the show, and among the first major media platforms to get gamified.
The brainchild of NBC/Universal executive Jesse Redniss, Club Psych implemented gamified incentives to raise page views by over 130% and return visits by 40%. The resulting rise in engagement has generated substantial revenue for the company, bringing registered user counts from 400,000 to nearly 3 million since the launch of the gamified version. The media conglomerate has since embraced the strategy across properties, bringing gamification to ratings leaders like Top Chef and the The Real Housewives.
Other content publishers, like Playboy, have seen similar results. Their Miss Social Facebook app has achieved an 85% re-engagement rate and 60% monthly revenue growth with gamification.
5. Make Research & Evangelism Count: Crowdtap
Getting product feedback is a costly and challenging effort. Therefore, most marketers have come to loathe ineffective surveys and expensive focus groups. Enter Crowdtap, the hot New York City startup launched earlier this year that reached $1 million in revenue and 100,000 users in just over 90 days. The company offers consumers gamified rewards to complete research tasks and to share brand advocacy with others — something mere market research simply cannot do.
Through the use of gamified, virtual rewards, the company has been able to raise average user participation by 2.5 times, thus reducing research costs by 80% or more for key clients. By targeting consumer rewards along a motivational (not demographic) axis, CEO Brandon Evans reports that competition-oriented users are four times more likely to create quality comments and 12 times more likely to refer others to the platform. Instead of competing against the system, they challenge themselves and peers to excel — an extraordinary achievement by any measure.
6. Save the Planet: RecycleBank
Modern life is wasteful, and easy fixes are rare. By tapping into peopleâs desire for reward and competition through gamified experiences, governments, utilities and entrepreneurial powerhouses are rewriting the rules of sustainability — and making the world a better place.
In a Medford, MA pilot program, households competed in an energy smackdown in which the winning family managed to lower its carbon footprint by 63%. In a program called Putnam RISE, Indiana families are making thousands of pledges to reduce power usage through a competition. The schools whose families conserve the most energy receive a cash prize. And across the country, incentives experts at Recyclebank are using the power of gamification to radically improve home environmental compliance. So far, theyâve utilized game mechanics such as points, challenges and rewards to drive breakthroughs. For example, the project has seen a 16% increase in recycling in Philadelphia, where the recycling rate has broken 20% for the first time in history.
7. Make Teaching Fun: Ananth Pai
As former globetrotting business executive turned elementary school teacher, Ananth Pai has seen it all. But when he inherited his class in White Bear Lake, MN, Pai realized there had to be a better, more engaging way to teach. So he grouped students by learning style, and retooled the curriculum to make use of off-the-shelf games (both edutainment and entertainment) to teach reading, math and other subjects. Students play on Nintendo DS and PCs, both single and multiplayer, for example. Their overall point scores are tabulated and shared using leaderboards.
In the space of 18 weeks, Mr. Paiâs class went from below third grade average reading and math levels to mid-fourth grade. The classroom success is supported by video interviews with his kids, who say âLearning with Mr. Pai is fun and social.â
In addition to these seven great tips, dozens more success stories pour in each week, underscoring the tremendous investment of time and money into gamification. Gartner Group estimates that by 2015, 70% of the Forbes Global 2000 will be using gamified apps, and M2 Research forecasts that U.S. companies alone will spend $1.6 billion on gamification products and services by that same year.
Gamification spans the gamut — from the hundreds of startups that launch with game mechanics incorporated into their products, to the big brands that make gamification a hallmark strategy. Regardless, the message is the same: the future will be more connected, more social and more fun than ever before.
More About: competition, foursquare, game mechanics, games, gamification, incentives, social media
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