Gamification of Price
As consumers a) realise their increasing ability to monitor prices and promotions in real-time b) sustain acute price sensitivity across all their purchasing portfolios and c) love scoring great deals, brands are beginning to use gamification – the application of game design mechanics in arenas outside of gaming – to increase consumer engagement.
This is a world where prices are no longer fixed but are to be tactically negotiated, artfully manipulated; they can even become the subject of anticipative bets from which the best deal or discount is awarded only to those who earn it through clever or diligent play.
The Price Gamification trend carries fascinating implications for the whole business of distribution and exchange and for how consumers will pursue and define value / how brands will maximise the value of pre-sale conversations with customers.
Whereas bargain-hunting may have been perceived as embarrassing in times gone by, there is no longer any shame in it – being a savvy shopper is positively in vogue. The concept of social capital impacts the world of discounts, as consumers share their finds with friends. 59% (according to nVision Research) share discount vouchers online with friends and family (e.g. Facebook), and of them, 36% say it benefits friends/family and 17% say it’s fun.
Name Your Own Price: examples
Gap Namemyprice.com. For a limited period, Gap launched a website featuring a few select items for which consumers could nominate a price. The retailer would then accept the offer or make another which the consumer could choose to accept or refuse until a final offer was agreed.
The BandCamp website provides a space where musicians can stream their albums, EPs and tracks. Musicians have the option to allow consumers to nominate their own price to purchase their music, if they so wish, after listening to the freely available streams. The site claims that ‘On name-your-price albums, fans pay an average of 50% more than whatever you set as your minimum’.
NexTag is a price comparison site which promises to ‘make it surprisingly easy for you to find everything from tech to travel to tiki torches, all at the price, place and moment that’s right for you’. The site invites consumers to browse, review, share and compare before selecting their favoured deal; for those wanting to delay purchase until the price reaches a certain level, NexTag’s alert service will send an email the moment an item falls within a desired range.
Time, location and social sensitive social discounts
Some brands are using social networks to incorporate an element of play within their pricing strategies and to enable consumers to feel they are themselves manipulating deals and being rewarded for their engagement.
Discounts are earned by tweeting, making a status update or checking-in (sharing one’s location). Prices also flex according to how many users are connecting with the offer – the more people who play, the better the promotion. And as consumers are increasingly connecting to their networks on-the-go, will the opportunity to play for the price you want to pay soon accompany all purchasing occasions?
Innocent launched a Twitter campaign in the UK where prices fell as more and more consumers tweeted about the promotion. Uniqlo has also used Twitter to launch a similar campaign.
Gamification : the new loyalty scheme
While points-based loyalty schemes have existed for some time, the Gamification of Price trend has the potential to truly revitalise loyalty programmes by allowing consumers to win rewards through their willingness to play as well as by rendering perhaps otherwise dull loyalty points-gathering more interactive and engaging. Fun, unique and individual challenges such as those created using the SCVNGR platform, or sophisticated points systems such as those provided by the Shopkick application, create strong incentives for continued engagement.
Scvngr (pronounced Scavenger) is a US location-based application which enables brands to create challenges which, if successfully met by customers, earn them points to be used for redeemable rewards, including price discounts. The app allows brands to create closer interactions with customers by layering elements of play, challenge and reward over the customer experience. Buffalo Wild Wings (BWW), Neiman Marcus, Coca-Cola and Topshop UK and USA have used the platform to create challenges – such as taking a photo of your favourite outfit while in-store – that earn exclusive discounts for those who participate.
The basic fundamental appeal of gaming and play will underpin consumers’ ongoing willingness to participate in shopping challenges for rewards both tangible and psychological. It is for this reason that we posit here that more and more promotions will have to be earned through play to be redeemed. We will increasingly have to play to pay our preferred price and therefore much greater value will be attached to the act of play in general.