The benefits of Gamification in your SaaS

Clement Verhille 5, 2023
Background image

Gamification is a rapidly growing field, and an increasing number of companies are looking to integrate playful elements into their software-as-a-service (SaaS) applications.

By incorporating gamification effectively and aligning it with clear objectives, it can lead to a significant boost in user engagement. However, gamification may not always be the right solution for every application. My role is to guide you in determining whether gamification meets the needs of your business and your long-term strategy.

In this article, we delve into the following areas to shed light on the benefits of gamification in saas:

  1. The definition of gamification
  2. The benefits of well-crafted gamification strategies
  3. The importance of user engagement
  4. Examples of gamification applied to saas

Definition of Gamification

Gamification involves introducing elements from the world of gaming into non-gaming environments such as websites, applications, or educational platforms to boost user participation and engagement. The goal is to make these often technical and complex environments more user-friendly and entertaining. Gaming elements include points, leaderboards, badges, contests, win streaks, progressive levels, recurring rewards, and virtual currency or loyalty points.

Gamification encourages consumers and business clients to collaborate, share, and interact with the platform or application, as well as with each other.

Benefits of Leveraging Gamification Strategies

Integrating gamification into your SaaS application offers multiple benefits that can enhance engagement, retention, and revenue.

Among these advantages are:

  • Creating a positive immediate impression. It is crucial to capture users' attention as soon as they download an application to encourage continued use. A report by AppsFlyer reveals that one in two apps are uninstalled within 30 days of download. With gamification, you instantly captivate users with an engaging first impression.
  • Simplifying complex or routine actions or processes. Applications are often downloaded out of necessity, such as in the case of mobile banking or health apps. Playful elements transform what could be a complicated or monotonous experience into an easy and enjoyable one, thereby increasing the likelihood that users retain your app instead of turning to a competitor.
  • Building a habit or attachment. Introducing challenges, experience points, ranking systems, streaks, personalized messages, and other features creates a sense of accomplishment and competition that keeps users coming back. For businesses, this can mean increased loyalty, better retention, and higher lifetime value (LTV) for each user.
  • Encouraging an increase in paying customers. Many apps adopt a "freemium" approach, where the basic version is free and additional features are available for a cost. When users become attached to the app's gamification aspects, they may be more inclined to choose a paid version, resulting in higher LTV and revenues.
  • Enhancing brand awareness and adoption. Apps with gamification often prompt users to share their achievements on social media or with friends and family, promoting broader brand recognition and attracting new potential users.
  • Encouraging recurrence and regularity by rewarding daily or weekly logins with loyalty points or exclusive bonuses, which can be exchanged for perks within the app.
  • Implementing a progressive leveling system that enables users to track their progress and unlock new challenges and rewards as they advance, reinforcing their commitment and motivation.

The Importance of User Engagement

While gamification may not be the perfect fit for every app or business model, if your team fails to implement a strategy to increase user engagement, whether through gamification or another method, it could jeopardize your company's long-term success. Low engagement can lead to:

  • Loss of customers and market share. If the tasks or processes in your app are too complicated or unengaging, users may uninstall it or turn to competitors offering similar functionalities, causing you to lose market share.
  • Decreased usage. A steep learning curve or dull processes can quickly dissuade customers from using the app. Even if they don't delete the app or switch to a competitor, less frequent use can negatively affect your revenue, especially if the free version is supported by activity-based adverts and user engagement.
  • Reduction in paying customers. You might not completely lose your customers, but if they don't develop a habit or attachment with the app, they may not see the long-term value in a paid version and revert to the free variant.
  • Negative reviews. Customers frustrated with the app's experience are likely to leave negative feedback or dissuade others from using it.

By following these practices and placing gamification at the heart of your SaaS strategy, you can create a user experience that not only captures attention but also fosters lasting loyalty. Gamification isn't just a gimmick; it's a powerful tool that, when properly utilized, has the power to transform user interaction with your service entirely.

Examples of Gamification Applied to SaaS

Gamification strategies have been effectively implemented in a number of Software-as-a-Service (SaaS) platforms, especially to enhance user experience and engagement. Here are specific examples of how SaaS applications can utilize gamification components such as Streaks, Levels, Leaderboards, and Badges:

E-Learning Platforms

  • Streaks: Language learning apps like Duolingo use streaks to motivate daily practice, rewarding consistency and persistence. Learners can maintain a "streak" by completing lessons every day, thus incentivizing regular use of the app.
  • Levels: E-learning platforms often utilize levels to structure content, unlocking more advanced material only after earlier lessons are completed. This keeps users on a guided path and celebrates their progression with new, harder challenges.
  • Leaderboards: Some platforms allow students to see where they stand relative to peers or within their study group, promoting a friendly competition that can drive further engagement.
  • Badges: Completing set challenges, scoring high on tests, or finishing entire courses can earn users badges or certificates, providing a tangible sense of achievement and credentials they can share or add to their resumes.

Fitness and Health Apps

  • Streaks: Fitness apps can track the number of consecutive days users exercise, emphasizing the importance of routine for physical fitness, and rewarding users for not breaking the streak.
  • Levels: Users can progress through levels as they reach objectives related to exercise duration, intensity, or frequency. Each level can unlock more challenging workouts or provide access to exclusive content.
  • Leaderboards: Competitive elements such as leaderboards compare users' workout achievements, motivating them to work hard to climb the ranks.
  • Badges: Achievement badges can be awarded for varied exercise milestones, such as running a certain distance or burning a set amount of calories, creating collectible goals to strive for.

Productivity Tools

  • Streaks: Productivity tools can implement streaks to encourage consistent task completion, aiming to build and maintain productive habits.
  • Levels: Users could level up by mastering different aspects of the tool, such as keyboard shortcuts, advanced features, or time-saving techniques, providing a learning path and a sense of progression.
  • Leaderboards: Leaderboards could illustrate who is the most efficient or who has completed the most tasks within an organization, spurring a drive to be more productive.
  • Badges: Awarding badges when users reach productivity benchmarks (e.g., completing a daunting project, achieving a week's planned tasks ahead of time) recognizes hard work and can also point to power users who could become brand advocates.

Customer Support Software

  • Streaks: Gamifying responsiveness, support staff might be encouraged to respond promptly to customer inquiries, with the software tracking their 'response time streak'.
  • Levels: As customer support agents resolve more tickets or receive positive feedback, they can ascend levels, with each new level showcasing their expertise and seniority.
  • Leaderboards: Leaderboards can display the most efficient or highest-rated support agents, using peer recognition to motivate excellence.
  • Badges: Badges can be given for a variety of achievements, such as resolving a high number of support tickets, handling difficult cases successfully, or earning rave reviews from customers.

By incorporating these gamification strategies, SaaS platforms not only enhance the user experience but also help create an environment where continued use, loyalty, and proficiency are celebrated and reinforced.

Grow your business retention in only 5 minutes