Gamification is about using the principles of games to get people interested in your business, products and services, but banking has been slow on the uptake. Matthew Jackson, Wei Ke and Alex Graham from global consultancy firm Simon-Kucher & Partners explain how it works
While every bank has differing objectives and circumstances, one universal constant is that every bank would love their customers to increase their relationship with them. They want them to buy new products (so a higher revenue per customer) and use existing products more (so higher profitability per customer).
One simple way to get customers to do what you want, of course, is to “pay” them. Higher savings rates, lower loan rates or generous rewards schemes. But these of course become unprofitable, and everyone is already playing this game to a greater or lesser extent.
If only there was another option – one that costs little but has a powerful effect on customer behaviour. Does this option exist? The good news is – it does. And the even better news? Virtually no one is doing it yet. It’s called “gamification”.
What is gamification?
Gamification isn’t about turning your website into Call of Duty or Space Invaders, but it is about applying the insights and psychology from games to try to achieve some of the enthusiasm, perhaps even obsessiveness, that the best ones generate in their users.
A good place to start is a definition by one of the world-leading experts, Gabe Zicherman, CEO at Gamification.com. In his influential handbook entitled ‘Gamification by Design’, Zichermann describes it as the process of applying ‘game-thinking and game mechanics to engage users and solve problems’.
Note that gamification is not the same as having ‘games’ – so having a section on your website where kids can play ‘Super Cash Bros’ is not gamification. It is simply having a game!
Read the complete article on Mortgage Finance Gazette.