How do you avoid the pitfalls and risks of gamification for customer engagement?

Let's remove the jargon. Gamification = PLAY. Make it PLAY. Not even a game. just PLAY. The neuroscience seems to support this. We become interested in things that are play to us. The rule for play is that something needs to match both my level of competence, and a suitable level of challenge. Too much challenge, and I become anxious because it's too hard. Too much competence, and I become bored because it's too easy.

The way we’d put it is - ‘Gamification’ involves creating a game-like experience to something that may usually be a bit boring or just not fun. For customer engagement, it's about making interactions fun and rewarding, encouraging customers to stay involved with your brand. Think of it like turning shopping or using a service into a game where customers earn rewards, creating loyalty and increasing satisfaction.

No, it's not about rewards. It's about PLAY, and then secondly it's about PROGRESS. Play means, "this is fun" Progress means, "I'm getting better" You need both. To find out how this is done, download a game on your phone, and watch how it "onboards" you by giving your increasingly harder challenges that are matched to your competence level. That's what we do.

I think a successful example is, Starbucks' Rewards program, where customers earn stars for purchases, leading to free drinks and perks. Super easy and straightforward. Tim Hortons' Roll Up the Rim to Win is a favourite of mine. They modernized the classic cup-rolling game by integrating it into their mobile app, allowing users to earn rewards and prizes with every purchase. For the record, I like the old way of the game, actually rolling up the rim, people loved that! Showing that sometimes, digitizing a game isn’t necessary.

In my personal experience I find gamification a useful tool because most customers and consumers like to be rewarded. People gravitate to the company where they “get the gravy” or “goodies.” Gamification is relatively simple as long as you determine the need first, do expert market research to fulfill that need, target your specific demographic and end by providing a reliable, proven product. Once you’ve attained the above, make sure to gift your customer base with “perks” because they deserve it and should be shown respect as often as possible. They are the basis for your bottom line flourishing or floundering.

Download a RPG (role playing game) on your phone or console or computer. Like Zelda. Watch how they onboard you. Learn! Game developers are the masters, and their work is everywhere.

2 come to mind - McDonald's Monopoly could be an example of an unsuccessful gamification. While popular, it did face backlash due to the complex rules and perception of unfairness, leading to customer frustration. Plus it didn’t fully integrate with the game pieces. Just a weird experience overall – difficult to play. Air Canada's Aeroplan program faced challenges with its gamification efforts. Customers often found the points system confusing and difficult to redeem, leading to dissatisfaction. The complexity and perceived lack of value in rewards turned many users away, showing that unclear and overly complex gamification can harm customer engagement rather than help it.

"Gamification" quickly becomes nonsense when we jut try to make things "a game", by having "points", and offering "badges" This is a very simple level of understanding. Rather, think of it as PLAY and PROGRESS. How do you make something PLAY for the user? And then how can they PROGRESS? Stick to that

Gamification for programs can work if implemented correctly. I believe the key thing to remember is how high is the 'barrier to reward' when creating these programs. If its too easy then your customer will leave shortly after arriving, and if its too hard or seems hopeless to reach the prize then the customer will give up as well. Finding a reasonable balance for what seems slightly difficult but achievable will make for a successful customer engagement or loyalty program.

In my experience, to avoid gamification issues and challenges, keep it simple and clear. Make sure the rules are easy to understand and the rewards are worthwhile. Do you have a prize budget!? Listen to customer feedback and update regularly. Ensure it enhances, not complicates, the customer experience. Test on a small scale first to catch any problems early.

Gamification for programs can work if implemented correctly. I believe the key thing to remember is how high is the 'barrier to reward' when creating these programs. If its too easy then your customer will leave shortly after arriving, and if its too hard or seems hopeless to reach the prize then the customer will give up as well. Finding a reasonable balance for what seems slightly difficult but achievable will make for a successful customer engagement or loyalty program. Having a scoreboard could also encourage slight competition which keeps customers hooked.

Play any Zelda game, and you'll quickly learn how to do gamification Or, download a role-playing game on your phone. Watch the way they onboard you. This is the cheapest and best lesson you can get, cheaper than a book.

Gamification expects a lot of an audience, so consider these factors: 1) Is there an active community invested in your brand that needs an outlet? 2) What is the time commitment expected of those who play along (daily, weekly)? 3) What is the immediate gratification (points, unlockables) to keep people coming back? 4) What is the longer-term benefit (leaderboards, swag, winners event)? 5) What are players expected to divulge (information, purchase preferences, social follows) that can help deliver insights non-obtrusively? 6) Is the gamification aspect true to the brand (promises, values, personality)? 7) What's the next-phase promotion for when the "game" is over or loses its intrigue, so it's more than a gimmick?