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Gamification in Marketing to Increase Customer Retention

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0517_MSMS23 Thesis_Yu Tai (Tony) Chen[21].pdf

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Author(s)
Chen, Yu Tai (Tony)
Advisor(s)
Zhang, Juanjuan
Date Issued
June 2023
Publisher
Massachusetts Institute of Technology
Abstract
Gamification has emerged as a powerful marketing tool over the past decade, with its ability to boost user engagement, retention, and brand loyalty. This thesis examines the application of gamification in marketing through the lens of game development frameworks and the 4Ps of marketing. By analyzing case studies of Nike SNKRS and Duolingo, this thesis sheds light on best practices, such as the incorporation of gaming mechanics into non-gaming scenarios, adapting to gaming trends, and aligning gamification strategies with company goals. Although both cases demonstrate the potential benefits of gamification, they also reveal challenges, such as consumer desensitization, ethical concerns, and the risk of detracting from a brand's core message. The future of gamification in marketing is promising, with the integration of cutting-edge technologies such as AR, VR, and AI, alongside the increased adoption of gamified strategies on social media platforms and mobile devices. However, marketers must remain mindful of potential challenges and strive to balance innovative gamified experiences with responsible marketing practices, ensuring user privacy, ethical design, and preventing customer fatigue. By striking this balance, the future of gamification in marketing is set to revolutionize the way businesses engage with their audiences and build lasting relationships.
MIT Department
Sloan School of Management
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