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Game-Based Marketing: Inspire Customer Loyalty Through Rewards, Challenges, and Contests
Harness the power of games to create extraordinary customer engagement with Game-Based Marketing. Gamification is revolutionizing the web and mobile apps.Innovative startups like Foursquare and Swoopo, growth companies like Gilt and Groupon and established brands like United Airlines and Nike all the most powerful way to create and engage a vibrant community is with game mechanics. By leveraging points, levels, badges, challenges, rewards and leaderboards - these innovators are dramatically lowering their customer acquisition costs, increasing engagement and building sustainable, viral communities.Game-Based Marketing unlocks the design secrets of mega-successful games like Zynga's Farmville, World of Warcraft, Bejeweled and Project Runway to give you the power to create winning game-like experiences on your site/apps. Avoid obvious pitfalls and learn from the masters with key insights, such good leaderboards shouldn't feature the Top 10 players. Most games are played as an excuse to socialize, not to achieve. Status is worth 10x more than cash to most consumers. Badges are not but they are important. You don't need to offer real-world prizing to run a blockbuster sweepstakes. And learn even to architect a point system that works Designing the funware the basics of points, badges, levels, leaderboards and challenges Maximizing the value and impact of badges Future-proofing your design Challenging users without distraction Based on the groundbreaking work of game expert and successful entrepreneur Gabe Zichermann, Game-Based Marketing brings together the game mechanics expertise of a decade's worth of research. Driven equally by big companies, startups, 40-year-old men and tween girls, the world is becoming increasingly more fun.Are you ready to play?
288 pages, Kindle Edition
First published February 18, 2010
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233 people want to read
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March 30, 2010
I wrote an extended version of this review for VentureBeat. Check it out at http://venturebeat.com
Gabe Zichermann coined the term Funware to describe the use of video game mechanics in everyday, non-game applications. It was a big idea that has now become a rallying cry for the spread of video games beyond their traditional borders into industries that seem remotely related to games.
What Zichermann, chief executive of beamME and a 12-year game industry veteran, realized was that games motivate people to do things that they wouldn't ordinarily do. The book (subtitled "Inspire customer loyalty through rewards challenges and contests") debuts this week and is a must read for marketers.
Funware is an intuitive concept. If you turn work into game, people willingly do it. If you make a tedious school assignment into a game-like competition, kids will become engaged with it. If you add a rewards-based loyalty program to your product, people will choose it over rivals. The time has come to "game-ify" all of the boring industries so that users will be motivated to use products and services because they want to, not because they have to. In fact, the authors argue that just about any task can be designed so that it can be more fun.
Over the past couple of years, the idea has gained steam. Venture capitalists such as Bing Gordon, former chief creative officer at Electronic Arts and Kleiner Perkins partner, believe that Funware has the potential to change all of advertising.
Game-based marketing is one of those things that has been around forever, but is only now getting recognized for what it is. Games have grabbed a bigger share of the entertainment market because they're sticky. They get people to come back over and over in a way that ordinary ads or marketing programs do not.
The book begins with a couple of telling anecdotes. One relates how one of Zichermann's former bosses in the ad industry just didn't understand the point of marketing to gamers. Another shows how the Jerry Seinfeld and Bill Gates commercials -- advertising the launch of Windows 7 -- failed horribly in winning over audiences. The authors say that the failure of these commercials harkens the death of traditional ads.
Brands are starting to catch on. The old way of reaching people through 30-second commercials isn't working anymore because people are skipping commercials with their digital video recorders. And a new generation of young people isn't watching TV at all. About 80 percent of these youths are playing video games, so they are naturally amenable to game-related motivations, such as competitive leaderboards, enhanced status in a community, or achievement points. They are a generation that looks at things like and wonder why it wasn't designed more like a game. One example: a leaderboard inspired Brazilians to boost their usage of the Orkut social network so their country could be the top of the leaderboard. As a result, Google's Orkut is the No. 1 social network in Brazil, not Facebook.
Some of this is basic psychology. If you put up a velvet rope and create a VIP area in a bar, people will want to get into it. They will be nice to the host and offer bigger tips if they can get the better service and status associated with being a VIP. The bar makes more money and can charge higher prices in the VIP area. The fundamental product, alcohol, is still the same. The marketing of the product is what changes, and that's what companies should realize, says Tim Chang, principal at Norwest Venture Partners.
Part of the problem with today's marketing is that marketers grew up thinking that brands should be inserted into games as commercial breaks. And game companies grew up thinking that their games were only for hardcore players. But now the growth of the mass market for games means those lines are blurring. Zichermann and Lindner say that the marketers should realize that the BRAND CAN BE THE GAME. In this melding, game experts can lend their expertise to the brand marketers, who in turn can help the game companies reach the non-gaming masses.
An example is the NBC trivia game, iCue. For years, NBC wanted to find out how to make money from its archive of videos. No one was watching them. Then NBC created a video trivia game where players had to guess a movie's details based on watching a clip. The result was a sticky application with 100,000 users per month.
This book rests on the shoulders of others that have come before it, such as Changing the Game by David Edery and Ethan Mollick, and Total Engagement by Bryon Reeves and J. Leighton Read. Both of those games argue the same case as Game-Based Marketing, though with different examples about how to turn work into fun.
One of the common examples that comes in all of the books is America's Army, the online combat game created by the U.S. Army as a recruiting tool to reach young people who grew up playing video games. America's Army costs very little to run, but it has had a huge impact in educating youths about the ways of the Army. Nike, Coca-Cola, Mary Kay Cosmetics and lots of other companies are sharing in the fun by designing Funware.
The fact that other books have come before this one suggests that thesis of the book is part of a larger movement. The ideas that were once considered radical are now becoming an accepted canon. Bunchball, founded by entrepreneur Rajat Paharia, is actively helping brands to game-ify their web sites.
But Zichermann and Linder point out out that some of the pioneering ideas behind Funware are, in fact, really old. They were embedded in the old Green Stamps program where you could earn stamps by making purchases at participating stores and then redeeming the stamps for merchandise. The germs of the Funware idea were also in the first frequent flyer program created by American Airlines in 1981. And they were part of addictive nature of slot machines in Las Vegas and sweepstakes contests as well.
That gets us to the good thing about this book. People who know games should read it because they'll learn about other industries which have already done what the game marketers want to achieve. And people who know brand marketing should read this for the new tips that the game companies have created to hook users. I must admit I got sleepy when I read so much about frequent flyer programs, but I also learned a lot that I didn't know.
Game makers may think that they have learned all of the ropes, but the research in the book shows they would do well to study the effects that rewards programs have on users. The Boy Scouts, for instance, figured out that giving out low-cost badges instead of big monetary awards was more than enough to keep young boys motivated.
Meanwhile, the creators of loyalty programs at institutions such as McDonalds would do well to modify their contests to be replayable, as most games are, to inspire long-term loyalty. Why can't the Internal Revenue Service create some incentives so that filling out your taxes is fun?
If the game makers and the brand experts get together, figure out how to create long-term brand loyalty through engagement, then everybody is going to make a pile of money.
Gabe Zichermann coined the term Funware to describe the use of video game mechanics in everyday, non-game applications. It was a big idea that has now become a rallying cry for the spread of video games beyond their traditional borders into industries that seem remotely related to games.
What Zichermann, chief executive of beamME and a 12-year game industry veteran, realized was that games motivate people to do things that they wouldn't ordinarily do. The book (subtitled "Inspire customer loyalty through rewards challenges and contests") debuts this week and is a must read for marketers.
Funware is an intuitive concept. If you turn work into game, people willingly do it. If you make a tedious school assignment into a game-like competition, kids will become engaged with it. If you add a rewards-based loyalty program to your product, people will choose it over rivals. The time has come to "game-ify" all of the boring industries so that users will be motivated to use products and services because they want to, not because they have to. In fact, the authors argue that just about any task can be designed so that it can be more fun.
Over the past couple of years, the idea has gained steam. Venture capitalists such as Bing Gordon, former chief creative officer at Electronic Arts and Kleiner Perkins partner, believe that Funware has the potential to change all of advertising.
Game-based marketing is one of those things that has been around forever, but is only now getting recognized for what it is. Games have grabbed a bigger share of the entertainment market because they're sticky. They get people to come back over and over in a way that ordinary ads or marketing programs do not.
The book begins with a couple of telling anecdotes. One relates how one of Zichermann's former bosses in the ad industry just didn't understand the point of marketing to gamers. Another shows how the Jerry Seinfeld and Bill Gates commercials -- advertising the launch of Windows 7 -- failed horribly in winning over audiences. The authors say that the failure of these commercials harkens the death of traditional ads.
Brands are starting to catch on. The old way of reaching people through 30-second commercials isn't working anymore because people are skipping commercials with their digital video recorders. And a new generation of young people isn't watching TV at all. About 80 percent of these youths are playing video games, so they are naturally amenable to game-related motivations, such as competitive leaderboards, enhanced status in a community, or achievement points. They are a generation that looks at things like and wonder why it wasn't designed more like a game. One example: a leaderboard inspired Brazilians to boost their usage of the Orkut social network so their country could be the top of the leaderboard. As a result, Google's Orkut is the No. 1 social network in Brazil, not Facebook.
Some of this is basic psychology. If you put up a velvet rope and create a VIP area in a bar, people will want to get into it. They will be nice to the host and offer bigger tips if they can get the better service and status associated with being a VIP. The bar makes more money and can charge higher prices in the VIP area. The fundamental product, alcohol, is still the same. The marketing of the product is what changes, and that's what companies should realize, says Tim Chang, principal at Norwest Venture Partners.
Part of the problem with today's marketing is that marketers grew up thinking that brands should be inserted into games as commercial breaks. And game companies grew up thinking that their games were only for hardcore players. But now the growth of the mass market for games means those lines are blurring. Zichermann and Lindner say that the marketers should realize that the BRAND CAN BE THE GAME. In this melding, game experts can lend their expertise to the brand marketers, who in turn can help the game companies reach the non-gaming masses.
An example is the NBC trivia game, iCue. For years, NBC wanted to find out how to make money from its archive of videos. No one was watching them. Then NBC created a video trivia game where players had to guess a movie's details based on watching a clip. The result was a sticky application with 100,000 users per month.
This book rests on the shoulders of others that have come before it, such as Changing the Game by David Edery and Ethan Mollick, and Total Engagement by Bryon Reeves and J. Leighton Read. Both of those games argue the same case as Game-Based Marketing, though with different examples about how to turn work into fun.
One of the common examples that comes in all of the books is America's Army, the online combat game created by the U.S. Army as a recruiting tool to reach young people who grew up playing video games. America's Army costs very little to run, but it has had a huge impact in educating youths about the ways of the Army. Nike, Coca-Cola, Mary Kay Cosmetics and lots of other companies are sharing in the fun by designing Funware.
The fact that other books have come before this one suggests that thesis of the book is part of a larger movement. The ideas that were once considered radical are now becoming an accepted canon. Bunchball, founded by entrepreneur Rajat Paharia, is actively helping brands to game-ify their web sites.
But Zichermann and Linder point out out that some of the pioneering ideas behind Funware are, in fact, really old. They were embedded in the old Green Stamps program where you could earn stamps by making purchases at participating stores and then redeeming the stamps for merchandise. The germs of the Funware idea were also in the first frequent flyer program created by American Airlines in 1981. And they were part of addictive nature of slot machines in Las Vegas and sweepstakes contests as well.
That gets us to the good thing about this book. People who know games should read it because they'll learn about other industries which have already done what the game marketers want to achieve. And people who know brand marketing should read this for the new tips that the game companies have created to hook users. I must admit I got sleepy when I read so much about frequent flyer programs, but I also learned a lot that I didn't know.
Game makers may think that they have learned all of the ropes, but the research in the book shows they would do well to study the effects that rewards programs have on users. The Boy Scouts, for instance, figured out that giving out low-cost badges instead of big monetary awards was more than enough to keep young boys motivated.
Meanwhile, the creators of loyalty programs at institutions such as McDonalds would do well to modify their contests to be replayable, as most games are, to inspire long-term loyalty. Why can't the Internal Revenue Service create some incentives so that filling out your taxes is fun?
If the game makers and the brand experts get together, figure out how to create long-term brand loyalty through engagement, then everybody is going to make a pile of money.
July 30, 2011
7/29/11 ** Interesting premise and definitely relevant for the target audience of business people, advertisers, & marketers. As an educator, I read the book in light of student engagement and planning possible incentives in a classroom management plan. Though useful, I do worry about the students who are at the bottom of the point scale or leaderboard. I'll have to balance insights from this book with insights from people like Alfie Kohn who talk about ways to increase intrinsic motivation.
3/30/11 ** I heard Zichermann interviewed on NPR this week while we were driving around Iowa. He talked about the system of incentives that he's developed: SAPS - status, ???, Power, & Stuff. He also talked about the way that games build on fun and recognition, rather than punitive consequences. I thought looking at the ideas in the book could positively influence ideas for classroom management.
3/30/11 ** I heard Zichermann interviewed on NPR this week while we were driving around Iowa. He talked about the system of incentives that he's developed: SAPS - status, ???, Power, & Stuff. He also talked about the way that games build on fun and recognition, rather than punitive consequences. I thought looking at the ideas in the book could positively influence ideas for classroom management.
March 23, 2010
As a retired small business owner I could have really used marketing ideas like these. They are clever, innovative and hit the mark. In my retirement, I am President of a non-profit organization and will be able to apply many of the concepts in our fund-raising and promotion plans. I am particularly interested in the tips on using games to generate buzz, increase communication and help get people involved.
As a psychologist, I am also intrigued by the author's points about competitiveness, operate condition and a general human desire for fun. All in all this is nice piece of work and well done. I highly recommend it. JMS
As a psychologist, I am also intrigued by the author's points about competitiveness, operate condition and a general human desire for fun. All in all this is nice piece of work and well done. I highly recommend it. JMS
March 7, 2010
Well, I'm biased because I wrote this book (with Joselin Linder), but I think it's a very insightful look at the games that people play every day - and how smart organizations have taken advantage of their power.
We analyze how the US Army, Chase and McDonald's have create (and harmed) communities through the power of challenges, points, rewards and leaderboards as part of a "Funware" theory.
We analyze how the US Army, Chase and McDonald's have create (and harmed) communities through the power of challenges, points, rewards and leaderboards as part of a "Funware" theory.
January 20, 2024
It delivers what it promises -- a systematic way of understanding game based interactions. What I needed was to learn about components of a game in order to build my own game, and I got that. IT also gives a good sketch of the characteristics of the type of people who play games (achievers, socializers, explorers, and killers.) All in all, this book is worth the while.
May 2, 2025
Favorite Excerpt:
One of the things marketing with games does very effectively is to combine play with some perhaps less playful—or more purpose-driven—activity. Through the very personal sense of accomplishment and self realization inherent in game-play, businesses that incorporate Funware into their marketing will find they get something that is greater than expected. (p.205)
One of the things marketing with games does very effectively is to combine play with some perhaps less playful—or more purpose-driven—activity. Through the very personal sense of accomplishment and self realization inherent in game-play, businesses that incorporate Funware into their marketing will find they get something that is greater than expected. (p.205)
January 2, 2014
Probably this book will be useful to my grandmother. If you have a smartphone or a credit card and you use planes to travel, more likely you know everything the author tries to surprise you with. Probably this book will be useful to my grand mom. If you have a smartphone, use plains to travel or have a credit card, more likely you know everything the author tries to surprise you with.
I was especially disappointed with the following phrase: “In fact, even though smart phones (such as the iPhone, BlackBerry and Android) and social networks like Facebook have rapidly become the dominant social memes of the moment...” I thought that nowadays everyone, especially a person writing about game-based marketing, knows that Android is an OS and Blackberry is a brand.
I was especially disappointed with the following phrase: “In fact, even though smart phones (such as the iPhone, BlackBerry and Android) and social networks like Facebook have rapidly become the dominant social memes of the moment...” I thought that nowadays everyone, especially a person writing about game-based marketing, knows that Android is an OS and Blackberry is a brand.
September 30, 2015
Having completed the two Gamification courses from Udemy (which I highly recommend) the book dud not bring too much new info. Secondly, the data in the book is quite outdated.
However, the principles and importance of using Gamification in business is more relevant than ever. Gabe writes in an easy, un - needy language which is easy to understand for everybody.
It would have been interesting with more success stories from companies that had implemented gamification.
The book has several examples of companies who missed opportunities, and explains why and what they could have done, which I found very useful.
If you study marketing, and never have had your hands in game-based marketing, you should, and thus book is a great introduction.
However, the principles and importance of using Gamification in business is more relevant than ever. Gabe writes in an easy, un - needy language which is easy to understand for everybody.
It would have been interesting with more success stories from companies that had implemented gamification.
The book has several examples of companies who missed opportunities, and explains why and what they could have done, which I found very useful.
If you study marketing, and never have had your hands in game-based marketing, you should, and thus book is a great introduction.
November 1, 2013
I really enjoyed learning about the concepts of game based marketing and I'm going to go back through the book now and decide whether any of the ideas can be used in my small business (which may be especially challenging since much of my audience is not really into social media). I am also aware of the situations where I am being "gamed" myself. I am a participant in a few games and I never really thought about it that way. I don't see a bad side to this so I don't feel taken advantage of but it is interesting how gamification can motivate us.
September 27, 2012
If you want a basic understanding of gamification then this book is alright. There's nothing in it that can't be found in the numerous articles online. The author uses the word "funware" frequently to describe gamification, which in itself is a much debated term, makes you cringe. If you really want to understand and appreciate the power of games, then I recommend you read Jane McGonigal's 'Reality Is Broken'
December 5, 2011
Muy buen libro introductorio a la temática, lo suficientemente profundo como para interiorizarse en esta tendencia. Si se logra sobrevivir al soporífero capítulo relacionado con los programas de fidelización de las líneas aéreas, encontrará una cantidad importante de casos reales complementados con sugerencias del autor de como podría haber profundizado el modelo en cada caso.
February 1, 2011
This book is a good overview of how game mechanics are being used in marketing. It looks at the history of game mechanics in marketing, as well as what could be used to improve current use of game mechanics.
July 28, 2011
Definitely a quick read. Topic was not mind-blowing, but given what I do for a living, that's not surprising. Great for someone who needs an intro to game mechanics and marketing to younger generations.
May 31, 2013
Lots of content, lots of good ideas. Not of lot of science proving the best ways to do things, but if you've read enough other resources on behavioral economics (like I have) you can tie everything together.
Want to read
March 31, 2010Dean Takahashi liked it...
June 4, 2011
This is a must-read for anyone who wants people to buy things from them.
October 24, 2010
great book, how people are naturally programed to compete and how brands can create incentives on this notion.
February 14, 2011
Using Gamification as a central experience to incentivize users to do the actions you want them to.
April 2, 2011
Very interesting perspective for the marketer
August 10, 2011
This is exactly what I am looking for as we build out new components of our fan-based service
July 7, 2011
Worth a read for the ideas it will spark, alone. On top of that, this book provides a good grounding in the fundamentals of game-based marketing.
November 13, 2011
Though most of the advice from this book was pretty obvious, I got some new ideas from it and enjoyed the read.
December 23, 2011
It would be 4, but the kindle edition is not too well edited.
February 15, 2016
5 stars = Yearly re-read
4 stars = Re-read eventually
3 stars = Very Good
2 stars = OK
1 stars = Pass on this one.
0 stars = Couldn't finish it.
4 stars = Re-read eventually
3 stars = Very Good
2 stars = OK
1 stars = Pass on this one.
0 stars = Couldn't finish it.
March 30, 2013
A should-read book on marketing tools for the knowledge worker, manager, executive, or entrepreneur.
May 5, 2013
Game changer for anyone marketing today, old marketing just doesn't work.
July 4, 2013
I'd highly recommend watching the movie Up in the Air before reading. A lot of emphasis is put on the frequent flyer system as an example.
Read
February 3, 2016So-so, not much new here to those already versed in gamification. For a newbie, though, this could provide a reasonable basis.
November 25, 2010
It's a good intro. More geared towards high-level executives (probably a 4-star for 'em).
October 29, 2016
A nice read, I am a big fan of Gabe's work.
Displaying 1 - 30 of 30 reviews