NATIONAL REPORT—Over the past five years, gamification has become yet another buzzword, with more and more companies adding gaming techniques to loyalty and marketing programs with varying degrees of success. But, gamification is about much more than just creating a game, fostering competition or adding status tiers with badges or points.
“Gamification is the entire swath of principles, strategies and techniques that make games fun, interesting and addictive,” explained Todd Young, principal and creative director of Fiero Agency, which specializes in gamification. Fiero Agency has worked with clients such as Coca-Cola, TimeWarner and Paramount Pictures, as well as hospitality clients like MGM Resorts, Hyatt and Expedia. “It’s the understanding of those strategies, principles and techniques, and then extracting them from their native habitats of games and using them for the benefit of making other things that are non-gaming in nature better,” said Young. “It really is about creating those game-like outcomes which are more intrinsic, emotional, psychological outcomes that are positive toward environments.”
Young noted that hospitality was once at the forefront of gamification, with airlines and hotels being the first to develop loyalty programs and points redemption. “They were doing it before it became a buzzword that crept into our lexicon five or so years ago,” he pointed out. “They set a trend in the marketplace that has now extended to the local dry cleaner and coffee shop, and nearly every other business.”
Young noted that this is a problem for the hotel industry—and other industries. While points systems are at their core gamified—“the idea of a virtual currency keeping track of your behavior, incentivizing and motivating you to take extraordinary behaviors, whether that be to travel more than you planned to or patronize a certain place that you might not,” he said—those transactional programs are no longer a differentiator.
“They’re ubiquitous and, by all accounts, kind of stale for the people participating,” he said. “There are no surprises or perks.” Young noted that many brands and companies are also eroding the generosity of these programs, making it more difficult to achieve tiers and adding qualifiers.
“The idea of motivation in hospitality has always been extrinsic motivations: If you do this, we will give you this. Gamification has tended toward extrinsic motivational levers: points, badges, tokens—all those little things that pop up every time you do something,” he said. “What’s most important, and often overlooked because it’s a more intensive process, is intrinsic motivation: How do you actually change the way someone feels or thinks? How do we create an experience where they feel better about doing it, where someone feels one or more of these emotions so commonly tied to effective games—autonomy, mastery or purpose? If you can figure out a way to create little bursts of those emotions, then you’ve got much more cooperative and resilient customers than if you were just motivating them transactionally. You can be rewarding them transactionally for years but, if someone decides to up the ante and give a better transactional deal, they will leave you without a thought.”
Julie Hoffmann, executive director digital/consumer experience of MGM Resorts International, agreed with the premise that hospitality companies need to elicit positive emotional responses from guests. “Travel is a highly emotive experience. It’s one of the few activities someone will engage in and carry the memories of those moments for a lifetime,” she said. “Emotional connections are critical to forming long-term bonds that withstand the test of time. When this connection is in place, relationships can move forward with a strong and supported base.”
Hoffmann noted that brands that build mutual trust with guests over time gain their loyalty. “Building this emotional connection is key for us to meet their needs and have open dialogue for how to evolve together in partnership. We are building incredible memories that engage, entertain and inspire. It’s challenging to inspire someone if you haven’t earned hearts and minds in the process,” she said.
“Above all else, if your issues are not resolved, you lose trust over time that the brand will make it good and loyalty wanes. We’ve learned how to minimize these buzz kills in travel, and are actively developing programs, processes and technology to take connections to new levels,” she said.
These days, there are many hotel brands that are upping the ante on the emotional value of their loyalty and marketing programs. Marriott Global Content Studio’s latest Snapchat program enlisted influencers on the platform to go to Marriott Hotels & Resorts properties and document their journeys. Destinations were chosen by having their followers vote on them, both increasing engagement on social media and giving followers agency in the process, which could increase their involvement in the overall campaign.
Likewise, two brands that recently revamped their loyalty programs include Red Lion Hotels Corporation and Kimpton Hotels & Restaurants. Red Lion kept some transactional perks—like a free stay every seven stays—with its new Hello Rewards program, but it is focused more on personalized perks and surprises aimed at appealing to the instant gratification associated with the Millennial generation. Kimpton’s new program, Kimpton Karma Rewards, also gives guests a free night after seven stays (or 20 eligible nights, whichever comes first). However, the brand’s formula also integrates engagement—like booking direct and social media interactions to help guests move up in tiers—and a custom-built customer relationship management (CRM) system to help personalize rewards. (While Kimpton was recently acquired by IHG, no plans for immediate changes have been announced, and both IHG and Kimpton are retaining separate loyalty programs for the time being.)
Young pointed to Hyatt’s recently announced new benefits as well. As of March 1, Hyatt Gold Passport members who achieve Diamond status can extend their Diamond in-hotel benefits to family or friends when they transfer a free night stay using Hyatt Gold Passport points, making their loved one a Guest of Honor. Other new rewards include two complimentary United Club one-time passes annually and receiving premium WiFi access. (Platinum members also receive WiFi access.) “They are focusing less on transactional and more on intrinsic: your treatment and perks, extending to friends and family, trying to focus more on your emotional and psychological benefits,” said Young, noting that extending to friends and family is a good way to create new loyalty club members.
Jeff Zidell, SVP of Hyatt Gold Passport, agreed. “Traditionally, many brands thought about transactional vs. emotional benefits, but the Guest of Honor program isn’t really about that,” he said. “It’s just an extension of what we do anyway, and it broadens that definition of hospitality. It engenders a certain kind of respect and emotional attachment to the brand.”
With Hyatt recently offering free WiFi to all guests, providing premium WiFi to members only made sense, and, said Zidell, the program with United Club “is a way to take care of guests even when they’re not staying with us… We’ve done a lot of listening over the years, and we now have a broader definition of hospitality.” HB