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Gamification Can Help Improve Your Marketing Mix

One of the hottest marketing trends right now is gamification, which involves integrating gaming elements into marketing strategy

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Kalam Labs raises pre-seed from Lightspeed and Y Combinator to bring Live Game Streaming into Education

Gamification is everywhere and is expanding thanks to the revival of gaming. An effective marketing strategy that uses gamification will place challenges, rewards, fidelity, and ranking at its core. The user's desire for competition, interaction, and recognition is the foundation upon which gamification is built, and as a result, it has a distinctly social element. Users become actors, active participants, and growth engines as a result. The community can then be brought together by shared values and interests. Gamification can be a useful tool for developing marketing campaigns due to data collection, provided that regular reporting is also included. Gamification can be applied to platforms (such as Instagram or Snapchat filters) and their supporting tools (such as TikTok competitions, web applications, or the use of motion design to increase engagement on landing pages). It also applies to platforms (such as e-commerce websites) and formats (like Instagram or Snapchat filters). A few well-known examples of effective gamification include the Starbucks rewards programme, a Nike fitness challenge, and Wordle's streak counter. All these gamification techniques have worked because they encourage participation and involvement. Gamification offers a level of user engagement that is unmatched by almost any other digital marketing strategy.

Gamification should be used by a brand for a variety of reasons, including that it provides an immersive experience that extends the brand's storytelling; it enables the creation of innovative and personalised customer journeys that keep customers' attention; it enlists loyalty from the customers; and, also, engagement is high, as are conversion and transformation rates.

Moving ahead in the game

Between 2022 and 2027, it is anticipated that the worldwide gamification industry will see a CAGR of 26.5%. The primary drivers of the gamification market's expansion are the use and use of cutting-edge technologies like artificial intelligence (AI) for processing and displaying personalised results as well as the rising digitization of organisations. To gain meaningful insights from their customers, more and more companies are using cutting-edge technology and cloud based solutions. By removing uncertainty in customer motivations and assisting customers in achieving goals more successfully, Al-based gamification models have been able to provide precise solutions.

The worldwide gamification business is quite cutthroat, with several large competitors concentrating on growing their customer bases abroad. Strategic collaborative initiatives are being used by businesses like Microsoft Corporation, Cognizant, and MPS Interactive Systems Ltd to boost their market share and profitability.

Gamification in businesses is used to increase stickiness, content creation, and purchases. Top retailers, e-commerce sites, and consumer brands including Samsung and Dannon are already adopting gamification to increase their annual revenue and improve their customer profit margins. Sectors such as healthcare, nonprofits, and human resources also increasingly use gamification to drive engagement and spread awareness and learning.

Gamification has evolved into a desirable and incredibly effective tactic for product-focused brands and merchants. It has made the routine, repeated act of buying things every day into something considerably more pleasurable. Gamification strengthens any online business and brand strategy by enticing customers to explore new "levels," interact for longer periods of time, and receive a psychological reward that has tangible advantages.

The market for healthcare gamification was predicted to be worth $25.3 billion in 2020 and is anticipated to expand at a CAGR of 14.6% between 2021 and 2027. Apps created for self-managed medication, fitness and nutrition, physical therapy, and emotional health have all been strongly inspired by healthcare gamification.

Several fitness brands have also employed gamification to make fitness more enjoyable. For example, Nike+ gives its more than 100 million users the ability to measure their activities, establish goals, evaluate their progress, and perform better. By encouraging people to keep improving and leading healthy lifestyles, the company has used gamification to build a community around running and friendly competition.

Hurdles that need to be overcome

Like every other marketing strategy, gamification has some drawbacks of its own. But, if used effectively, this strategy can produce the best outcomes for marketing initiatives. When developing a gamification strategy, brands must keep in mind that the plan should be interactive and engaging so that consumers will want to use it.

It can be difficult to create the ideal gamification for marketing efforts. The goal is to develop a game that players desire to play and that also aids the business in achieving its marketing objectives. For gamification, marketers cannot use a "one size fits all" strategy. A game that does well for one company might not do so for others. It's crucial to have a good understanding of the target market for a successful gamification strategy.

Gamification can occasionally become complicated, and it can be difficult to design a game that fulfils every marketing purpose while being suited to the organisation's target audience. These games must go beyond the benefits and prizes offered and must build an intimate and emotional bond with the players.

Common gamification pitfalls

Gamification is the same as playing a game - Despite similarities to gaming, gamification focuses on the practice of incorporating gaming mechanics and design principles into non-game environments with the aim of inspiring and energising individuals by making their everyday chores more enjoyable.

Gamification will engage everyone - Although fun is one of the objectives of gamification, it is also a very vague and relative concept. Because of this, sometimes applying gamification activities to the environment backfires. It's important to keep in mind that involvement in gamification marketing has to do with voluntariness and choice, among other things. Gamification tactics lose their impact when people are made to perform a task against their will.

Will gamification continue to entice?

Gamification as a marketing tactic has the potential to capture the user's attention while subtly building a positive brand image. It elicits genuine user emotions, such as rivalry and enthusiasm, which boost engagement and cultivate devoted users. Instead of just posting an image or piece of information, it enables one to interact with the user on a more emotional level. Using gamified solutions to promote a business or product can significantly increase user engagement, raise brand awareness, and, most importantly, turn prospective buyers into devoted patrons. Winning businesses are embracing strategies like making everything a wonderful experience and reaching closer to customers to involve them in the process. Let the games begin!

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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magazine 25 March 2023

Amit Tiwari

The author is the Global Head of Marketing Demand Centre of Tata Consulting Services, Amit leads MarTech strategy and operations to support the business and marketing objectives. For over 21 years, Amit Tiwari has proved a key thought leader in the MarTech space. He understands and adapts technology faster and is also keen on experimenting and exploring new technology and new ventures in marketing.

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