These series of guest posts are written by the teams attending the Tetuan Valley Startup School 2012 Spring Edition. This post is from the holoholo team, formed by Jay Hum, Gonzalo Calle, and Joaquin Grech.
Games are everywhere and an integral part of all societies. Games and competition form part of the human psyche and serve to display the mastery of a skill.
Today, most people think of the PS3, xBox, and Wii when they hear the word games. The big three along with the numerous games that are published each year form part of a very popular and profitable industry. So profitable that, according to market researcher DFC Intelligence, the worldwide video game industry is set to reach $70.1 billion in 2015 due to the combined growth of console, portable, PC, and online video games (http://tinyurl.com/3m5nrkl).
Up until now, Gen X’ers like myself, who grew up playing video games with crappy 8-bit graphics, drove the growth of video games. In the future, Gen Y’ers, who live and breathe online will drive the gaming industry. Gen Y’ers have been playing video games since childhood, and have thus been engrossed in the language and metaphors of gaming for almost their whole lives. Gen Y’ers are not the least bit intimidated by technology and innovation. In fact, GenY’ers openly welcome technology and innovation because they cannot function in or even conceive of a world without it.
Given the incredible rise of games and its mass adoption in most cultures, it is no surprise that people are more open to game mechanics in other parts of their lives. As a result, a new term or ‘buzz word’ has been generating a lot of hype and attention these days – gamification.

So what is gamification? What does it mean to add gamification to a product and/or service? What impact will it have on how we interact with brands?
Gamification is applying and/or integrating game dynamics, thinking, and design techniques into non-game activities or context. Gamification is a powerful new strategy for influencing and motivating individuals or groups, and is used to change behavior. Many businesses are now realizing that gamification can incent employees and partners to perform at high levels, improve customer engagement, and build brand loyalty.
Airlines have been playing this game for quite awhile with their frequent flyer programs. As people fly around the world, they earn points (e.g. 1.5 points for every mile flown), can level up (e.g move from gold to elite status member), earn rewards (e.g. free upgrade to first class) by completing challenges (e.g. fly three return flights in three months), and redeem points for something of value (e.g. free flight). Now tell me if you’re heard this one before: “I just flew [airline x] and the service was shit, but I have to fly with them again because I’ve accrued tons of points and status with them!” Yeah, I thought so.
The ultimate goal with gamification is to drive engagement and participation. That is, to establish a dialog and engage customers as well as get them to participate, share, and interact in some activity or community. There are three characteristics of gamification that can help businesses increase customer engagement and participation: performance, achievement, and social interaction.
Performance includes:
- Real-time feedback – players can receive instant feedback on any action they take
- Transparency – players can always see exactly where they stand and where everyone else stands
- Goal-setting – whole purpose is to have a goal, strive for it, and hopefully achieve it; sub-goals can provide small wins
Achievement:
- Badges – serve to demonstrate skills, achievements and reputation, which is a big part of players’ identity
- Leveling up – levels indicate long-term achievement and status
- On-boarding – teaching players how to play from within the game itself
Social Interaction:
- Competition – games foster excellence and achievement through competition
- Teams – teams provide an opportunity to connect and bond with others; peer pressure of not wanting to let down your peers can amplify behavior
The language, metaphors, and concepts from games have much to offer businesses that want to engage customers and change their behavior. However, gamification is not without its critics. Real-life is very messy, complex, and non-linear. Some argue that gamification creates an expectation that real-life interactions follow simple mechanics and that disappointment occurs when they do not. Others dismiss gamification as a fad and that adding game dynamics will distract from actually creating high quality products and or services. We think gamification is here to stay and that it’s now a matter of finding the right balance between art and science of ramification. It’s not an easy task, but we are looking to add a game layer to product at holoholo. Stay tuned for future developments.