Gamification has promises and pitfalls | MarTech

Gamification has promises and pitfalls | MarTech

2 minutes, 48 seconds Read

Gamification is one of those shiny objects that periodically catches the attention of companies – a tactic that promises to increase engagement and revenue metrics. After all, it seems like everyone is doing it, so why not your company too?

At its core, gamification means applying game design elements in non-game contexts to tap into human motivation, increasing engagement and participation over time. In marketing, this can translate into higher sales, stronger loyalty and a longer customer lifespan.

The danger of doing too much

Many marketers advocate this tactic. Fellow MarTech contributor Greg Heist argues that it’s worth considering – and I agree – but there are pitfalls associated with it.

Gamification has a lot of moving parts, from points, badges and leaderboards (PBLs) to activity loops and rewards. The danger lies in trying to implement everything at once, making it difficult to isolate what really works. When results fade, stakeholder trust fades. If you throw spaghetti at the wall you may be able to see what sticks, but it usually just makes a mess.

Understanding how to reinforce desired behavior is crucial, but motivation is difficult. People act for different reasons. Extrinsic motivation drives behavior through tangible rewards, such as cash or gift cards, while intrinsic motivation comes from the desire to contribute or do good simply because it feels good.

Dig deeper: The science behind high-performing calls to action

When rewards miss the mark

The danger arises when these motivations do not match. Offering an external reward for an intrinsically motivated action can weaken intention and reduce real commitment.

At one of my previous workplaces, a self-serve snack kiosk ran on the honor system. A sign once offered a $5 credit for anyone who reported a thief. The idea was to encourage honesty, but instead it made people feel uncomfortable. It felt awkward and even insulting to report a colleague for five dollars, likely discouraging the very behavior the company hoped to promote.

Rewards work on a schedule. A set schedule may encourage people to repeat simple behaviors, but its appeal quickly wears off. A variable schedule – like the unpredictability of slot machines – adds intrigue, but can leave people feeling manipulated.

Another pitfall is combining rewards with other gamification elements such as PBLs (points, badges and leaderboards). Leaderboards help participants see where they stand and can lead to better performance, but they can also discourage those who feel like they are too far behind to catch up. These elements can work together effectively, but only with careful balance.

Dig deeper: Acquisition gets the attention, but loyalty drives the results

Shiny tactics require thoughtful execution

The principles of gamification are promising, but success requires understanding the underlying theory, establishing the right metrics, and refining tactics over time. Shiny things – like gamification – require thoughtful attention.

My understanding of gamification goes back to Kevin Warbach’s Coursera course on this topic, providing valuable insight into both its opportunities and challenges.

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Contributing authors are invited to create content for MarTech and are chosen for their expertise and contribution to the martech community. Our contributors work under the supervision of the editors and contributions are checked for quality and relevance to our readers. MarTech is owned by Semrush. The contributor was not asked to make any direct or indirect mentions of it Semrush. The opinions they express are their own.

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