84% of internet users aged 16-64 are now ‘Gamers’(Dentsu 2024 State of Gaming Report), driven largely by mobile gaming and increased platform access. Of these, the average age of a gamer is now 37, up from 33 in 2015. This new, broader audience that’s receptive to gaming (with more disposable income) provides exciting opportunities for brands interested in gamification marketing.
Gamification marketing can elevate brand loyalty, drive consumer lifetime value and foster engagement at every touchpoint throughout the customer lifecycle stage. Merkle, dentsu’s CX agency, was recently ranked as a leader in Everest’s PEAK Matrix for Loyalty Solutions, meaning our experts are well positioned to provide you with expert advice around this topic.
What is gamification?
Gaming is defined as the act of playing a game for entertainment purposes. Gamification, however, is the application of game-like elements (such as points, levels and rewards) to non-game contexts, such as marketing or education.
Whereas ‘gaming’ is purely entertainment-focused, gamification aims to increase engagement and motivation in non-game experiences.
Given that people are more likely (49%) than not (23%) to feel their attention span is shorter than it used to be, brands are turning to gamification marketing as an effective tool to engage audiences. Through our work with clients, we know that gamified experiences capture consumers’ attention longer than traditional media and enhance knowledge retention. By integrating gamification strategies with rewards, brands can craft engaging, loyalty-building experiences with consumers.
Social vs. individual drivers in gamification marketing
To engage customers effectively, gamification marketing strategies must address both individual and social motivations. New users often seek individual rewards whereas long-term customers may be more driven by social needs, like community connections. It’s unlikely that your brand will attract new users via social connections, as they have no current association with your brand – so it is not of use to them. However, if you’re trying to retain loyalty amongst regular customers, there needs to be an element of social connection to give customers a reason to stick with your brand. Therefore, you need to use a mix of individual and social tactics to engage consumers at different stages of their relationship with your brand.
There are of course further nuances within this. For example, a customer who wants to top the leaderboard to show their skill or status does so for their own needs, not to share the achievement with others despite this being a social mechanic.
This is why brands also need to look at sub-motivations when considering gamification marketing.
| Main Motivation | Individual Drivers | Social Drivers |
| Sub-Motivation | Learn Solve | Connect |
Reward Create | Compete |
Sub-motivations explain why customers interact with your brand. For example, someone might learn something new about your products to improve themselves first (an individual driver), then share that knowledge to benefit their social circle (a social driver).
Game mechanics: Understanding gamification in marketing
Game mechanics in gamification are tools that align with user motivations and help guide customer journeys. Once you have understood your customer's main and sub-motivations, you can align game mechanics to fit your audience’s needs.
Mechanics vary in effectiveness, depending at which stage they are used in the customer journey. Our work on Vodafone’s ‘Elf & Seek’ campaign is an example of hide-and-seek game mechanics being used to drive both engagement and brand awareness. The campaign was born from a desire to uplift people’s spirits and engage consumers in a fun, free, and inclusive way amidst the cost-of-living crisis. This led to the creation of the UK’s largest augmented reality-powered Christmas treasure hunt. Dentsu Creative and Carat worked together to develop the gameplay and narrative, encouraging participants to scan their phones across various locations to find Santa’s missing elves. Using cutting-edge augmented reality, geotagging, and media technology, players could drop a candy cane to lure an elf to their location, giving them the chance to win thousands of prizes through Vodafone’s exclusive rewards programme, VeryMe.
Over 100,000 players participated in the first three days and Vodafone saw a total of more than 245,000 players overall. On average, each player spent two minutes per session and over 20,000 prizes were claimed. Positive social sentiment reached an all-time high of 63%, showing the impact a well-considered gamification strategy can achieve. By weaving fun challenges into an interactive format, Vodafone reinforced its digital presence while providing some festive cheer and driving brand loyalty.
Aligning game mechanics with your brand identity
Your brand identity will shape the gamification strategy and mechanics you employ. For instance, luxury brands may avoid rewards like giveaways, as allowing anyone to access exclusive products can diminish exclusivity. A great example of the importance of aligning game mechanics to your brand identity and audience is Volkswagen’s ‘Road Tales’ campaign. With help from Dentsu Creative, Volkswagen created an award-winning, gamification-style app to transform car journeys for children.
Using a combination of public and curated data sources, the team created a digital product and campaign that used location-based interactive audiobooks to make car journeys more enjoyable for families. Turning road objects into magical characters in a story, the team used gamification mechanics to create stories that reacted to the user’s surrounding environment.
The campaign encouraged users to interact with Volkswagen in an innovative way, and delivered a customer experience that would resonate long after the campaign ended, helping to ensure Volkswagen remained top of mind. The app reached number one in the app store within 24 hours and won six silver Cannes Lions in Entertainment, Brand Experience, Audio, Digital Craft and Mobile.
Key takeaways:
- Identify the journey stage—Gamified marketing experiences change depending on when you want to talk to the customer. Establish a firm foundation by thinking about your objectives and what you want to achieve from this experience.
- Know your audience - Although the motivations at each journey stage for a gamified experience are similar, the mechanics may shift wildly depending on your audience. Know who they are and their expectations before ideating your experience.
- Know your brand - What are you selling, and where are you selling it? Once you have identified this, consider the depth of relationship you need to build with your audience. This will support the gamified experiences you choose to adopt.
Finally: Make it fun!
If you’d like to find out more about gamification, then take a look at our 2024 State of Gaming report. You can also find out at how we help clients to develop their loyalty and engagement experiences on Merkle’s website.
Loyalty is one of the most critical indicators of a brand’s success. If you need support with your loyalty strategy – whether that be differentiating your brand in a crowded marketplace, establishing clear brand authenticity or delivering seamless customer experiences, then get in touch.
FAQ:
What is a gamification strategy?
A gamification strategy is a plan to integrate game mechanics, like points, levels, or social challenges, into non-game context customer experiences.
How does gamification increase engagement?
Gamification in marketing increases engagement by tapping into users’ motivations and offering interactive experiences to capture attention and keep customers interested.
Does gamification marketing work for all brands?
Gamification marketing can benefit many brands, but the strategy should be tailored to align with brand identity and audience preferences.
What are examples of game mechanics in advertising?
Game mechanics used in advertising include point systems, leaderboards, puzzles, and rewards, each designed to drive different user motivations.
How do brands use gamification apps to engage customers?
Brands use gamification apps to offer mobile-friendly, game-like experiences to capture customer interest through interactive challenges and rewards. For example, a retail brand may introduce a loyalty app that rewards users for purchases or interactions, encouraging continuous engagement through accessible gamified elements.