This document provides an overview of a presentation on gamification and loyalty by Marigo Raftopoulos. The presentation discusses how gamification can be used to design customer experiences and loyalty programs. It notes that customers are increasingly bored, disengaged, and uninspired by traditional loyalty programs. The presentation then covers how game elements and game thinking can be used to better engage customers. It provides examples of gamification from companies like Nike, Starbucks, Jay-Z, and Expedia. The presentation also discusses future opportunities with technologies like augmented reality and virtual reality. It concludes by offering 10 key steps for implementing gamification, focusing on being courageous, curious, creative, and putting customers first.

1. Gamification: Loyalty by Design
Loyalty Summit, Mumbai 2015
Marigo Raftopoulos

2. We are bored,
disengaged &
uninspired
Engaged
Disengaged
Enrolled
20%
40%
40%
Towers Perrin 2011; Gallup 2013;
CEO Institute 2013

3. Carl Jung
Modern Psychology
Who Am I
Sri Ramana Maharashi
Joseph Campbell
Hero’s Journey
Follow Your Bliss
Jiddu Krishnamurti

4. Loyalty by Design
• Today’s session
– Challenges for loyalty
– What is gamification
– Design customer experience
– Examples and case studies
– Technology & platforms
• Challenge Questions
– Learn from each other
• 10 key steps
– Set you on your way
– Questions

5. About me
• Independent business strategy advisor
– Private & public sector
– Technology startups and incubators
– EU Commission Horizon2020
– Mixing business & games for 10+ years
• PhD researcher: gamification and
business innovation
• Technology neutral

6. What do customers want from loyalty
programs?
• Not great news: High cost,
high maintenance, low loyalty
• Customers have been trained
to expect financial rewards
• They think you’re incentivising
them to spend more (trust
issues)
• Need to move to a positive,
customer centric model Save money Receive rewards
Earn rewards Other
Technology Advice 2014
57.4%37.5%

7. Key challenges for customer loyalty
• Brand loyalty is waning
• Milennials are not engaging
• High cost to run
• Poor design
• We’re at an impasse
• Significant opportunities emerging

8. Do you really know your customer?
What are your assumptions
about your customer needs,
wants and desires?
What are your default decision
making models? How do you
test & revise them?

9. This is what game designers
know…

11. Who am I?
Reiss 2000: 16 core desires…

12. Power

13. Independence

14. Honor

15. Community

16. Ownership

17. We are bored,
disengaged &
uninspired
Engaged
Disengaged
Enrolled
20%
40%
40%
Towers Perrin 2011; Gallup 2013;
CEO Institute 2013

18. When you are listening to
somebody, completely, attentively,
then you are listening not only to
the words, but also to the feeling
that is being conveyed, the whole
of it, not part of it.
Jiddu Krishnamurti
(via Joseph Campbell)

19. How do your customers FEEL?
Are you taking more than you are
listening?

20. How gamification can be used in loyalty
• Game elements, game thinking
– Engage interest, connect, intrigue, interactive
– Part of a blended approach
• Using behavioral economics, to frame choices
with game mechanics
– To engage and motivate
– Enhance systems
– Trigger responses
• Deep customer engagement
– Rethink and redesign end-to-end systems
– Delighting your customers
– Emotional connection
– Designing experience
– Long term relationship rather than a short term fling

21. Three major types gamification

22. Gamification in Loyalty (1/3)
1. Games & simulations
• Engagement. Awareness. Marketing
McDonald’s Channel to
market strategy
Qantas FF partner
awareness program

23. Gamification in Loyalty (2/3)
2. Game Mechanics
• Rewards. Recognition. Reputation. Status. Community. Challenge.
Randomness. Surprise. Points. Badges. Leaderboards…
xxx

24. Gamification in Loyalty (3/3)
3. Playful Experiences
• Deep connection with the customer. Create long term
relationships. Customer journey focused. Integrated.
Expedia.com geo-
location game to build
relaltionships
“Fantasy Football” rewards
loyal customers with an
active experience

25. Strategy always comes first!
• Do you really know your customer?
– Challenge your assumptions about who they are, what their
needs are, what inspires them
• Clearly articulated business goals?
• Does this fit into your overall Brand identity,
promise and narrative?
• Are you designing a holistic, integrated
customer experience?

26. What resonates with you so far?

27. Loyalty Experience Design Matrix
(simple example using only financial metrics)
Shift existing
customers to spend
more or higher
margin
Acquire new
customers at high
margin
products/larger
basket
Retain existing
customers,
spending the same
levels
Acquire new
customers at entry
level spend
CUSTOMERS
SPENDING
Retain Acquire
Uplift
Maintain
A C
DB

28. Customer experience design is different in
each quadrant
Shift existing
customers to spend
more or higher
margin
Acquire new
customers at high
margin
products/basket
Retain existing
customers,
spending the same
levels
Acquire new
customers at entry
level spend
CUSTOMERS
SPENDING
Retain Acquire
Uplift
Maintain
ENGAGE
STABILIZE ENGAGE
INNOVATE
Tactical
promotions,
discounts and
rewards won’t
influence long
term behavior
change
A C
DB

29. Growth options will require
re-engagement on a different level
Shift existing
customers to spend
more or higher
margin
Acquire new
customers at high
margin
products/basket
Retain existing
customers,
spending the same
levels
Acquire new
customers at entry
level spend
CUSTOMERS
SPENDING
Retain Acquire
Uplift
Maintain
ENGAGE
STABILIZE ENGAGE
INNOVATE
Tactical
promotions,
discounts and
rewards won’t
influence long
term behavior
change
A C
DB
*
*
*
*
Growth options

30. Gamification optimizes loyalty (1/2)
• Tool to influence consumer behavior
– Frame choices & pathways
• Customer centric by design
– Human centered design
• Digital, multichannel, interactive, trans-media
– No media is independent of each other

31. Gamification optimizes loyalty (2/2)
• Seamless customer experience
– One company narrative
• Strategic mindset
– No gimmicks which are inauthentic
• Data generating
– data analytics and social media

32. Designing customer experiences..

33. Four gamification case studies:
Nike * Starbucks * JayZ * Expedia

34. Nike
Gain control over supply chain
Games
Game Mechanics
Playful Experiences
Empowering Customers

35. Socialization, challenges, curate & display achievements,
micro rewards, track exercise, give control (empower)

36. Customer experience: smarter, social,
motivational

37. Nike own the customer & now
control their supply chain
7 million runners
Brand loyalty
Big Data
57,000 materials
Vendor index
Open Data
Customer insight
Open access for devs
Business innovation

38. New product awareness: Help athletes stay warm while training, points, awards,
leaderboard. Try products. Win a meeting with the athletes

39. What does it feel like?

40. Starbucks
Differentiate an ordinary experience
Capture customer buying behaviour
Technology integration
Subtle gaming elements
stars, levels, redeem, random rewards & surprises

41. 1
2
5
3
4
1
5
1. Onboarding
2. Rewards
3. Levels
4. Customisation
5. Gifting
Feedback
Surprise
Payments
Marketing,
Sales,
Loyalty

42. Technology integration for
convenience
Integrate payment methods with mobile technology
Pre-order and pre-payment
Membership doubled from 4.5m in 2012 to 9.0m in 2013

43. Starbucks knows
their customers, &
keeps them
engaged

44. Engagement is continuous.
You don’t set and forget

45. JayZ Decoded
Rewarding loyal customers
Epic adventure!
Multi-media, Multi-channel
Geo-location based game
Partner alliance strategy
(Random House + Bing Maps + Universal Music)

46. Create Experiences
Deeper customer relationships

47. A glimpse into and deep connection with the man that is the

48. Creating shared experience

49. Connection of the physical, virtual, and emotional

50. What does it feel like?

51. Expedia.com
Customer engagement by creating
experiences through games, location
base competitions, playful experiences

55. Different gamification for different
purposes

56. Different forms of gamification provide a holistic
experiences for customers to interact with your
brand

57. Challenge Question:
Which of these examples have
sparked ideas or your imagination?

58. An eye to the future
Gamification-enabled technologies

59. An eye to the future:
Gamification + Virtual/Augmented Reality +
Web/Mobile
Augmented Reality shopping: delight,
curiosity, discovery, awareness,
marketing, feedback
+ Gamification enabled: Playful experiences, onboarding, feedback-loops,
rewards, prizes, sharing, data capture, tech integration
Heinze AR app: customers win cookbook
& prizes when camera placed over the
product. Polls, location & preferences

60. An eye to the future:
Gamification + Virtual/Augmented Reality +
Web/Mobile
3D Augmented Reality
virtual fitting room
(shopping center)
Virtual Reality Fitting
room (web, home based)
+ Gamification enabled: Playful experiences, onboarding, feedback-loops,
rewards, prizes, sharing, data capture, tech integration

61. Gamification platforms for loyalty (1/2)
• Technology options:
• Digital gamified apps and web platforms (80+)
• Game and app developers
• Media agencies
• Experience & service designers
• Many mechanics in use – be selective & strategic
• Average cost of traditional loyalty programs US$500,000
(2010) can now be run for US$1000 on new platforms
• Only 5-10% business have a loyalty program – this
technology opens affordable options, esp for SMEs

62. Gamification platforms for loyalty (2/2)
• Engaging on-boarding mechanisms based on
motivation & behavioural design to:
• Join or sign up
• Stay in the program
• Participate in the program
• Integration with other digital technologies – mobile,
web, email, sms, geo-location
• More convenient and engaging
• Prolific data collection and analytics
• Intelligence before/during/after purchase

63. Challenge Question:
How are you looking to integrate these
new technologies in your program?

64. Ten Key Steps: 5+5
5 things to be, 5 things to do
• This may not be what you think
• Customer strategy
• Product strategy
• Technology strategy
• Capability strategy
• But you already know how to do this

65. Ten Key Steps: 5+5
5 things to be:
• Be courageous
• Stretch the boundaries of your product/service model
• Be curious
• What really makes your customer’s tick? Keep asking WHY?
• Be creative
• Dare to try something different, even if you think you can’t.
• Be playful
• Socrates: “an hour of play, a year of conversation”
• Be proactive
• Or else your competitors will. The time is never ‘right’.
Courageous
Curious
Creative
Playful
Proactive

66. Ten Key Steps: 5+5
5 things to do:
• Loyalty is everyone’s job, so share the love
• NASA janitor: “I’m helping put a man on the moon”
• Put a team together tomorrow and run a design-thinking exercise
• Rethink your product, service, and your loyalty paradigm with ‘radical ideas’
• Ask your customers and really ‘listen’
• Be prepared to let go of company folklore (satisfaction is not loyalty)
• Experiment by starting small on one easy project
• Big things grow from there (Commonwealth Bank)
• Borrow ideas
• No need to reinvent the wheel (Expedia on JayZ)

67. Most importantly,
What does it feel like to your customers?

68. Thank you!
Marigo Raftopoulos