Gamification can boost engagement and loyalty, but when rewards are poorly designed, they can undermine motivation and turn users off instead.
Gamification is one of those shiny objects that periodically captures companies’ attention — a tactic that promises to boost engagement and revenue metrics. After all, everyone else seems to be doing it, so why not your company, too?
At its core, gamification means applying game design elements in non-game contexts to tap into human motivation — boosting engagement and participation over time. In marketing, that can translate into higher revenue, stronger loyalty and longer customer lifetime value.
The danger of doing too much
Many marketers advocate for the tactic. Fellow MarTech contributor Greg Heist argues it’s worth considering — and I agree — but it comes with pitfalls.
Gamification has many moving parts, from points, badges and leaderboards (PBLs) to activity loops and rewards. The danger lies in trying to implement everything at once, making it hard to isolate what’s actually working. When results blur, stakeholder confidence fades. Throwing spaghetti at the wall might show what sticks, but it usually just makes a mess.
Understanding how to reinforce desired behavior is crucial — but motivation is tricky. People act for different reasons. Extrinsic motivation drives behavior through tangible rewards, such as cash or gift cards, while intrinsic motivation stems from a desire to contribute or do good simply because it feels right.
When rewards miss the mark
The danger comes when those motivations are mismatched. Offering an external reward for an intrinsically motivated action can cheapen the intent and reduce genuine engagement.
At one of my previous workplaces, a self-serve snack kiosk ran on the honor system. A sign once offered a $ 5 credit to anyone who reported a thief. The idea was to encourage honesty — but instead, it made people uncomfortable. Reporting a coworker for five dollars felt awkward and even insulting, likely discouraging the very behavior the company hoped to promote.
Rewards operate on a schedule. A fixed schedule can encourage people to repeat a simple behavior, but its appeal fades quickly. A variable schedule — like the unpredictability of slot machines — adds intrigue but can leave people feeling manipulated.
Another pitfall is combining rewards with other gamification elements such as PBLs (points, badges, and leaderboards). Leaderboards help participants see where they stand and can inspire higher performance, but they can also discourage those who feel too far behind to catch up. These elements can work together effectively, but only with careful balance.
Shiny tactics need thoughtful execution
The principles of gamification hold promise, but success requires understanding the underlying theory, setting the right metrics, and refining tactics over time. Shiny things — like gamification — demand thoughtful attention.
My understanding of gamification goes back to Kevin Warbach’s Coursera course on the topic, which offers valuable insight into both its opportunities and challenges.
The post Gamification has promise and pitfalls appeared first on MarTech.
About the author
Steve Petersen is a member of Wyndham Hotels & Resorts’ Marketing Technology Solutions Team. He has also held martech roles in the B2B SaaS and higher education sectors. Petersen earned a Master of Information Management from the University of Maryland and a Bachelor of Arts in International Relations from Brigham Young University. Petersen represents his own views, not those of his current or former employers.
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