Product Gamification: what is that thing (Part 1)

In simple terms, gamification is the implementation of gaming techniques into non-gaming processes. It might be informally divided into two parts:

1. External, to increase sales.
2. Internal, for employee’s development and motivation. In fact, also to increase sales.

History

For the first time, this term (in a sense close to contemporary understanding) was used by designer Nick Pelling. In the early 2000s, he offered to promote products using game mechanics, and in 2007, Bunchball shows all gamification advantages in the market.

Nick Pelling, designer

By 2010, the term “gamification” is becoming widely used, and game mechanics are getting right in the middle of the process. In the new decade, gamification is becoming more common, as evidenced by the increase in the number of gamification companies.

Children interacting with their smartphones from birth, teenagers making money by playing video games, and adults are stuck in World of Tanks. New generations are playing more, smartphone addiction is becoming an official disease. This will also entail changes in sales, customer retention, and education.

Yu-kai Chou and his Octalysis

Yu-kai Chou, a Taiwanese-American entrepreneur, an Author of Actionable Gamification. He was rated #1 among the Gamification Gurus Power 100 and three times won “Gamification Guru”. Chow has advised Fortune 500 companies: Lego, Sberbank, Volkswagen, Porsche, eBay, Huawei, Fidelity, AIG Japan, Ericsson, Cisco.

Okay, what is Octalysis then? I’ll try to explain its eight key principles, which were described in his book, in simple terms:

1. Meaning or self-determination. People are fond of doing something important and special. A kind of escapism, a way to put on a different face and become a racer, barista or hockey player, and preferably “so special”.
2. Accomplishment. People take pleasure from developing/the idea that they are developing. Due to evolution, we are used to take information as a high-value economic resource, so our brain encourages us for achievement.
3. Creativity and feedback. We solve a riddle, puzzle, or invent something new and have fun. It’s important to get positive feedback right away so that the brain remembers, after which the reward comes.
4. Ownership and possession. We do not want to lose what we perceive as property, because the value of the property is greater than the product itself. Property demonstrates the results of our labor or status. That’s why it’s important to have the best possible option.
5. Social involvement and influence. The textbook on social studies for grade 10 states that “a person is a biosocial being.” Civic education texts for grade 10 states that “a person is a biosocial being.” This is the fifth incentive — make the person compete and feel like he belongs to the community. We like this, otherwise, our genes would not have passed on.
6. Scarcity and Impatience. Forbidden fruit always attracts a person.
7. Curiosity and unpredictability. People wonder what will happen next. This is how cliffhangers in TV series, strings in literature, and any story that we meet throughout life are arranged.
8. Loss and avoidance. A sane person always seeks benefits, avoids bad outcomes (sometimes even too much).