3. @mfauscette
Technology
Disrupters
Cost
take-‐out
(to
fund
innovation)
Talent
(Skills)
&/or
capacity
gap
IT
Challenging Times
Changing
Customer
Demands
Increasing
Competition
Challenging
Macro
Conditions
BUSINESS
Source: IDC C-Suite Barometer and IDC Research
3
INITIATIVES
2013
Market
Expansion
&
Customer
Experience
1
CONCERNS
2013
Acquire
new
customers
&
reduce
churn
1
INITIATIVES
2013
Find
New
Ways
to
Work
CONCERNS
2013
The
Growing
Productivity
Gap
1 1
4. @mfauscette
What is Gamification?
§ Business strategy
§ Application of game mechanics to drive or
change behavior
4
What behavior?
Importance to Business Strategy?
How Game Theory Can be Applied?
6. @mfauscette 6
Gamification
Behavior Modification
• Learning
• Loyalty
• Performance
• Engagement /
participation
• Productivity
• Collaboration
Game Mechanics
• Achievements
• Appointment Dynamics
• Behavioral Momentum
• Challenges
• Epic Meaning
• Infinite Game Play
• Levels
• Loss Aversion Dynamics
• Etc.
Reward
• Recognition
• Points
• Bonuses
• Information
• Access
• Etc.
Assess
• Performance
• Productivity
• Sales
• Collaboration
• Sentiment / Reputation
• Completion
7. @mfauscette
7
Game Mechanics
• Achievements
• Appointment Dynamics
• Behavioral Momentum
• Challenges
• Epic Meaning
• Infinite Game Play
• Levels
• Loss Aversion Dynamics
• Etc.
Game Techniques
• Activity Streams (link to existing or new ESN)
• Advancing game levels to keep players
interested and challenged
• Badges (public displays)
• Challenges / Quests
• Embedded Games
• Leaderboards
• Real-time Feedback
• Virtual Currency
13. @mfauscette
Building an ongoing customer relationship
13
Awareness
Discovery
Attraction
Interaction
Purchase
Use
Cultivation
Advocacy
(*1) The probability of selling to a new prospect is 5-20%
(*2) The probability of selling to an existing customer is close to 70%.
Source: IDC Research & Marketing Metrics (*1,2)
15. @mfauscette
Why?
15
Q. What specific initiatives are you planning to conduct using social software
for BUSINESS purposes in the next 12 months?
N=701, IDC Social Software Survey,, February 2013
0% 5% 10% 15% 20% 25% 30% 35% 40%
Internal gamification (particularly behavior analytics)
External Gamification (particularly behavior analytics)
Internal micro-blog
External micro-blog for marketing / customer service/
Crowdsourcing
External Discussion forum
"Innovation Management (more complex than
Prediction market
Internal Discussion forum
Geo-Social networking
"Ideasourcing (tools that are used to collect ideas/
File/Content sharing service
Blog/Wiki
Online office productivity
Peer feedback
Web broadcasting
Enterprise Social Network (including activity streams)
Web chat/voice/video over IP applications (including
Recruiting
Socialytics (analytic tools and applications used to
Application/Video Sharing
Public social network for marketing /customer service/
Social Learning
Online communities
16. @mfauscette
Business Benefit of Community
Acquire New Customers
• Know your customer
• Engage your customer
• Learn about your customer = Sales Intelligence
Design Better Products
• Idea sourcing
• Innovation
• Voice of customer
16
17. @mfauscette
Business Benefit of Community
Reduce Support Cost
• Peer-to-peer support
• Reduced support tickets
• Better self-service
Customer Intelligence Driven Marketing
• Customer data value chain
• Predictive as well as reactive
• On target – 1:1
17
18. @mfauscette
Customer Experience Examples
§ Community Engagement – Virtual Mobile
Network Provider
• Community Support Only
• Reward Model
• 75% of New Subscribers WoM
• Net Promoter Score = 73%
• Almost $0 Marketing Spend
18
19. @mfauscette
Customer Experience Examples
§ Community Engagement – Technology Vendor
• Build Community Support Model
• Encourage / reward: engaging with content, using
knowledge base, completing surveys, providing
product feedback, etc.
• Achievements and Missions
• Result:
§ 20% reduction in support tickets
§ 40% increase in forum and knowledge base use
§ 40% reduction in ticket response time by internal support
team
19
20. @mfauscette
Community Best Practices
§ Communities are not a “field of dreams”
§ Professional management
§ Analytics drive engagement
§ Gamification
§ Trust
§ Keep it Fresh
20
27. @mfauscette
Employee Experience Example
§ Large Consulting Organization
• Increase participation and use of online learning /
executive / professional development resources
• Used Points, Achievements and Missions (Guided
Learning Paths)
• Rewards for Interaction with Content – Recognition on
Public Profiles
• Leaderboard
• After 3 Months: Return Rated >46% Daily / 36% Weekly –
Active Users Unlocked 3 Achievements
• 6 Months: A User Unlocked Top Achievement
• Training Became “Addicting” and “Fun”
27
28. @mfauscette
Employee Experience Example
§ Large Automotive Manufacturer
• Train, Motivate and Support sales, service and parts personnel
• Increase Use of Training and Certification system
• Reward Exploration and Demonstration of Knowledge Gained in
the Community
• Tools: Tasks and Missions
§ Badges, Levels, Trophy Cases
§ Individual and Team Leaderboards
§ Trivia Challenges (retention)
§ Virtual Dream Garage
• Results
§ Day 1 = 100K Unique Hits
§ Week 5 - 2X activity
§ Correlation between increasing activity and KPI’s (unit volumes,
customer satisfaction, etc.)
28
29. @mfauscette
And Remember…
29
• Gamification is a Strategy not a Technology
• Technology Underpins Strategy (Flexible, Adaptable, Platform)
• Clearly Define Desired Behaviors
• Use Game Mechanics Targeted at Specific Behaviors
• Changing Culture and Process is Generally a Slow
Progression
• Gamification for It’s Own Sake = Failure
30. @mfauscette
Michael
Fausce,e
Group
Vice
President
So7ware
Business
Solu:ons
mfausce,e@idc.com
@mfausce,e
About
me:
www.mfausce,e.me
Thank You
Blog: www.mfauscette.com
IDC Social Business Blog
https://idc-insights-community.com/groups/it_agenda/
social-business
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