Gamification research: The business case

This article is part of the CommerceLab Reference Library, a set of online business tools that provide introductory and background information to help educate those new to the areas we cover. 

Gamification has received a lot of attention in research circles and in the private sector over the past few years. There is no doubt that gamification research and its application to technology and business processes has been a much hyped topic of discussion, especially within the context of its use to engage the millennial generation that grew up with video games and who participate in gaming culture.

Many see it as a new way of thinking and a new way to approach marketing. Gamification presents a unique opportunity for companies to shift their approach and how they design and implement business processes and strategies as millennials develop into the target generation in terms of spending power. Should you act now and jump on board with gamification? Your answer is in the gamification research and popular opinion about the strategy.

Does Gamification Research Support the Hype?

While many view gamification to be the next big thing in terms of user engagement, it is often argued that hype for this business strategy is getting in the way of identifying if gamification is actually a viable strategy to motivate users to engage with brands online and through mobile devices through gaming-based experiences.

A recent literature review by researchers at the School of Information Sciences, University of Tampere, Finland, have put this question to the test. Researchers found that gamification does in fact work as an effective marketing strategy to engage users. However, the success of a gamification strategy is largely based on two key things:

• Context of implementation
• Users engaging with the technology

However, this doesn’t mean that companies are still not going to proceed with gamification strategies going forward. According to Gartner, more than 70% of the world largest companies will have implemented at least one gamified application within the next year, by the end of 2014.

Gamification research and popular opinion are quickly driving the strategy from being a new concept to becoming a widely adopted marketing strategy. Before companies jump the gun and invest heavily in this tactic, though, they need to understand and evaluate how this could benefit their particular business.

It is important that each company that is considering implementing a gamification strategy understand how it works; how it applies directly to their business, products and services; and how it is perceived by their targeted customers. Context is vital.

Companies also need to think strategically about what gamification research is telling them. Read the research, understand how the trend is evolving and evaluate the opportunities presented to implement gamification effectively. Do the rewards outweigh the risks? That is up to your company to determine.

What Does This Mean Going Forward?

Based on current gamification research and an understanding of millennials within the context of gamification, it is safe to say that further research is desired. Gamification as a business strategy is still very new, and there is still a lot to be learned about how to use it most effectively as a marketing tactic to engage targeted users.