the loyalty game
TRANSCRIPT
The Loyalty Game
How gamification is transforming customer
loyalty
Presented by Colin Cardwell
WELCOME
Who are we?
What is Gamification?
Why now?
The game designers toolkit
Gamification in action
Q&A
Your next steps
Who are we?
WHO ARE WE?
Established in 2002
We are a team of 20 technology creatives working out of our
North Sydney studio
We are creators of Apps with over 200 projects under our belt.
We work on web, mobile, desktop and social platforms
HOUSE PROJECTS
We are the publisher of
Fizzy.com which has over
750,000 members
We are the publisher of
games like Swords and
Sandals. Our games are
played more than 20
million times every month
CUT-THROUGH CONNECTION ACTION
There are over 1000 Apps published every day - how do
you get noticed above the noise and CUT-THROUGH?
There are now HUNDREDS of technology platforms to
choose from – how do you choose the right
technologies to make your CONNECTION?
Your Apps have to work for your business, get a return -
how do you drive your customers to ACTION?
WHAT WE DO
We use Intelligence, Technology and
Creativity to develop Apps which CUT-
THROUGH the noise, CONNECT with your
customers and drive the ACTIONS you
want
WHO WE WORK WITH
What is Gamification?
Gamification is…
…when game design
and development
mechanics and
methodologies are used
to encourage changes in
behaviour or to
motivate people to
complete specific
actions
Or Gamification is…
Making non-
game activities
more game-like
Why do weneed it?
BROAD RANGE OF APPLICATIONS
Education, to motivate learners
Motivate and reward staff
Change in behaviour at a society level
Increase customer loyalty and therefore
increase sales and profits
Why now?
CHANGES IN CONSUMER BEHAVIOUR
Economy is reducing confidence
Tending to save more and spend less
Tending to buy during ‘sales’
Growth in buying online, offshore
Growth in purchase through ‘Daily Deal’
sites and services
More propensity to shop around
Ad News, April 2011
THE BUSINESS RESPONSE
More sales to tempt the consumer
Reliance on ‘Daily Deal’ type
promotions
Increased customer acquisition costs
Increased customer retention costs
Reduction in profit margins
Meanwhile…
…there has been revolution in the games
industry
Before the revolution we knew where we stood…
Gamers were young adult males who were anti-social, ate Pizza, drank Coke by the BIG bottle and had no life. Or maybe…
Kids!
And then this happened…
NOWEVERYBODY
ISPLAYING
SOME NUMBERS
Over 300 new games are uploaded to iTunes every day
20 million Facebook Apps are installed by users every day, games
are by far the most popular
More than half of Facebook active users play Facebook games at
least once per week
An average Facebook user creates 90 pieces of content each
month
There are over 250 million people playing Zynga games each
month
Zynga has been valued at as much $10 billion, around twice as
much as Electronic Arts, previously the biggest games company in
the world.
WHY MIGHT GAMIFICATION WORK?
Play is for everyone, not just for kids and young
adult males
In most situations, fun is better than not fun
The value in a reward can be much greater than the
value of the reward itself
People are social and what their friends/family think
matters to them
Often enough, the difference between choosing one
action/product over another can be tiny
The Game Designers Tool Box
THE TOOLS
Points
Leader boards
Cash (VC)
Things to buy (VI)
Economies (VE)
Levels and
Progression
Badges and Trophies
Social Media
Integration
Fun
Process
Version 2
Points
If you stop here then it’s just
POINTIFICATION
Leader boards
Virtual Cash
Virtual Shops
VIRTUAL ECONOMY
Points become Currency
They have more value because they can
be traded and spent
Virtual Items are far less expensive than
real items, but can still motivate
Virtual Items can be active as well as
passive
Paying for actions with a VC
Typical Actions
Sign up to a newsletter
Visit a website
Watch a video
Take a survey
Tell a friend about a product
Tweet/post to Facebook about a product
Visit a Store
Sample the product (test drive)
Purchase a product
Purchase lots of products
PAY THEM
V$20
V$50
V$100
V$250
V$500
V$750
V$1000
V$5000
V$20000
V$ No Limit
FLEXIBILITY OF A VC
Typical Actions
Sign up to a newsletter
Visit a website
Watch a video
Take a survey
Tell a friend about a product
Tweet/post to Facebook about a product
Visit a Store
Sample the product (test drive)
Purchase a product
Purchase lots of products
PAY THEM
V$100
V$50
V$100
V$250
V$500
V$750
V$1000
V$5000
V$20000
V$ No Limit
LEVELS AND PROGRESSION
Can be about the game
Or about the player
Defines the players journey
Typically, players enjoy increasingly challenging
levels
But it is much more complex than that
For a medium to large game, more time is spent on
balancing level progression than anything else
There are 133 books on Amazon on the subject of
game level design
GAMIFICATION LEVELS
Should reflect the journey you want your
customers to take
Progression should be achievable, especially in
the early levels, this is not a battle!
Can be complex if well explained, multiple
journeys
Should accommodate the breadth of your
customer base
Should be never ending!
BADGES AND TROPHIES
Makes a game ‘Juicy’
Plenty of Positive Feedback,
‘Hey you’re good!’
Can drive specific behaviours
Increases a players status
Something to share
CONGRATULATIONS!
You’ve just won an award!
You have just won the Bronze Paying Attention Trophy for
paying attention during this presentation
Well Done You!Keep paying attention to win the Silver Trophy
THE VALUE IN VIRTUAL AWARDS
The Award
The EffortThe Status
The Ceremony
CONSTANT NEAR GOAL COMPLETION
Goal Set A(tiny goals)
Goal Set B(small goals)
Goal Set C(med goals)
Goal Set D(big goals)
When a player completes the first goal from set A, they have almost completed the first goal from set B and so on
LEVEL ADVANCEMENT
UNLOCK BONUS ITEMS
TROPHIES
UNLOCK NEW AREAS
FOURSQUARE BADGE EXAMPLE
SOCIAL MEDIA INTEGRATION
Social Graph Gifting
Sharing Invites
GOOD FOR THE GAME
Promotes the game
Increases playing time
Keep players coming back
Drives sales of Virtual Currency
Enriches gameplay
GOOD FOR THE PLAYER
Increase player status
Social currency – people talk about
games these days
Deeper Engagement
Competition
Collaboration
GAMIFICATION ANGLE
Promotes the BRAND
Increases BRAND ENGAGEMENT time
Keep CUSTOMERS coming back
Drives sales
Enriches the BRAND
And can automate social media
relationships for the BRAND
FUN
CHALLENGING FUNObjectives, Rewards, Accomplishment, Frustration, Addiction, FocusGoals, Strategy, Obstacles, Levels
EASY FUNSurprise, Adventure,
Discovery, Mystery,
Imagination, CuriosityContent, Experiences, Exploration
PEOPLE FUNGenerosity, Co-operation, Niche Interests, NetworkingCollaboration, Competition, Community
CREATIVE FUNCreativity, Expression, Individuality, PersonalisationAvatars, Customisation, Choice
4 TYPES OF FUN
GAME DEVELOPMENT PROCESS
1. Plan
2. Design
3. Document
4. Prototype
5. Develop
6. Test
7. Review
8. Test
9. Review
10. Test
GAMIFICATION DEVELOPMENT PROCESS
1. Plan
2. Design
3. Document
4. Prototype
5. Develop
6. Test
7. Review
8. Test
9. Review
10. Test
VERSION 2 AND 3 AND MORE
Games have a life
You need to plan for version 2 early
Integrate player feedback
In itself a marketing opportunity
Version 2 should cost less than version
1
Increase the life of the franchise
THE TOOLS
Points
Leader boards
Cash (VC)
Things to buy (VI)
Economies (VE)
Levels and
Progression
Badges and Trophies
Social Media
Integration
Fun
Process
Version 2
Gamification in Action
LINKED IN
FOURSQUARE
MINT
STARBUCKS
PERISHER MYRIDE
ABC READING EGGS
RSPCA
CENTURY 21
Q & A
YOUR NEXT STEPS
1. Plan
2. Design
3. Document
4. Prototype
5. Develop
6. Test
7. Review
8. Test
9. Review
10. Test
NEWPRODUCT
GAMIFICATION STRATEGY PLAN
Business Analysis
Gamification System Design
Integration Plan
Marketing Strategy
Phased Roll-Out Plan
Fee: $10k
The End