Part I of “Gamification In Retail,” a series dissecting the Gamification trend: what it is, why it’s growing and how retailers are using it to drive loyalty and customer engagement.
Games are powered by six core elements: desire, incentive, challenge, achievement/reward, feedback and mastery. Human nature has wired us with an innate urgency to become the best at a specific activity, and more importantly, be rewarded for our expertise and dedication.
Hence the appeal of gamification: a principle and marketing tactic that is gaining quick momentum in the retail industry. In fact, the gamification market is worth approximately $100 million and is expected to reach nearly $2.8 billion by 2016, according to data by M2 Research.
. . . Companies across markets are partnering with gamification vendors, including Badgeville, Bunchball and Ifeelgoods to create more memorable brand experiences. Currently, nearly half (47%) of client implementations focus on user engagement, while 22% revolved around brand loyalty and 15% are focused on brand awareness, according to M2 Research.
“Gamification in retail is turning typical retail customer behavior — purchasing, visiting a web site or store, or signing up for a newsletter — into elements of a game where customers receive tangible or symbolic rewards for their participation in this game,” said Scott Silverman, Co-Founder and VP of Marketing for Ifeelgoods, a virtual goods solution provider.