Table of Contents
Praise
Title Page
Copyright Page
Acknowledgements
Foreword
Epigraph
Introduction
CHAPTER 1 - The Argument for Loyalty
“Stickiness” Is Loyalty
Playing with Loyalty
The Future of Loyalty—Frequent Flyer Games
Communities of Influence: Flyertalk
Funware: Putting Fun into Everything
Chase “Goes Dutch”
The Value of Prizes
Game Mechanics
Don’t Hate the Player, Hate the Game
CHAPTER 2 - Passive Play
The Incidental Games We Play
Latte Leaders: Status and Levels
Black Cards and Red Carpets
Keeping Score
The Subway Scrum: Rules of Play
The Bar Brawl: Demonstrable Status
The Components of Funware
CHAPTER 3 - Social Networks and Leaderboards
Social Network Clutter
Marketing with Social Networks
Orkut: A Case Study in Leaderboard Effectiveness
Funware at Work: Facebook Friend Games
No News Isn’t Good News
Leaderboards in Business
The Jigsaw Example
Correctly Using Leaderboards
Points Proxy: Masking and Directing Behaviors
Wal-Mart and the Theory of Relativism
Leaderboard Levels
Leaderboards: The Top 10
CHAPTER 4 - Funware Mechanics: Points and Beyond
Making Points the Point
Point Mechanics and Branding
Virtual Economics
Virtual Currency
Real-World Value versus Virtual Value
Creating an Easy and Effective Virtual Economy
Badging Players
Newbie Badges
Building Levels
America’s Army
Defining and Meeting Goals
Bringing Players into the Game
Tracking Behavior
Meaningful Status Displays
CHAPTER 5 - Prizes and Games of Chance
The Ansari X PRIZE: The Power of Games to Change the World
Can’t Buy Me Love: Choosing Prizes
Games of Chance
Games of Chance and the Law
McDonald’s Monopoly Game: A Case Study
The Value of a Prize
Long-Term Motivation and Customer Loyalty
Gaming the System
Amazon Reviews: Community Policing at Its Finest
Using Sweepstakes to Fight Gaming
Virtual Points and Prizes
CHAPTER 6 - The Ultimate Funware: Frequent Flyer Programs
Frequent Flyer Programs Take Off
What Business Are Airlines In?
Designing the Frequent Flyer Massively Multiplayer Online Game
The Power of Points
Getting There without Points
Real-World Redemptions: Do They Matter?
The Solution Is Virtual Goods
But Does Redemption Matter?
Levels and Badges in FFPs
Throwing Your Weight Around
Benefits of Status
The Level Error of FFPs
Going Above and Beyond: The Boss Level
Challenges and Contests
United’s Team Challenge
Making It Work for You
CHAPTER 7 - Know Thy Player
Bartle’s Player Types
Achievers (•)
Socializers (♥)
Explorers (♠)
Killers (♣)
The Naïve Player
Competitiveness: The Most Important Motivation?
Closing the Gender Gap
Nike+: Early Adopter Advantage
Fahrvergnügen’s Failure
The Wrap-Up
CHAPTER 8 - The Future of Gamers: Generation G
A Generation Gap
What Makes Generation G Special?
The Trends
Smith & Tinker
The Gulf Is Real
The Effect of Games: Tetris, Team Building, and Tug of War
The Character of a Generation of Gamers
Conclusion: Successfully Marketing to Generation G
CHAPTER 9 - Motivating Sales with Funware: Getting Employees into the Game
Front Line and Top of Mind
Bitten by the Achievement Bug
Mary Kay: Generating Loyalty
Trust and Motivational Funware
Sales Teams and Customer Trust: Pep Boys
Making the Corporate Personal through Games
Funware at Work: Wells Fargo’s Stagecoach Island
Playing Together
CHAPTER 10 - Everyone Wins: Games in Your Business
Product Power
Advergames and In-Game Advertising
Pursuing, Engaging, and Rewarding Customers: The Business of Lifestyles
Arming Your Business
First Steps Are the Hardest
Do It for the Children
Funware on the Rise
REFERENCES
INDEX
Praise for Game-Based Marketing
“The power of games to affect consumer behavior is almost limitless—and examples of powerful social games are all around us. Game-Based Marketing is the first look at combining the power of games with the power of marketing to create an exciting new user paradigm: Funware. This is clearly the future.”
—Joel Brodie, CEO and Founder, Gamezebo.com
“Games are busting out of their traditional borders. No one knows that better than Gabe Zichermann who hit upon the insight early on that everybody, not just game makers, should use gamelike tricks to enthrall fans.”
—Dean Takahashi, Editor of VentureBeat
“If you think games have already taken over the living room, wait until you see what they can do to advertising. Co-writers Zichermann and Linder have put forth cutting edge concepts about the power of game design in nongaming contexts. And you get five Achievement points if you read this endorsement.”
—Bing Gordon, Venture Partner: KPCB and Former CCO of Electronic Arts
“The rise of the multibillion dollar gaming industry demonstrates the appeal that compelling, interactive content has over other more passive forms of marketing. Zichermann, a [visionary] in the field of gaming and the application of gaming techniques, and co-writer Linder set forth in writing for the first time an actionable treatise on how smart brands can leverage what the gaming industry has already learned to reach and sell to new audiences. If you haven’t applied games to marketing, advertising, or brand management, you’ll want to get and study this book—or it could be game over for you.”
—Jonathan Epstein, CEO, In-Game Ad Firm DoubleFusion, and Founding CEO, Gamespot.com
“Crowdsourcing today has barely scratched the surface of what applied gaming mechanics can do for companies looking to complete work ranging from logos to complex software systems to automobiles in a meritocracy. Along this very same vein, individuals competing or collaborating on these bodies of work align or better define the company’s brand and identity and carry the marketing message while participating. Mr. Zichermann and Ms. Linder detail how the future of marketing depends on this level of engagement and the rise of Funware in today’s information space.”
—Mike Martoccia, Futurist and Crowdsourcing Expert, @mmartoccia
“My 13-year-old cousin recently said ‘If I can’t get an achievement for that, I’m not doing it.’ Game-Based Marketing clearly shows how to leverage this emerging generation’s hunger for games in every sphere of life.”
—Alan Yu, ngmoco
Copyright © 2010 by Jargonlab, Inc. and Joselin Linder. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Zichermann, Gabe, 1974-
Game-based marketing: inspire customer loyalty through rewards, challenges, and contests/ Gabe Zichermann & Joselin Linder. p. cm.
Includes bibliographical references.
eISBN : 978-0-470-61869-1
1. Customer loyalty programs. 2. Customer loyalty. 3. Marketing. I. Linder, Joselin, 1975- II. Title.
HF 5415.525.Z53 2010 658.8’12—dc222009044774
ACKNOWLEDGMENTS
Many thanks to all those who agreed to be interviewed for this book, on and off the record. Thanks to our agent, Molly Lyons, and everyone at Delbourgo and Associates. Also thanks to the editorial team at John Wiley & Sons, Inc., for their energy and commitment to getting this project to market. Special thanks to Dan Ambrosio, Christine Moore, and Ashley Allison.
Gabe would like to thank the following: Dean Takahashi, editor of VentureBeat, for his enthusiasm and evangelism for the Funware concept; his mother, father, and David for their unflinching support throughout the years; Mary and Vera for their love and affection; his sister, Sandra Zichermann, for her inspirational commitment to her intellectual pursuits; and Jason, the only one who could have handled video game, frequent flyer, and television widowerhood with as much grace, brilliance, and humor all these years.
Joselin would like to thank Wendy Bassin, Tim Deman, Marni Fechter, Karen Kaplan, Caroline Palmer, Kevin Rear-don, and Sam Richie. Special thanks to Chris Tiné and San Tong. Thanks to Jim Shulman for his extensive knowledge, among other things, of the Boy Scouts. Also thanks to Jackie, Gram, Hilary, Brian, and the kids for their unending support; to her mother, Rhoda Linder, for her unparalleled PR skills among family and friends; and her father, William Linder, for illustrating fine business savvy in his life. Finally, thank you to Aaron for being the best teamate a girl could have.
FOREWORD
What would Don Draper say about Funware?
In the 30 or so years that I’ve been in the advertising industry, I’ve seen just about every kind of games-meet-marketing combination. As the former chairman & CEO of Universal McCann, I helped launch media for Microsoft’s Xbox and Halo Franchises, among countless other brands. Today, as CEO of NYC-based Rebel Digital, I help brilliant entrepreneurs start and scale their Internet businesses, an ever-increasing number of which are baking games into their strategy.
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