How Gamification is Transforming Customer Loyalty

1. The Loyalty Game How gamification is transforming customer loyalty Presented by Colin Cardwell

2. WELCOME Who are we? What is Gamification? Why now? The game designers toolkit Gamification in action Q&A Your next steps

3. Who are we?

4. 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

5. HOUSE PROJECTS We are the publisher of Fizzy.comwhich 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

6. 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?

7. WHAT WE DO We use Intelligence, Technology and Creativity to develop Apps which CUT-THROUGH the noise, CONNECTwith your customers and drive the ACTIONS you want

8. WHO WE WORK WITH

9. Take a look at our Showreel on YouTube

10. What is Gamification?

11. 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

12. Or Gamification is… Making non-game activities more game-like

13. Why do we need it?

15. 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

16. Why now?

17. 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

18. Ad News, April 2011

19. 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

21. Meanwhile… …there has been revolution in the games industry

22. 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…

23. Kids! And then this happened…

25. NOW EVERYBODY IS PLAYING

26. 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.

27. 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

28. The Game Designers Tool Box

29. 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

30. Points

31. If you stop here then it’s just POINTIFICATION

32. Leader boards

33. Virtual Cash

34. Virtual Shops

35. 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

36. Paying for actions with a VC

37. FLEXIBILITY OF A VC

38. 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

40. 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!

41. 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

42. CONGRATULATIONS! You’ve just won an award! You have just won the BronzePaying Attention Trophy for paying attention during this presentation Well Done You! Keep paying attention to win the Silver Trophy

43. THE VALUE IN VIRTUAL AWARDS

44. CONSTANT NEAR GOAL COMPLETION When a player completes the first goal from set A, they have almost completed the first goal from set B and so on UNLOCK BONUS ITEMS Goal Set A (tiny goals) Goal Set B (small goals) Goal Set C (med goals) Goal Set D (big goals) UNLOCK NEW AREAS TROPHIES LEVEL ADVANCEMENT

45. FOURSQUARE BADGE EXAMPLE

46. SOCIAL MEDIA INTEGRATION Sharing Invites Social Graph Gifting

47. GOOD FOR THE GAME Promotes the game Increases playing time Keep players coming back Drives sales of Virtual Currency Enriches gameplay

48. GOOD FOR THE PLAYER Increase player status Social currency – people talk about games these days Deeper Engagement Competition Collaboration

49. 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

50. FUN

52. GAME DEVELOPMENT PROCESS Plan Design Document Prototype Develop Test Review Test Review Test

53. GAMIFICATION DEVELOPMENT PROCESS Plan Design Document Prototype Develop Test Review Test Review Test

54. 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

55. 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

56. Gamification in Action

57. LINKED IN

58. FOURSQUARE

59. MINT

60. STARBUCKS

61. PERISHER MYRIDE

62. Nike +

63. ABC READING EGGS

64. RSPCA

65. CENTURY 21

66. Q & A

67. YOUR NEXT STEPS NEW PRODUCT Plan Design Document Prototype Develop Test Review Test Review Test

68. GAMIFICATION STRATEGY PLAN Business Analysis Gamification System Design Integration Plan Marketing Strategy Phased Roll-Out Plan Fee: $10k

69. The End