Using game theory in retailingIt may sound strange that Deloitte is advising retailers to start playing games, but it sees great opportunities for retailers to engage with consumers using elements of game theory (gamification). Shopping habits are changing and social media is playing a major role in this change. Shoppers are using channels other than the traditional to interact with brands and help them make informed purchasing decisions. Andre Hugo, director of Deloitte Digital says, "Consumers are attracted to fun content and will remain loyal if their shopping process is exciting and engaging. We believe it is time for retailers to start playing games to benefit from the digital retail wave set for our shores." "We believe the opportunity to do this lies in using gamification. By effectively merging mobile & digital technology with existing brick & mortar stores, retailers have a unique opportunity to span the virtual and the physical worlds to ensure their customers are given a shopping experience that encompasses the 'best of both worlds'." Converting users to playersGamification.org describes gamification as typically involving the application of game design thinking to non-game applications to make them more fun and engaging. Gamification has been called one of the most important trends in technology by several industry experts and can potentially be applied to most industries and a large percentage of business processes, creating a fun and engaging experience, converting users into players and ultimately consumers. "As internet infrastructure, downloads speeds and general access to the internet improves, shopping online is becoming easier for South African consumers. Although the shift has been subtle, taking into account the size of the South African population, more people are choosing to buy goods online. In a recent study by Arthur Goldstuck from World Wide Worx , it was highlighted that ecommerce is growing at around 30% per year in South Africa and the total internet economy, inclusive of infrastructure spend, contributes around 2% of GDP and is rising by 0.1 % per year or R59 billion," says Hugo. Digital factorsHe points out that there are three factors influencing the move from traditional retail shopping towards a more digital bias.
Different retail landscapeIn South Africa, the retail landscape is very different to that seen elsewhere in the world. While international patterns show that one in three white goods is purchased online. South Africans tend to do online price comparisons before physically going into a store to purchase the items. This behavior alone allows retailers to engage and entice consumers directly whilst they are in store. Successful activations of:
Innovation is key"We find consumers are being spoilt for choice. They are becoming more tech savvy and, there is a greater reliance on mobile phones and social media networks for everyday interactions. As many consumers prefer to communicate electronically, retailers must find innovative ways to engage directly with their target markets. Gamification provides the solution by delivering the required content in a fun, engaging way and encourages consumers to interact directly with a brand," says Hugo. He cites the Exclusive Books 'Stickers' programme, rolled out earlier this year, as a great example of gamification that helped build brand loyalty. The programme is a fun new way for customers to find and share their favourite products via their Facebook, Twitter or LinkedIn pages, earn discounts through their activity and team up with friends to trigger deals on books, e-books, games, DVDs and music. "As the Exclusive Books example shows, consumers are attracted to fun content and will remain loyal if their shopping process is exciting and engaging. We believe it is time for retailers to start playing games to benefit from the digital retail wave set for our shores," he concludes. For more on how to apply Gamification in business, look out for the Gamification chapter in the 2013 Deloitte Technology Trends to be released in the new year or review the recent Gamification debate on Deloitte resources http://bit.ly/M8sT8a. |