What is Gamification Marketing?

Customer retention is king for every business. According to Gartner Group, 80% of your company’s future revenue will come from just 20% of your existing customers. Creative marketing strategies help businesses bring customer engagement. As a result of increased customer engagement, customer retention increases and business revenue grows. Gamification marketing is a very popular and effective strategy between businesses to retain customers and reduce churn.

Gamification is the process of integrating game processes into a system, product, or service in order to motivate users to achieve a task. In business, gamification marketing is simply achieved by making business activities fun by turning them into a game. In 2014 Gartner redefined gamification as “the use of game mechanics and experience design to digitally engage and motivate people to achieve their goals”.

Why Is Gamification Marketing So Important?

Games bring excitement around a brand. Implementing game mechanics to the routine processes of your business makes it fun for customers to use it more frequently. Therefore, gamification mechanics bring more engagement and more revenue to your business.

One of the most important pillars of gamification marketing is the rewarding system. With the excitement built around an earned reward, users are 7 times more likely to value and use said reward over a generic handout.

On the other hand, compared to video advertisements, games have been recorded to have a 181% higher click-through rate to proceeding web pages along with customers being 2.2 times more likely to enter their details at the end of a game. This means that brands can promote themselves through Gamification Marketing and achieve set objectives, knowing full well that they’ll have trackable analytics.

Why Choose Gamification Marketing?

There are three main reasons your business should implement gamification marketing:

  • It guarantees on the Return On Investment (ROI)
  • Increase customer retention
  • Reduce the churn rate

Motivator Factors in Gamification Marketing

There are two major motivator factors that encourage customers be more active in your system. These motivators are the essential elements you should recognize and address in your gamification marketin.

1. Intrinsic Motivators

An Intrinsic Motivator is a personal desire to keep playing, mastering, exploring, or otherwise, enjoying the world of a game. Intrinsic Motivators are consequences of experimenting more with the game system. They are usually quiet delights, secret joys, and urges to simply embrace the trauma of the game.

Players following Intrinsic Motivators are often culturally engaged with a game, feeling like they are participating in something worthwhile and uplifting. Often this is closely twinned with creative urges, and so Intrinsically Motivated players could be described as enchanted rather than retained. They are also the most likely kind of player to evangelize a marketing story.

2. Extrinsic Motivators

An Extrinsic Motivator is any possible known outcome that drives gameplay. Extrinsic Motivators might be internal or external to the game (called rewards respectively) such as a particular power-up or cash. Extrinsic Motivators can be strong drivers of play but at the expense of creative problem-solving. Players in search of Extrinsic Motivators will often engage in rote gameplay such as grinding, and so Extrinsic Motivators usually lead to retention rather than enchantment.


It’s important to create a gamification system that strikes a balance between the two forms of motivators. What ingrains both forms of motivators into a gamified campaign is the use of game mechanics. Therefore, to get the most out of your gamification system, it’s important for you to understand the key categories of gamification and apply them to your business.

Formaloo helps you build gamification in your online business in order to bring customer engagement, increase customer retention, and reduce churn. To learn more, head to formaloo.com.

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