Introduction Gamification is the application of game-design elements

Introduction

Digital
Revolution is the move from mechanical and simple electronic
innovation to advanced software & hardware which started from the late
1950s with the appropriation and multiplication of computerized PCs and
computerized record keeping. Digital world alludes to the far reaching
developments achieved by advanced figuring and correspondence innovation amid
the latter half of 20th century. Gamification is the
application of game-design elements and diversion standards in non-game
contexts. A gathering of research on gamification demonstrates that it has
positive effects on individuals. Gamification is the use of game elements and
game thinking in non-game environments to increase target behavior and
engagement.

             The market growth of gamification is expected
to reach 5,500 billion in 2018. The biggest market is expected to be the North
America, followed by Europe. According to TalentLMS survey, almost 80%
of the learners say that they would be more productive if their
university/institution or work was more game-like.

The
increasing popularity of games and the use of it in a business context isn’t at
all surprising. It’s been long since video games were only played by kids. For
many adults, gaming is an important leisure activity. The global games market
has grown to an astonishing 70 billion USD where console games still make up
the biggest part of the games market (43%).

 

About Gamification

Applying
the mechanics of gaming to non-game activities to change people’s behavior. Gamification
is an important and powerful new strategy for influencing and motivating groups
of people. The business community just started to realize the power it has to
improve cus­tomer engagement, build loyalty, and incent employees and partners
to perform at high levels. And the concept has the potential to solve a variety
of problems outside the business world as well, in areas such as:


Health & Wellness: healthcare cost containment, obesity programs, smoking
cessation.


Education & Training: e-learning, corporate and vocational training, online
testing.


Public Policy & Government: education reform, climate change, welfare
reform.

 

Participation and Engagement

The
objective of gamification is to draw in individuals to take an interest &
engage them to participate, share and interact in some activity or community by
offering a compelling, dynamic, and sustained gamification experience which can
be utilized to accomplish a variety of business goals.

Game Mechanics & Game Dynamics

Game
mechanics are the different activities, practices, and control components that
are utilized to ‘gamify’ an activity. Game dynamics are the emergent behavior that arises
from gameplay, when the mechanics are put into use.

Table
1 states the intrinsic and extrinsic factors of gamification. Broadly speaking,
people divide motivation into two components – intrinsic and extrinsic. Intrinsic
motivation is an innate drive to do something which encourages individual to
engage in an activity. Extrinsic motivation pushes you to do something because
of an external reward, status or competition.

Game mechanics include

Game dynamics include

Points

Reward

Levels

Status

Challenges

Achievement

Virtual Goods

Self-expression

Leaderboards

Competition

Gifts & charity

Altruism

Table
1: Intrinsic & Extrinsic factors of Gamification

 

Use of Game Dynamics & Game
Mechanics to Influence Behavior:

 

Challenges, Trophies, Badges and
Achievements- Challenges give individuals missions to
finish and after that reward them for doing so. Challenges give individuals
objectives and the having a feeling that they’re moving in the direction of
something. The general approach is to design challenges in view of activities
that you’re following, and reward your clients for achieving turning points
with trophies, badges and accomplishments. Trophies, badges, ribbons, etc. are
the visible recognition of having reached new levels or completed challenges.
One of the keys to making levels and difficulties viable is giving a discussion
to them to flaunt their accomplishments, like a trophy case or client profile
page that shows their badges.

Leaderboards-
Most of the successful games ever created have wisely implemented a “high-score
table”. They bring yearning, “notoriety,” and your name in lights.
They also indicate individuals ranking as compared with other competitors.

Competitions-
Rivalries empower your clients to move each other to get the high score at some
action. Once everybody has done the action, the client with the most elevated
score wins a reward while every one of the failures get a consolation award.  

Rewards-
Human beings are motivated by receiving rewards. A reward, substantial or
elusive, is exhibited after the event of an activity with the aim to make the
conduct happen once more. Getting virtual merchandise, leveling up, and
completing achievements also satisfy this desire.

Status-
People generally have a need for the esteem and respect of others, for status,
recognition, fame, prestige, popularity and attention.        

Achievement-
A few people are motivated by a need to accomplish, to fulfill something
troublesome through delayed and rehashed endeavors, to work towards objectives,
and to win. The most satisfying reward is the recognition of their achieve­ments.

Self-Expression-
Many individuals want and need opportunities to express their self-rule and
creativity, to stamp themselves as having interesting identities from everyone
around them. Utilizing virtual products is a typical path for players to make
their own particular personality, regardless of whether they are earned through
prizes, received as gifts, or purchased straightforwardly with genuine money. A
persons avatar can frequently fill in as a rich point of convergence for
expression, and a few people update their Facebook profile picture more than
once a day.

Competition-
People can also be motivated by competition. It has been demonstrated that
higher levels of performance can be achieved when a competitive environment is
set up and the winner is rewarded.

User Engagement on YouTube

YouTube
is an American video sharing website, the service was created by Chad Hurley, Steve Chen,
and Jawed Karim in February 2005.  Google bought
the site in November 2006 for US$1.65 billion, YouTube now operates as one
of Google’s subsidiaries. YouTube offers a wide variety of user
generated and corporate media videos. YouTube allows its users to view, upload,
rate, share, add to favorites, report and comment and subscribe to other users.
It offers a rich collection of videos. The content available is TV shows, media
clips, music videos, user created videos and many more. Registered users have
access to all content and properties whereas unregistered visitors can only
view the video content.

Registered
users can upload videos and share it on various social media platforms. When a
registered user uploads a video, other users are free to view it. Users can
view to particular video as well as can subscribe the creator-channel. Through
this study we will look into how gamification is used as a tool by YouTube
leading to user engagement and revenue generation.

YouTube
has various rewards based on subscription count

1.     
The
silver play button

2.     
The
gold play button

3.     
The
diamond play button

When
a particular creator-channel surpasses 100,000 subscribers that creator is
rewarded with ‘The Silver Play Button’. This reward is a flat trophy in a metal
casing with a YouTube play button symbol. Trophies are of different sizes and
eventually gets bigger with the number of subscribers. When a particular
creator-channel surpasses 1,000,000 subscribers then they are rewarded with
‘The Gold Play Button’. Similarly, when a particular creator-channel surpasses
10,000,000 subscribers then they are rewarded with ‘The Diamond Play Button’.
This tiers of trophies are dependent on the subscriptions the particular
channel has.

This
activity of gamification creates interest among users to achieve the upper
level awards. Users are encouraged to generate more videos and are attracted to
achieve more rewards. This is the gamification tool used by YouTube to attract
more registered users and developing more video content. Research shows that
there are more than 400 hours of content uploaded to YouTube each minute, and 1
billion hours of content are watched on YouTube every day. This shows the
increasing interest of users towards YouTube where gamification is used as a
tool for engagement.

YouTube
earns revenue from Google AdSense, a software which tracks ads according to
site content and visitors. YouTube makes money through sponsored
advertisements. Advertisements are played before videos as well as in-between
videos such that the revenues are generated according to the advertise viewers
and clicks. Whenever any user views any video, several ads appear on screen,
clicking to it generates revenues. This is how YouTube generates revenues and
business development. Part of the revenues are paid to video creator and rest
is for YouTube. For registered users it’s an engagement to create content and
upload on YouTube whereas for YouTube it’s a business to keep users viewing
various videos. This is how gamification keep engaging users on website and as
a tool helps in business development.

 

Use
of Gamification as a Tool for Achieving Business Goal by Zomato

Zomato started in
2008 as restaurant search and discovery service and has
now entered into online delivery and booking management segments as well. Initialized
and launched in India at first, it currently operates in 23 countries,
including Australia and United States. It acts as platform for users to find information and
reviews about restaurants, including images of menus which are generally not
available elsewhere.

Though Zomato was started with objective of
providing restaurant search service, its main object is to generate revenue and
deliver profit to its stakeholders. Zomato uses gamification on its website and
app as a tool for user engagement. And this has helped it generate profit in
most of the countries it operates in. Through this study we will look into how
what procedure Zomato follows to generate revenue and how gamification has
helped it in these regards.

To start with Zomato uses Leaderboard concept
on its App and Website. Once a user registers themselves on Zomato through
website or app they assigned a rank which indicates their position on the
leaderboard and also a badge. To improve their ranking user has to write review
and upload photos of the restaurant they visited. The users get 25 points for
each review. There are total 5 badges and 13 levels which a user can achieve
based on the points they have accumulated. The details of the same are
mentioned below in the table.

 

Level

Points

Foodie

1

0

2

25

3

100

Big
Foodie

4

250

5

500

6

800

7

1200

Super
Foodie

8

1600

9

2400

10

3200

11

4500

Connoisseur

12

6000

13

8000

 

In addition, this level there is also a badge
named expert. An expert is regarded as a person who knows area in their city
inside out. In order to get expert tag, user has to write 10 reviews and upload
50 photos for restaurants in a single neighborhood to become an expert.

Zomato also gives verified badges where in the
company manually verifies the reviewer and if the criteria are met, gives the
reviewer a verified badge. Zomato also arrange meetups generally referred as
‘Zomato Meetups’. These help user to have a social visibility, recognition,
popularity etc. In short it helps user to attain some status in society.

As a token of appreciation Zomato gives some of
the reviewers on its platform gift voucher which mostly restaurant discount
coupons.

It can be clearly seen that Zomato uses
gamification concepts like Leaderboards, Rewards, Achievement & Status for
user engagement.

User engagement in turn helps Zomato to achieve
its ultimate goal of revenue generation and earn profits. With ever increasing
number of users trying look out for places to dine in, order online and book in
advance, restaurant feel the need to get into some kind of partnership Zomato.
Zomato offers paid promotion service for the restaurant whose rates are decided
as per the negotiation between the parties. In addition to this, with healthy
number of users on its platform Zomato has also entered into food delivery
segment, wherein a restaurant partners with Zomato to get orders. Zomato
charges a commission on the order placed on pay per basis or percentage of
order value whichever is mentioned in the contract. Zomato Book is a CRM
software offered by Zomato which enables restaurant to have an online booking
service through Zomato website or mobile application. Zomato charges monthly
subscription rentals from partnered restaurant.

All in all, gamification used as a tool for
user engagement helps Zomato to generate revenue and earn profit through
selling advertisement, commissions on delivery order and service subscription
charges.

Conclusion: In this research case we applied the
mechanics of gaming to non-game activities to change people’s behavior.
Gamification is further divided into intrinsic and extrinsic factors where
intrinsic factor is an innate driver which encourages to engage oneself and
extrinsic factor pushes one to engage in an activity. A research study is made
on YouTube where gamification is used to engage registered users to upload more
videos and attract subscribers. The reward is based on the number of
subscribers for a particular channel. Secondly, another research study is made
on Zomato where users are given badges and features like leaderboard are used.
Users are encouraged to review restaurants, upload photos where points are
given to every activity. More number of points leading to more rewards.