Innovating customer service delivery through gamification and user experience International Symposium 25 th Annual SOCAP Australia 18 th August 1015

Innovating customer service delivery through gamification and user experience

International Symposium

25th Annual SOCAP Australia

18th August 1015

www.kpmg.com.au

2© 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

TITLE AND ABSTRACTInnovating customer service delivery through Gamification and the user experience

ABSTRACT Information technologies, social networking and crowd sourcing are just some emerging technologies constantly threatening to disrupt the fabric of customer services - and more often than not threaten to fragment complaint handling, dispute resolution, and corporate service charters into the public and social environments.

Gamification, however, is a competing application that poses an innovative opportunity to create customer centricity unlike before. Gamification is an emerging modern business practice that uses game mechanics and game design

elements to measure, influence and reward target customer behaviour. These game mechanics, when applied in the non-gaming context, work as a catalyst for making technology more engaging by influencing use behaviour and social interaction methods.

Gamification, as a technology and business process, thus, has the potential to provide increasingly valuable focus and information on customer behaviour and their experience across the enterprise. Business scenarios for applying Gamification are wide spread ranging from customer service, help-desk and support to

specific customer communities and collaboration.

The presentation will outline the landscape for competing technologies that are threating or leading to innovations in the customer services delivery sector. In particular, the presentation will explore the characteristics and mechanism of Gamification that are important for businesses to understand and apply. The presentation also seeks to provide insights on Gamification trends, real-world business challenges and also describe how game thinking can revolutionise the business and create a more engaging experience.

ABOUT Bill is a leading expert in the ICT and Innovation sectors, where he has established a track record in; conducting economic analysis across the sector, developing and advocating broad reaching public policy strategies on innovation and leading the creation of significant research-industry engagement.

At KPMG Bill provides business growth, transformation and competitiveness as a capability and service to small-to-medium-enterprise so that they may confidently address the opportunities and challenges being created by new business models that are based on innovation & technology.

“Australia is falling behind in the global innovation ecosystem because we’re stuck on linear innovation that goes “step by step” and we should be using an open collaboration model”, Bill Petreski, Microsoft pushes for new approach to innovation, CIO, 2014

“SMEs and large corporate have a lot greater investment in R&D, provide a lot less risky route to market and a much greater impact on the economy. Everyone talks about venture capital but most of the companies we work with supply their own capital and venture capital plays very little part in innovation.””, Bill Petreski, How to boost innovation: why small and mid-market businesses could trump start-ups, BRW, 2014

“By committing 15 per cent of turnover to new product development, companies like Red Robot and Rode are meeting the high global benchmark for innovation spending.”, Bill Petreski, The next Cochlear: future of home-grown manufacturing, AFR, 2014


AGENDASchedule for the presentation and takeaways

ITEM PAGE

Title and Abstract………………………………………………………………………………….. 1

Agenda……………………………………………………………………………………………… 2Introduction…………………………………………………………………………………………. 3

About Gamification………………………………………………………………………………… 4

Gamification Trends……………………………………………………………………………….. 5 - 6

Frameworks for Gamification and Game Thinking…………………………………………….. 7 - 8

Key Game Elements………………………………………………………………………………. 9

Gamification for the Enterprise…………………………………………………………………… 10 - 12

Case Study – KPMG Client………………………………………………………………………. 13 - 14

Case Study – Centrcity Pty. Ltd………………………………………………………………..… 15 - 16

Case Study – Snobal Pty. Ltd……………………………………………………………………. 17 - 18

Real world Business Challenges………………………………………………………………... 19

Summary and Conclusion………………………………………………………………………… 20

References…………………………………………………………………………………………. 21

Contacts…………………………………………………………………………………................ 22


INTRODUCTIONThe term Gamification was coined in blog posts by Bret Terril1 and James Currier2 in 2008.

In 2011 two definitions of Gamification got published.

Deterding et al. [4] defined Gamification as “the use of game design elements in non-game contexts".

Huotari and Hamari [5] defined it as “a process of enhancing a service with affordances for gameful experiences in order to support user's overall value creation".

THERE IS NO UNIVERSAL DEFINITION FOR GAMIFICATION.

An updated definition is required to clarify what Gamification is, and what it is not. Gartner is redefining Gamification as “the use of game mechanics and experience design to digitally engage and motivate people to achieve their goals”3

The application of typical elements of game playing (e.g. point scoring, competition with others, rules of play) to other areas of activity, typically as an online marketing technique to encourage engagement with a product or service.


ABOUT GAMIFICATIONYour probably involved without even knowing!

Timer

Progress bar

Epic meaning (usually a photo of somewhere fun)

Points

Status

Outstanding list

Rewards


GAMIFICATION TRENDSThe application of Gamification is quite broad across industries and platforms.

The dream The reality

While the possibilities of Gamification may be intoxicating, the sober reality of business processes and project management fundamentals remain.


GAMIFICATION TRENDSThe application of Gamification is quite broad across industries and platforms.

CATEGORY EXAMPLE TREND GAMIFICATION PLATFORM

Enterprise(Case study)

Crowd Sourcing information and solutions for employee engagement, productivity enhancement, efficiency and operational improvement as well as innovation and new product development.

BadgeVille, BunchBall, Actionable, BigDoor, Gamify

Social Web Data analytics or Big Data involves tracking the behaviour of someone on a website, and then analysing this behaviour. Say a person hovers their mouse over a certain part of the screen, and you really want them to click on that spot. Gamification giving a reward of some sort can get him to click.

CrowdFactory, Socieltype, Gigya, Badgy, Gamification

Customer Relationship Management (CRM)

Fusion, Hoopla

Loyalty(Case study)

Loyalty Programs such as Frequent Flyer Points or retail shopping awards. The next generation of loyalty programs are being referred to as Loyalty 3.0.

CrowdTwist, BulbStorm

Support and Service(Case study)

Voice of Customer where customer experience (CX) management is currently complex and inefficient.

Nicely

Human Capital Management (HCM)

Improve employee adoption of sensible Human Resource processes and engagement. Activities such as setting up a meeting with a manager (aside from their own), going to lunch with co-workers, or even just finding the break room could be turned into points-earning missions.

MindTickle


FRAMEWORKS FOR GAMIFICATION AND GAME THINKINGThere are a number of definitions

Behaviour

Game DesignDigital Strategy

GAMIFICATION

Game mechanics describes the use of elements such as points, badges and leader boards that are common to many games.

Game design describes the journey players take with elements such as game play, play space and story line.

Gamification is a method to digitally engage, rather than personally engage, meaning that players interact with computers, smartphones, wearable monitors or other digital devices, rather than engaging with a person.

The goal of Gamification is to motivate people to change behaviours or develop skills, or to drive innovation.

Gamification focuses on enabling players to achieve goals. When organisational goals are aligned with player goals, the organisation achieves its goals as a consequence of players achieving their goals.


FRAMEWORKS FOR GAMIFICATION AND GAME THINKINGGame design characteristics

Goals – Define goals for business users and monitor their behaviour and reward them on their achievements in the overall journey. Design of the Gamification system needs to constantly refer back to achieving those goals. Games lose their mettle in case they are not tied to the goals.

Rules – Rules become an inherent part of the game. Each game has a series of rules provided by game designer which are applied to the player. In business context, rules are often captures in the form of wire-frames.

Resources - Manage resources in terms of time, effort and status – Say for example, Blogger experience on the websites and portal shows the level of effort that is required to complete certain tasks. Progress bar for installing and configuring products, tools indicates time for the activity/ task. Several social media sites give a status or progress bar to encourage user to continue and complete their social profiles.

GAME DESIGN CHARACTERISTI

CS

Rules

Information

Resources

Goals

Information – Games provide player the most relevant information to make decisions appropriately. At every stage, players review the state of the game and make decisions about what to do next. It is the responsibility of the game designer to ensure that players are provided relevant information to manage their resources.


KEY GAME ELEMENTSThe typical architecture of any Gamification initiative is essentially based on key game elements

Rewards and Incentives: Campaigns to offer discounts, promotions and incentives to their employees, customers and partners through e.g. Loyalty programs.

Badges: A technique, when embedded into social applications demonstrates different level of achievements when participation milestones are reached.

Leader boards: Assign Leader boards in different areas of domain expertise across business functions.

Points and Scores: Game platers earn points based on level of participation. Points come in many different forms like redeemable points, Skill, karma and Reputation etc.

Competition: Competition is something that can outcome.

Social Connection: Leverage social networks to create competition and provide customer support.

Levels and Reputation: Signifies the level of user engagement across the business value chain and becomes a basis for awarding players once they reach a specified level.

The criteria for awarding Points is broadly depend on following key attributes – speed of response, frequency and quality of participation, and learning

May take one or other form of accuracy, creativity, strategic tactics, Knowledge and time, for instance a football game requires physical elements (Strength, speed and accuracy) along with mental tactics and knowledge of the opponent team.

A user generates a reputation when he gets an enough attention to the questions and answers posted by him. Reputation is the clear measure of the trust build in the community and gives an understanding of the relevance of questions and answers in right context.

Organisations design rewards structure that encourages desired behaviours in employee-facing environment.


Gamification will became a core part of system integrators’ transformation programs and top system integrators have already begun partnering with leading Gamification vendors.

Gamification has an immense opportunity to increase the visibility of processes in the enterprise and incorporate the real experience of interacting with colleagues, customers and suppliers.

With the adoption of Gamification, it is likely required to embed game elements into core enterprise systems and processes across the business.

Gamification has a tremendous potential to shift the focus towards sharing motivation, influence behaviour, get stakeholders engaged and tapping into real-world customer relationships.

Gamification brings a new way of thinking, designing, and implementing solutions by aligning game objectives with the desired state of outcomes in the enterprise.

GAMIFICATION FOR THE ENTERPRISEGamification is central strategic planning process in enterprise and government

Gamification

Strategy

Customer

Process

Organisation

Enablers

The extent that the organisation has identified a vision, goals, opportunities and initiatives to maximise business benefits of digital initiatives to the business.

The extent with which the organisation effectively engages with and manages their customer interactions and relationships through digital channels and media

The extent to which the organisation puts structure and governance around digital activity, while also using digital to drive efficiencies

The extent to which the organisation has the right Digital leadership, structure, employee engagement in place to ensure Digital is embedded into the business.

The extent of capability across Technology, Digital Security and data and analytics to enable digital to support and drive the overall business strategy.

Governance & Management (BAU & Change)

Operational Effectiveness

Vision & Strategic Planning

People & Capabilities Digital Structure

Engaging customers Managing Customers

Digital Security Gaming Technology Data & Analytics



Gamification provides many benefits to the enterprise

Employee Engagement

Productivity Improvement and

Enhancement

Efficiency and Operational

ImprovementInnovation and New

Product Design

Enterprise Gamificatio

n

Large enterprises are attempting to leverage Gamification to encourage their employees to make valuable contributions to their existing collaboration and communications platforms.

Crowd sourcing is a good example where Gamification can be applied.

Key performance indicators are a prime focus for integrating into a Gamified platform employee performance as a measure to improve overall business performance through productivity.

This can be displayed at a dashboard or giving employees real-time feedback.

New product or services development is at the core of Gamifying innovation.New product or services development

is at the core of Gamifying innovation.



Gamification provides many benefits to the enterprise

CATEGORY COMPANY GAMIFICATION PLATFORM

Customer Engagement Samsung ‘Samsung Nation’ educates customers about products and improves engagement

Marketing and Sales BBVA Bank ‘BBVA game’ helps sell retail banking products

Recruitment Revelian‘Wasabi Waiter’ uses simulations to help with HR psychometric assessments and evaluating behavioural fit

InnovationDepartment of Work and Pensions

‘Idea Street’ allows staff to invest in ideas and collaboratively develop them

Community Good United Nations ‘Free Rice’ enables learning and a social good by donating food if quizzes are

answered correctly

Staff Engagement and Productivity

SAP Community

‘SCN’ helps to encourage, recognise and reward participation of both customers and developers in the SAP community


CASE STUDY: KPMG ClientCrowd sourcing: a fresh approach to enterprise bargaining negotiation strategy

Engagement stream: crowdsourcing campaign to canvas employee

perceptions and opportunities for ‘give and take’ in the negotiations

Costing stream: provide advice about establishing the

financial implications of specific negotiation options

Client challenge:A large State government agency was preparing to enter its 2015 enterprise bargaining agreement negotiations. This was a heavily unionised environment where the Union was likely to leverage its intimate knowledge of the workforce during the negotiations, and use highly effective methods to interact with its members. The agency was seeking an innovative approach to developing its strategy and engaging employees. It required a bargaining position with a high likelihood of acceptance which was supported by meaningful data, collected with minimal union influence.

KPMG response:KPMG was engaged to provide a fresh alternative to the traditional negotiation approach. Three integrated streams were used to engage employees and develop a practical negotiation strategy grounded in fact. These were:

Negotiation stream: identified ‘hot button’ issues across four

broad areas of central importance to the log of claims

Benefits to client:The negotiation stream grounded its approach in the strategic business context, integrated the findings from the engagement and costing streams, questioned traditional assumptions used in the past, and leveraged the deep union experience of the team. Innovative bargaining positions were presented and debated with the client based on practical interventions and a longer-term strategic perspective. The client was able to reflect on their workplace relations landscape and create a plan to realign their culture over time to enable continued service delivery with decreasing resources.

Recommendations were provided around the identified ‘hot button’ issues. The final report identified affordable and collaborative outcomes that were designed to build harmonious relationships between the employer its employees.

Detailed insights into employee views in relation to each of the key themes considered in the EB log of

claims

A profile of the ‘average’ employee including their cultural

ideals, career aspirations, personal motivations, and

attitude to organisational change

Knowing those issues where the agency and employee needs were aligned, and in which areas change may be

met with resistance

Guiding principles for the negotiation strategy

Strategies to tailor employee engagement to appeal more

effectively to specific types of employees throughout the course of the negotiations



Idea

Enrichments

Post Enrichments

People are suggested to contribute and score

Votes on ideas

Rewards



From Idea pages to evaluation tools through to management dashboards.Q&A, Quick answers to

critical questions posed through the application.

BlogSpot, Wikis, Discussion forum, Sharing digital assets, continuously sharing tacit knowledge

Review and rate content, number of likes received from Blog Posts, Forum and other communities.

Quick Response

Level of Participati

on

Quality Suggestion

s


CASE STUDY: CentricityVoice of Customer where customer experience management is currently complex and inefficient.

Client challenge:The National Australian Bank realised their customer experience management systems were increasing in complexity and becoming inefficient. It wasn’t because they lacked volume of sources of information nor that they lacked the right information. Firstly, the NAB sought ways to integrate their traditional customer feedback sources through distributed call-centres and an ever expanding source of digital channels such as; email, social networks and text, Their big challenge was not just to collect feedback data, and understand it, but to be able to action it in an effective way.

Centricity response:Centricity enriched the platform by; Capturing richer customer insight through feedback collection across multiple channels and

enriched by employees Pinpointing CX issues in real time using advanced data analytics Making data actionable across silos to enable fast change

Integral to capturing richer information was Gamification of the interface to allow real-time evaluation and immediate response to changing needs.

About CentricityCentricity is a Customer Experience (CX) technology and consulting business that uniquely integrates Voice-f-Customer (VOC) and Voice-of-Employee (VOE) insights to manage the way organisations drive CX change.

“Using Centricity, NAB Assist are taking the time to understand our customers’ space and becoming more solutions focused. Our NPS program has improved our performance not only in dollars, but also in making us a more customer-centric unit.”Norm Kalcovski / Manager, E2E Customer Experience, NAB


CASE STUDY: CentricityVoice of Customer where customer experience management is currently complex and inefficient.

Verbatim feedback

Feedback Alerts

Analytics and Reporting

Employees Insights

Issue Resolution

Centricity harnesses customer experience insights, through Gamification methodologies, in real-time and motivates staff to contribute and collaborate to drive more efficient CX changes.


CASE STUDY: Snobal Pty. Ltd.3D Gaming technologies for facilities management, training, efficiency gains and productivity improvement

19


CASE STUDY: Snobal Pty. Ltd.3D Gaming technologies for facilities management, training, efficiency gains and productivity improvement


REAL-WORLD BUSINESSES CHALLENGESSome of the challenges and risks that become major roadblocks to Gamification adoption across enterprises

Culture Gap - Gamification as a business discipline is evolving with the current usage of gamified mechanics but the ultimate success depends on the culture change in the organization which is the major barrier to its adoption in businesses.

Lack of ‘Win States’ or ‘Success Metrics’ – What target behaviors and success metrics will define if gamified system is a success or failure

Lack of Motivation – No value derived from encouraging behavior to make boring activities interesting

Lack of understanding the needs of the game player like Demographics (age, gender etc) and Psychographics (Personalities and their values)

No meaningful choices available to the user – Target activities and behaviors are not sufficiently engaging

No structure laid out to model the target behaviors Lack of fun element de-motivates the users to engage with the

application/system Lack of right Gamification tools, platforms and multi-channel

support


SUMMARY

Gamification is not about people playing video or PC games in the office.

Gamification has many dimensions and design and implementation depends heavily on the application and the lens from which the problems are viewed.

There are well defined methodologies for Gamification that emanate from Digital Strategy, Behaviour measures and Game Design.

Gamification can be used to develop robust strategic and tactical business planning for competitiveness, growth and transformation.

Organisations and others are embracing Gamification strategies to improve operations, recruiting, marketing, and even research and development.

The research group Gartner, Inc. has predicted that “40 percent of Global 1000 organizations will use Gamification as the primary mechanism to transform business operations.”

There are an enormous amount of applications


REFERENCESGamification has a long history of definitions and development

1. http://www.bretterrill.com/2008/06/my-coverage-of- lobby-of-social-gaming.html, 2008

2. http://blog.oogalabs.com/2008/11/05/gamication-game-mechanics-is-the-new-marketing/, 2008

3. Gartner Redefines Gamification, Gartner Blog, Apr. 4 2014

4. S. Deterding, D. Dixon, R. Khaled, and L. Nacke. From game design elements to gamefulness: designing gamification. Proceeding of the 15th International Academic MindTrek Conference, pages 9-15, 2011.

5. K. Huotari and J. Hamari. Dening gamication: a service marketing perspective. Proceeding of the 16th International Academic MindTrek Conference, pages 17-22, 2012.

http://www.bretterrill.com/2008/06/my-coverage-of-%20lobby-of-social-gaming.html

http://blog.oogalabs.com/2008/11/05/gamication-game-mechanics-is-the-new-marketing/

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To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).

© 2014 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International).Liability limited by a scheme approved under Professional Standards Legislation.

Contact

Dr Bill PetreskiDirectorT (03) 8663 8615E [email protected]

www.kpmg.com.au

Documents

Innovating customer service delivery through gamification and user experience International Symposium 25 th Annual SOCAP Australia 18 th August 1015