18 January 2018

The power of gamification in the enterprise: what, why and how

gamification in the company

According to the study Gamification Market by Solution, According to Markets and Markets, forecasts for the growth of gamification in the enterprise and other areas of application suggest that this sector will grow from $1.65 million in global turnover in 2015 to $11.10 million by 2020. What is the reason for this extraordinary increase in gamification?

The explanation lies in the ability of this technique to enhancing interest and motivation of the participants and thus to better ensure the correct learning process.. In fact, according to the work of Michael Lobardo and Robert W. Eichinger, adults acquire knowledge under the 70-20-10 rule, i.e. 10% of their development occurs through traditional training initiatives; 20% is obtained through social interaction (feedback, observation, advice, coaching...); and, finally, 70% of learning is generated by one's own experience.

It is here that the gamification in the company, as a method for improving skills through games and situation simulations.

Table of contents

What is gamification?

According to Gabe Zichermann and Christopher Cunningham, authors of Gamification by Design, gamification consists of “A process related to player thinking and game techniques to attract users and solve problems”.

In the same vein, Karl. M. Kapp, in The Gamification of Learning and Instruction: Game-based Methods and Strategies for Training and Education A learning technique defined as “the use of mechanisms, aesthetics and the use of thinking to to attract people, incite action, promote learning and solve problems”.

In short, it is about “applying game strategies (thoughts and mechanics) in non-game contexts with the aim of encouraging people to adopt certain behaviours», as José Luis Ramírez explains in Gamification. Game mechanics in your personal and professional life.

Its use in business, therefore, It is in full expansion in the corporate context as one of the Key business management trends, thanks to the capacity this methodology has to involve employees, managers and customers in a fun way to improve the company. That's why it's not only used in human capital training activities, but it's also common to see it in sales, recruitment, customer relations, or communication and branding departments.  

Why incorporate gamification into the company?

The power of gamification in business is based on the attitude it awakens in users. As Jesús Díaz and Yolanda Troyano explain in The potential of gamification applied to the educational field, in gamification, “game elements, such as incentives, rewards, points..., are used to obtain desired behaviour from the player in this way”.

This way, through this methodology, it harness the innate playful and competitive spirit to boost participation and engagement in the different game dynamics, leading to the following benefits:

  • More Interaction and participation of the target group for gamification.
  • Better learning in the development of skills and competencies.
  • Promotion of cohesion and coordination of professionals.
  • Increase in commitment and loyalty of customers.
  • Improving the work climate.
  • Boosting the Satisfaction of staff and clients.
  • Improving the Company reputation and image.
  • Ease of obtaining feedback.
  • Optimisation, as a consequence, of business performance.

Here's how to apply gamification in a business context: * **Employee Training and Onboarding:** Use game mechanics like points, badges, and leaderboards to make learning more engaging. This can help new employees grasp information faster and feel more integrated into the company. * **Sales and Performance Incentives:** Create challenges and competitions with rewards for hitting sales targets or achieving specific performance metrics. This can motivate sales teams and drive better results. * **Customer Loyalty Programmes:** Design loyalty schemes that incorporate game elements. Customers can earn points for purchases, unlock rewards, or participate in challenges to foster repeat business and brand advocacy. * **Internal Communication and Collaboration:** Gamify platforms used for team discussions or project management. Features like points for contributions, "likes" or upvotes on ideas, and team-based challenges can encourage participation and knowledge sharing. * **Productivity and Task Management:** Break down larger tasks into smaller, more manageable steps with clear objectives and rewards. Gamified to-do lists or project trackers can make work feel less daunting and more satisfying to complete. * **Innovation and Idea Generation:** Set up challenges or "hackathons" where employees can submit innovative ideas. Implement a voting or reward system to encourage creativity and identify valuable contributions. * **Team Building and Morale:** Organise team-based games or challenges that require collaboration and problem-solving. This can improve relationships between colleagues and boost overall morale. When implementing gamification, consider: * **Clear Objectives:** Define what you want to achieve with gamification. * **Target Audience:** Understand your employees' or customers' motivations. * **Relevant Mechanics:** Choose game elements (points, badges, leaderboards, challenges, rewards) that align with your goals and audience. * **Feedback and Iteration:** Monitor the impact of gamification and be prepared to adjust your approach based on results.

The ways of applying gamification techniques in a company are very diverse and can be carried out in different areas, as we have previously indicated, and through different channels (specialised platforms and apps, team-building activities, group dynamics...).

As examples of successful gamification, Correos saved around 70% of the expense it would have cost to overhaul its website, by applying gamification. in its template. He proposed a game: employees had to locate faults and make proposals for improving the page within 13 days, with 700 gifts awarded to the best. The initiative gathered over 50,000 proposals. In contrast, in Domino's Pizza, gamification was used to build customer loyalty and improve sales by creating a mobile app, Pizza Hero, where users could create their own pizza. And in Spain, BBVA boosted its customers' digitalisation through the Game BBVA application..

However, Virginia Gaitán, in her article Gamification: Learning made fun, The mechanical techniques Most used:

  • Point accumulation The assignment of a quantitative value to certain actions or achievements, which are added up as they are acquired.
  • Level scaling: allows participants to work their way up through the different levels as they overcome the proposed challenges.
  • Prize winnings Different awards are granted as objectives are met.
  • Gifts: when the user reaches a goal, he/she gets a gift.
  • Classifications: A competitive spirit is fostered by producing rankings among participants.
  • Challenges Likewise, each person is encouraged to give their best and achieve a challenge before the rest of the users.

To realise all these rewards, companies have at their disposal Gift vouchers, a convenient, versatile, practical and 100% customisable gift card that adapts to the company's needs at any given time, allowing for gamification rewards as part of an employee incentive scheme, as well as in customer loyalty or corporate marketing campaigns.

Edenred Spain