Understanding the importance of gamification for Millennials

This article is part of the CommerceLab Reference Library, a set of online business tools that provide introductory and background information to help educate those new to the areas we cover. 

I’ve heard of Gamification, but what is it?

Gamification is a relatively new term. It was coined in the early 2000s but has reached particular notoriety over the past few years. The term has quickly become an important business strategy that is gaining steam in many industries. It’s one of the most talked-about strategies, and many predict that it will be a widely used strategy within the next five years.

Gamification uses video game design techniques in non-gaming experiences with the overall goal of improving user engagement and driving user behaviour. It can be used in a variety of ways to enhance user engagement on multiple platforms and is being integrated into business and marketing campaigns to captivate users that have grown weary of more traditional marketing tactics and messaging.

Why Do Millennials Respond Well to Gamification?

Gamification is a particularly effective technique to target the millennial age group (15-34) that has grown up with video games. Millennials are also referred to as Generation Y, and were born between the early 1980s and early 2000s. They have grown up in an era where gaming has become one of the biggest entertainment industries in the world.

Gaming is no longer just a pastime for kids; it’s a way of life for teenagers and adults alike. This is why gamification aimed at millennials has created an opportunity for businesses to engage users in new ways.

Here are some reasons why gamification is an effective strategy for non-gaming ventures:

• The average gamer today is well into his or her mid-30s.
• Most homes in North Americ have some form of video game system.
• Most people who own a mobile phones play games on their phones or mobile devices.
• Gaming is available on almost any platform: consoles, computers, phones, tablets.

Since the millennial generation has grown up in an age of digital technology, media, and communications, its members are more likely to be receptive to marketing and business strategies through gamification. This point is easily proven by the level of engagement the average gamer displays when playing his or her favourite game.

Why use gamification as a business strategy?

Gamification, especially when targeted at millennials, is beneficial in many ways. In addition to those listed above, gamification can be used to: 

• Improve user engagement and help companies be present in the mind of their customers.
• Collect vital data about customers and customize marketing messages based on this information.
• Improve virality and establish customer loyalty. Assist in building relationships with customers by creating a sense of community.
• Identify areas of gaming that are applicable in other contexts.
• Improve the marketing budget’s return on investment. Improve learning, enhance the education experience, and improve educational software.
• Provide a fun way for users to engage with your brand.

Gamification for millennials is a business strategy that will only become more important as that generation ages and plays an increasingly fundamental role in the economy. Understanding how to engage this generation through gamification will be an essential part of your marketing strategy over the next decade.