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Beware the risks: Businesses turning to ‘gamification’ to hook shoppers

McDonald's has successfuly used gamification to entice shoppers.

McDonald's has successfuly used gamification to entice shoppers. Photo: TND

More Australian businesses are gamifying their products to attract consumers, but while it can be fun, a leading expert warns there are risks to consider.

The global gamification market is set to almost triple in size over the next five years to more than $70 billion, with University of Technology Sydney Associate Professor Adrian Camilleri explaining that some of the world’s largest companies are going for the tactic.

That includes everything from McDonald’s popular Monopoly game to Duolingo’s language app, both of which are examples of how games can be built into the business models of companies.

“Businesses are always looking for new ways to engage and entice potential customers,” Camilleri said.

“Gamification has proven to be effective in the context of training and education, so it seems ripe for importing into a consumer context.”

But there are risks for consumers in the trend, with gamification often used as a way for businesses to collect extensive amounts of personal data, and the potential for “over engagement”.

That occurs when you end up consuming more of a particular good or service than you otherwise might because the gamification hooks you in, with Camilleri explaining that shoppers should stay “mindful of their budgets”.

“Gamification is designed to keep consumers engaged, which means giving more of their time and money to a business,” Camilleri said.

“All good things can be taken too far.

“While it’s fun to enjoy the excitement of earning points, climbing status levels, winning lottery offers and claiming rewards, it’s important to keep things in balance.”

Gamification trend

Businesses have been attaching games to their products for centuries to attract customers, including through carnivals or even things like the local pub’s meat raffle each week.

More recently the practice has industrialised and come to take on a much more digital face, with multinational companies using it as a tactic to increase social media engagement and revenue.

There are a variety of models – even the collectibles promotions at major supermarkets can be seen as an attempt by businesses to attach a collection game to our weekly grocery shop.

Fast food businesses utilise the practice too, perhaps none more successfully than Maccas.

A 2020 study showed McDonald’s Australia drove 2.5 million downloads of its phone app and scanned 2.5 million prize tickets during its annual Monopoly promotion, with $50 million in prizes.

The promotion drove an astronomical return for the fast food chain of $2.30 for every dollar spent.

Camilleri said businesses in many industries see gamification as a way to stand out from the crowd.

“In many industries, competition is fierce and so businesses are looking for ways to be different and entice new customers,” he said.

“By offering unique, fun, and rewarding experiences, businesses can differentiate themselves from competitors that are using more traditional promotions.”

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