NAFCU Services Blog

Originally posted in The Federal Credit Union magazine.

Guest post written by Wayne Conte, Executive Vice President, Affinion Group

Affinion Group is the NAFCU Services Preferred Partner for AD&D Insurance, Enhanced Flex Checking, and Identity Theft Protection.

Although the concept has been around for decades, the term “gamification” was coined in 2002 and exponentially gained popularity around 2010. Gamification is the use of game mechanics to engage users and influence behavior. It’s widely used for diverse applications in marketing, education, loyalty building, productivity boosting, security authentication, incentive programs, and more. Chances are you already participate in several gamification programs.

One example of gamification dates back to the 1980s, when the airlines launched their frequent flyer programs. The result is millions of participants earning points or miles in exchange for their loyalty. The airlines quickly determined that air travelers were more interested in achieving elite status than earning rewards. Leveraging the consumer’s need for status —or achievement— is demonstrated in other gamified applications such as receiving endorsements on LinkedIn and “likes” on Facebook, earning badges on TripAdvisor or Yelp, becoming a mayor on Foursquare, or tracking fitness activities with the wearable Jawbone.

According to a Gartner report, more than 70 percent of the Forbes Global 2000 companies will have at least one gamified application by 2014. These companies will invest billions of dollars over the next few years to implement gamification and, ultimately, differentiate themselves through gamification strategies. As consumers become more accustomed to gamification in their everyday lives, it makes good business sense for you to engage both your members — and your employees — in the same manner.

Here’s how to get started:

1. Know your players.

Knowing your target demographic and their preferences is critical to program design. Understand their lifestyle, education, income and age. Do you have baby boomers or millennials? In what manner will they play the game? Will they engage through a website or social network, or will they use a paper scorecard? Doing your homework will help you develop a better program and effective messaging.

2. Define your objectives.

Ultimately, what do you wish to accomplish through your program? Are you looking to achieve brand awareness or increase your number of auto loans or Web traffic? Maybe you are looking to retain members. Be specific as to your objectives, and then develop a budget with measurable goals and a realistic timeline. Taking these steps will prevent your program from growing out of scope or becoming unwieldy. Gamified programs for employees can boost sales productivity, improve the member service experience, or simply increase knowledge about a particular product. For employee gamication programs, there are three special considerations. First, assign a champion on the senior management team who will promote the program. Second, consider how much time your employees need to actively participate. Lastly, ensure the program objectives do not compete with your credit union’s organizational goals.

3. Track your results.

If something is amiss in the program design, you’ll see it in the results. It is important to set and track participation and achievement rates. Be sure to regularly communicate results with your staf and keep in mind that consumers — and your employees — want recognition for their game participation. This leads to higher performance as they strive for the next level.

If you find you are not achieving your desired results, consider these pitfalls:

■ Is the game too easy? Developing skills and mastery makes a game fun and keeps players engaged.

■ Did you narrowly limit who can participate? There’s a fine line between the allure of exclusivity and the boredom of too many rules.

■ Are you forcing social networking on participants who would not otherwise engage this way?

Are the participants exploiting loopholes? Use gamification as another resource in your tool kit for engaging members and employees. It can take the form of a limited-time campaign or an open-ended program. Either way, an effective gamified application will help you build loyalty and achieve desired results.

More educational resources and contact information are available at www.nafcu.org/Affinion.

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