Chapter 4: Gamification - The Engine of Loyalty
As defined in the Merriam Webster dictionary, gamification is, “the process of adding games or gamelike elements to something (such as a task) so as to encourage participation.” The textbook likes to say that it is the product of motivation and big data coming together. Gamification works for everyone. It does not matter one’s age, ethnicity, religion, or whether you are from the United States or across the globe. There are 10 key mechanics of successful gamification (Paharia). They include fast feedback, transparency, goals, badges, leveling up, onboarding, competition, collaboration, community, and points. Each of these mechanics utilizes intrinsic motivators. To review, those motivators are autonomy, mastery, social interaction, progress, and purpose (Paharia). In every example of gamification there is autonomy. The user gets to choose how they want to interact with the game. The others change depending on the mechanic. For instance, a game with competition focuses on mastery and social interaction. Players get to compete with other players and have the opportunity to be the best. There are leaderboards that rank participants and this encourages them to try to do whatever they need to do to move up in rank. There are not only intrinsic motivators, but extrinsic as well. This would include badges, points, rewards, etc. There must be a reason to play the game. An example of a loyalty program that uses gamification is Chick-Fil-A’s. I do not need to have a loyalty program to get me to go to Chick-Fil-A, because it is one of my favorite fast food places! Their loyalty program, Chick-Fil-A One is just the cherry on top! With the app, consumers can earn points. This focuses on the intrinsic motivators, progress and social interaction. With every purchase, loyalty members get 10 points and these points go towards rewards such as free sides, desserts, and entrees. At 200 points you get a free ice cream cone. At 400 you get a medium waffle fry. At 600 you get a 2 count chicken tender entree. At 1200 points you get a 12 count chicken nugget meal. These rewards are extrinsic motivators to encourage customers to buy from Chick-Fil-A more often and to join the program to reap these benefits. The app also keeps track of how many points you have earned so that you can compare with other members. This breeds a sense of competition. Furthermore there are 4 tiers in this loyalty program. From lowest to highest it goes, member, silver member, red member, and signature member. In order to increase in rank, one has to purchase more food and gain more points (Kelso, 2023). This utilizes the desire to level up. Gamification is an essential part of any business. It is important for consumers and for employees alike. Research shows that 72% say gamification motivates them to do tasks and work harder on the job and 90% of employees say gamification makes them more productive at work (Kelly, 2023). Some simple examples of gamification in the workplace would be having an employee of the week or a peer recognition wall. There could be team competitions and employee rewards such as praise, bonuses, or flexibility in scheduling. https://www.poppulo.com/blog/gamification-employee-engagement https://www.nrn.com/quick-service/chick-fil-a-is-increasing-point-values-for-some-of-its-loyalty-rewards
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