2. Literature Review
Recent years have seen an evolution in the use of technology, and technology is now increasingly used to encourage and support a variety of actions considered beneficial on both a personal and social level [
8]. Gamification has been the technological development that has gained the most attention in both academic and business fields [
9,
10]. Some researchers describe it as the fusion between utilitarian systems and hedonic systems [
11,
12]. Others define it as the idea of using electronic game design elements in non-game contexts to increase user motivation, interactivity, and retention in a given service [
9]. This concept was first mentioned in 1998 under the term captology (the study of computers as persuasive technologies) by Fogg [
13]. This author defined a persuasive technology as that which is used with the intention of affecting the attitudes or behaviors of those who use it. The growing relevance of this topic has led to more and more articles being published on the effects of the use of such technologies on gratification and their effects on consumers in various sectors (online commerce, education, health, data collection, and internal organizational systems [
8]).
The use of gamification implies the presence of game elements, namely points, leaderboards, challenges, badges, levels, and rewards, among others, as listed in
Table 1. These representations are intended to provide users with a sense of progression and short-term rewards, thereby keeping them engaged in the system [
8,
14].
Each element has been studied individually to see how it affects users. Badges have been the subject of further research, with advantages associated with the use of these strategies, such as better academic results (education), friendly competition and comparisons (social networking), as well as increased interactivity of users (online commerce) [
16]. On the other hand, the use of ranking tables presents a competitive component with the possibility of causing negative effects on certain users who are not competitive by nature, such as lack of interest and motivation [
17]. To minimize these effects, guidelines have been developed for better design of rating tables when applied to gamification [
18,
19].
What began as a simple adaptation of elements that make games appealing outside of the game industry itself has now evolved into a broad area of investigation of the concepts themselves. However, some elements can have both positive and negative effects on different levels, depending on the user who is interacting with the system. This phenomenon was studied by Hamari et al. [
8], who mention that the experiences created by gamified services are dependent on the system being gamified and users, namely their motivations, behaviors, and preferences. To establish a connection between the various elements previously mentioned and different types of users, several models for categorizing users have been defined. These models help the system being gamified achieve the best result by involving the largest number of users.
To understand how various types of users interact with gamified systems, models have been used and adapted based on player profiles that are built to categorize users by grouping them based on common motivations. In 1996, Bartle [
20] identified four types of players (see
Table 2) interacting with MUDs (multi-user dungeons) and role-playing games (RPGs), and their motivations. This model has been widely studied and used as a basis for developing user-focused gamified systems [
21,
22,
23,
24].
Based on this model, a questionnaire was developed that aims to categorize players, and despite the limitations of the model itself, it has been used as a reference for creating gamified games and systems [
25,
26,
27]. Although this model is popular in the gamification field, Bartle [
28] mentions that when you really understand what is important for the gamification design you are developing, more appropriate models can be inferred.
Developed and presented by Andrzej Marczewski in 2015 [
29], this work describes six user types that are created specifically to assist in the creation of gamified systems (see
Table 3).
To understand how the player types in the aforementioned model interact with the different gamification elements that exist, Tondello et al. [
30] conducted a questionnaire to find out which gamification elements are preferred by each player type. The results of this questionnaire are shown in
Table 4.
Through this questionnaire and the results obtained, the effectiveness of the Hexad model in helping to create personalized gamified systems has been empirically validated by Tondello et al. [
30,
31]. Both Bartle’s and Marczewski’s models, which categorize various player types, are in line with what Yu-kai Chou describes on this topic [
32]. According to this author, gamification is not just the introduction of PBL’s (points, badges, and leaderboards) in a boring activity. A good gamification implementation not only considers the types of users in question but also answers the questions, “What are my goals for this experience?” and “How do I want the user to feel?”.
To assist in finding answers to these questions, Yu-kai Chou developed the Octalysis Framework which assumes that all player behaviors have at least one of eight main motivations: epic meaning, accomplishment, empowerment, ownership, social influence, scarcity, unpredictability, and avoidance [
33]. The last three motivations tap into the human nature of loss aversion; typically, if there is no action on the part of a consumer, the consumer will lose something with intrinsic value. As an evolutionary trait, humans have a predisposition toward fear of loss and fear losing over winning. Point-based reward systems are a common gamification tactic. Not only do these elements provide intrinsic value to users for making a purchase, but they also often incorporate some sense of losing points in each period. These points have no monetary value, but their intrinsic value makes consumers feel a sense of loss if they are not fully redeemed. This can be a motivation to encourage customers to make purchases soon.
According to the E-commerce report 2021 [
34], COVID-19 has boosted the growth and, therefore, the profit of online commerce by 19% in 2020 and 22% in 2021 to a total of 28% and 34%, respectively. In the United States, online commerce accounted for 14% of all sales in 2020 and is estimated to grow to 22% by 2025 [
35]. In Portugal, during 2020, online commerce accounted for 20% of all sales, [
36] with many purchases made from foreign companies, such as El Corte Ingles, Zara and Amazon [
37]. In [
38], it is possible to verify that the percentage of e-shoppers has growth from 51% in 2019 to 67% in 2022, which may be a result of the change of habits due to COVID-19. Sheetal et al. stated that due to the COVID-19 pandemic, the volume of e-commerce transactions increased, and gamification as an engagement model provided a better retail experience and enhanced the whole e-commerce experience [
39]. Additionally, Fedirko et al. found that only 5% of the respondents of their study stated that they suffered a decline in online revenue after global lockdown, while 32% experienced a raise of 50–100% [
40]. This might indicate that the pandemic positively influenced the habits of consumers and the attitudes of companies.
Online shopping has numerous advantages for customers, allowing them to save time and money compared to the traditional experience obtained in a physical store. However, because there are low barriers to entry in this space, competition is incredibly high for the limited attention span of consumers. As a result, promoting customer loyalty and engagement is much more valuable in this context.
With the previously mentioned growth in the number of online purchases, users are looking to save time and money in one way, as well as to gain convenience and comfort. On the other hand, online stores are increasingly looking for unique ways to retain customers and build trust in their brand. Gamification is, therefore, an effective strategy for achieving the goals of attracting consumers, boosting brand trust, and increasing profits. Gamification has been found by several studies to have a positive effect on user engagement and enjoyment, which leads to product loyalty [
41].
Regarding what the literature reports about the effectiveness of gamification, researchers agree that gamification tactics work. Gamification strongly influences motivation in returning customers to websites [
12] through positive reinforcement of customer engagement with rewards. This positive reinforcement can help create and maintain loyalty among consumers as they feel trust in the online store they have visited.
According to Behl et al. [
12], what started as simple spin the wheel contests, where users can receive discounts, has evolved into awarding points, badges, and promotions for frequent purchases and visits. These strategies inspire temptation in users to spend more time in the store, making them more aware of new products and promotions. The analysis by Karac and Stabauer [
42] identifies some online businesses that are applying the elements of gamification and relate their success to the motivations defined in the Octalysis Framework (see
Table 5 and
Table 6).
In a study by Azmi et al. [
41], 17 papers on gamification in e-commerce were analyzed. The most applied strategies were rewards, badges, and leaderboards (
Figure 1). All the papers showed positive effects, except for a study conducted by Kim et al. [
43], who indicated that gamification can be counterproductive if its use is forced on users rather than being optional.
The goal of gamification is to affect human behaviors [
44], and, thus, iterations must be designed with users and context in mind.
With these findings in mind, this research aimed to identify if the usage of gamification in an online game server in two different geographical locations—Portugal and United States—showed the identified benefits in previous research works and if the two different communities of gamers presented a different profile toward gamification, which led to different results in terms of sales.
3. Research Design
This project followed a design thinking approach [
45]. It is composed of six phases: Empathize, Define, Ideate, Prototype, Test and Implement (see
Figure 2). In the following subsections, the application of the design thinking methodology of this research is presented.
3.1. Empathize
To better understand the server’s users, their online shopping habits, and what motivates them to play, the following research plan was developed. The server was created in the summer of 2021, a decision based on a market opportunity and uninfluenced by the COVID-19 pandemic. After being live for one year, the next step was to investigate whether gamification would stimulate sales revenue. A user research survey was conducted during the Empathize phase to gather online shopping habits and what motivates users to play the game. First, a quantitative survey was available for users to answer between 10 May and 10 June 2022 through google forms (see
Table 7). Secondly, a qualitative one-on-one interview was conducted with three users that provided a way to be contacted. The data collection included 36 answers from the American server and 46 from the Portuguese server.
The data relating to the first question, “How often do you shop online?”, reveal a substantial difference in the frequency with which US server users shop online. From this sample, 17% indicated that they shop every day, 39% indicated once a week, 25% indicated once a month, and 14% indicated once every three months. When compared to the results from the PT server, there are lower percentages of 2%, 12%, 33%, and 41%, respectively.
For the second and third questions, “Have you ever shopped at a gamified online shop that applies the concepts described above?” and “Did you feel that these concepts had an impact on your purchasing decision?”, on both servers, more than half of the users stated that they had already shopped at a gamified shop, and 80% said that their purchasing decision was affected by gamification. Of the concepts most used in gamification, on both servers, there was a greater preference for rewards and discounts, which, in an online commerce context, is very directly related to saving money. The users on the US server also showed a high level of interest in the concepts of levels and progression, while no significant differences were found among the various concepts for the users on the PT server.
With regard to whether gamification benefits or harms consumers, the options with the most answers were “Neither harms nor benefits” and “Very beneficial”. When asked to justify their answer, the users who chose the first option mentioned their indifference toward the gamification concept since what motivated them to go to the shop was the search for a specific product, regardless of the shop’s suggestions. On the other hand, the users who identified gamification as beneficial mentioned the following advantages:
The possibility of obtaining products at a cheaper price than the original.
Rewarding actions, such as rating and writing an opinion about a product purchased, helps future consumers in their choice and promotes interaction.
Points and badges that increase users’ level not only give the satisfying feeling of progression, but they also increase retention by giving users a goal to achieve, thereby keeping them coming back.
Among some users, concern was registered that implementing gamification in an environment involving money might lead some consumers to spend more than they need or even have. Shopping is a behavior that, for some people, can be too stimulating to the point of creating real structural brain changes and addictive behavior. The stimulation can become too much when the importance of buying a product and/or the buying process is exaggerated [
46]. Gamification in the context of online commerce is often presented as offering a unique and memorable experience to consumers to stimulate their curiosity, increase their interaction with the shop, and promote their return. It is, therefore, possible that gamification may trigger harmful behavior in certain users, and this should be a concern when designing gamification, with the possibility of limiting the act of purchasing for these types of users.
Regarding how gamification affects a company, most users identified it as “Beneficial” since the rewards offered encourage more online shopping and stimulate consumption, which in turn leads to an increase in the company’s profits.
3.7. Evaluation
In the evaluation phase, three metrics were used to evaluate the effectiveness of gamification in an e-commerce context. A user survey was made available through the store to gather data on the interaction between users and gamification elements, and store revenue.
The survey was based on Pedroso et al. [
53] and adapted to fit the context of online commerce and collect users’ opinions about their in-store experience. After two weeks, from 23 September to 7 October 2022, the survey had 106 responses on the US server and 32 responses on the PT server. The results obtained are shown in
Table 8.
The ages of the users on both servers are mostly concentrated between under 18 and 18–24, with some outliers being over 35 on the US server. These users are mostly male, with the US server having a slightly higher percentage of female users (29% versus 16%).
Regarding the first question (
Table 8), on both servers, the general opinion was divided between “Less than I expected” and “Exactly what I expected”. This is in line with the feedback given at the end of the survey where some users indicated that the buttons to access the profile page were not highlighted enough.
On the US server, more than half of the users said that gamification improved their in-store experience (66%) and felt that they returned more often to the store because of the concepts implemented (64%). The users on the PT server had a similar opinion (54%).
When it came to purchasing products to complete challenges, there was a greater contrast between the two servers. While 66% of the users on the US server responded that they would purchase a product to complete a challenge, only 17% of the users on the PT server would do so. The reasons for these responses were revealed in the questions that followed, where 81% of users on the PT server revealed they were not interested in badges, while slightly more than half of the responses on the US server (57%) admitted to not liking the badge they would receive. Of the users who would be willing to purchase a product to complete a challenge, the main motivations were displaying the received badge on their profile for other users to see (45% on the US server) and that the product would eventually be purchased (43% on the PT server).
Finally, 42% of users on the US server and 54% of users on the PT server mentioned that gamification was not a distraction because it was optional, while 50% and 37%, respectively, felt positive effects. A small proportion (8% and 10%, respectively) preferred not to have gamification introduced.
Indicators for the analysis of the use of gamification concepts were extracted from the databases (see
Section 3.6). The indicators collected show the interaction of users with their profile page and with the functionality of the highlighted products. On both servers, there was an interest in the gamification concepts, but on the US server, there was clearly more interaction. The first two metrics in the “Usage Indicators” graph (see
Figure 22) do not depend on direct user input and are only for reference as they are not definitive indicators. The remaining indicators do not depend on direct user input. The description and profile picture are what users see first and can change without prerequisites. Badges, on the other hand, require challenges to be completed, and the gallery requires images to be submitted along with reviews of purchased products.
The graph of completed challenges describes the percentage of users on both servers that completed 20, 40, 60, 80, and 100% of the challenges (
Figure 23). The challenges were created on a large scale, so it was not expected in the established evaluation period that a user would achieve a 100% completion rate. Even so, the number of users with the most challenges completed was higher in the US store.
Finally, the change in store revenue was analyzed by comparing the revenues in the month the gamification concepts were implemented, i.e., September, versus the previous five months. We were only provided the percentual change for the gross revenue and number of sales, so the values of EUR 15,000 and 1000 units were purely used as a starting point. There was a significant increase in revenue and number of sales in the US store (as displayed in
Figure 24) when compared to previous months. In the previous five months, the maximum increase was 15%, and in the month in which the store was gamified (highlighted in the graph in darker color), there was a 25% increase in revenues and the number of sales increased by 21%. Since there was also an increase in the previous month, we cannot say with certainty that this increase was completely due to the implementation of this project.
Regarding the PT store, no significant differences were noted (see
Figure 25), since in the month of April, the percentage difference varied between −10% and 10%. In the month of September during the implementation of the prototype (highlighted in the graph with darker color), there was a 3% decrease in store revenues and the number of sales decreased by 6%.
From the analysis of the questionnaires, we found a larger group of teenagers on the PT server compared to the US server. These younger users showed little interest in completing challenges and obtaining badges on the PT server, while on the US server, these elements were given greater importance so that such achievements could be shown to the rest of the users. In the context of online commerce, a lower purchasing power presents a greater difficulty in interacting with certain elements of the gamified system. For the PT store, the introduction of some discounts as rewards may be beneficial to gain interest in the system. A more intrusive and less optional gamification could also help correct this shortcoming; however, from the beginning, users expressed the need for choice, so this approach was not explored. In the US store, which is visited mostly by adult users, there is less need for discounts, so the value assigned to badges (social and personal) is higher. These results are in line with the findings reported by Meder et al. [
54], in which tangible rewards can motivate users more than intangible rewards.
Since it is also a roleplay server, it is normal that the elements that had the most impact on the users were the profile customization and the leaderboards since both promote interaction between users, although with different dynamics (social versus competition). All of these contributed to the apparent positive effect on the business of the US store and the satisfaction of its users.
The users of the PT store also reported being satisfied with the introduction of gamification, but its revenues remained similar to previous months. Despite the positive results, in the one-month period available, it is not possible to ascertain whether the effectiveness of the gamified elements remains constant in the long term, especially since the motivation offered by gamification tends to decrease over time [
55,
56].
Regarding the research questions, there are no indications to prove that certain elements cannot be used, but the elements that seem to be more successful are the ones that satisfy the types of players that play on the server that the store supports. In this implementation, which attempts to assign value to intangible rewards, the users of the US store were more receptive to these types of rewards than the users of the PT store. Thus, gamification seems to have a positive effect on business if the above-mentioned aspects are considered.
This work implemented gamification that rewarded primarily with badges and extra customization on user profiles through extra spaces for photos and badges as incentives to level up, rather than monetary rewards, whenever possible. This decision might have had some impact on motivating some users to interact with the gamification elements, but the goal was to create value in non-monetary rewards; otherwise, the results might be considered “contaminated” since each reward results in a discount.
4. Conclusions
In this paper, we presented a gamification process and how it affects both customer satisfaction and store revenues. Using the design thinking method, a new interface for the stores was presented and developed. An external server responsible for processing the various gamification concepts was also implemented. It was designed, developed, and tested through an iterative process, and provided answers to the research questions initially defined.
The evaluation phase was conducted through an online survey on both servers (PT and US), collecting data from the interaction between users and the gamification elements, and comparing the store revenues. The number of respondents of the online survey was not large, and, therefore, the findings are mere indicators of the behavior of both user populations.
After analyzing the results obtained in this study, we conclude that the use of this type of strategy is efficient for the business of the US store, with a significant increase in revenues. The work developed also reveals that gamification is well received in both stores, the one supporting the US server as well as the one supporting the PT server. However, on the PT server, despite the good reception, there was no significant increase in revenues obtained. These findings reveal that, although the store design process paid special attention to users’ needs, involving them at all stages, and the gamification elements were developed to attract the largest number of different types of players, cultural (geographic group) and demographic components play a determining role in user interaction with the gamified online stores.
Gamification continues to be adopted by more and more businesses to attract consumers and promote their return through unique experiences. The findings suggest a need for research into how users’ cultural environment affects the performance of gamified businesses and how the gamification design process can be adapted. These variables, including cultural and possibly socioeconomic differences, may provide the answer to consumer preference regarding tangible (discounts) and intangible (badges and user levels) rewards. A possible area of interest for future work would be the various ways to attract users. For those who prefer tangible rewards such as discounts, this type of gratification could be introduced at the initial levels, along with challenges to motivate interaction with the system, and then it could be switched later to intangible rewards.
A limitation to consider in this research project is that the continuous return of a user is not only dependent on the store, but also on his or her game experience within the respective server. Users who experience a negative situation and abandon the game are unlikely to return to the store. Due to the small data sample available for this research project, it was not possible to determine if the improvements in the US store and the amount of user engagement were due solely to the gamification elements applied.
Taking these findings and limitations in mind, a future action plan is to continue monitoring the impact of the gamification process for a longer period—six to nine months—and to apply the same questionnaire at the end of the period. A longer period will validate the results obtained in the first analysis and/or provide us with other variables that should be considered in a future round of implementation (for example, the ages of players may be directly connected with different type of gamification mechanics preferred) or reveal if the results presented here are only due to the novelty factor.