Following on from my last blog Adding Location to Loyalty Cards, an area that I feel is really important is game mechanics. One of the problems with loyalty cards is that they are inherently boring and there are lots of them. We live in a world of constant distraction and we want instant gratification. However that gratification doesn’t have to be a free air ticket or turbo food processor with Ginzu knives. It can be as simple as points or recognition and applications today need to evolve as the public become more tech savvy on their mobiles.
What is game mechanics and how is it relevant? Playing games is part of who we human animals are. Games are a natural part of entertainment and education, whether it is a child doing its first jigsaw puzzle, or the All Blacks heading into a rugby match at that international world competition for a cup. Yes, ultimately no matter how passionate we are about success, Graham Henry and the NZRFU themselves said “It’s just a game.”
Games are immensely popular and computer and mobile offers massive revenue potential. Gartner predicts that the global video game industry on its own will generate revenues of over US$112 billion by 2015. That doesn’t even take into consideration mobile. Application developers have been all over Facebook, now on Google+ and on devices such as iPhone, iPad and Android and now developers of smart location based games and marketing applications are heading the same way.
Developers are looking to use our interest and passion for playing games to influence the behaviour of consumers and it is working. One obvious area is in the retail, travel, tourism, attraction, hospitality and entertainment industries. Of course as I have outlined in many recent blogs, loyalty is a key aspect that all of these industries are looking for, or in other words, profitable repeat business.
So what aspects should a loyalty application include. A major one is achievements. I’ve talked about reward and that rewards don’t have to be tangible items. A reward can be points such as the points used by Foursquare when you check into a location. They also have badges and mayorships which are either the reward itself or their may be special deals or offers made to those people who come in regularly. The new Tap City game allows you to earn virtual dollars for checking in. One of the great things about group loyalty operations is the ability to cross market, for example using a passport concept where the more locations you check in to, the more rewards you get.
The appointment dynamic is extremely powerful. This is where you want people to do something at either a predetermined time or an ad hoc time. For example a restaurant that is always quiet between 3PM and 5PM on a particular day of the week might offer incentives within the application to get more business at that time of day. The concept I like the most, is pushing deals when you have inventory you want to use in a hurry. An example might be the special of the day in a restaurant where you haven’t sold as much as you catered for. The classic story I often use of a jet boat that is going out in 20 minutes with 5 empty seats. This is a perfect opportunity to push a deal to people who are close by and have opted in to be offered deals. The cost differential between having 4 or 9 passengers is negligible but the fun and entertainment factor of 9 people screaming as the boat does a 360 degree spin is significantly greater for all, including the 4 who paid full price. There is also a potential dynamic of more people seeing them having fun and therefore wanting to have a go themselves. The same could apply to any attraction, like the luges in Auckland and Queenstown.
I can come up with a hundred concepts for different types of locations for cafe’s, restaurants, attractions, theatres, travel, accommodation, entertainment, retail, sport, tourism and so can you.
I will continue this blog next week with more thoughts on game mechanics or gamification that you might like to consider in your location based application. Remember, GeoSmart has all the data and tools you ned to make these ideas possible and whilst we don’t develop these sorts of applications ourselves, we have many partners who are keen to assist you if you want to take advantage of the opportunities now possible because of the large number of people using location aware mobiles. The question is how much extra business would you like?
Maybe you would like to join the discussion and leave a comment of your own to add to the mix?
This can apply to any segment, but lets use car sales as an example today. Lets imagine you are Sales Manager for a car dealership. You have a budget to achieve and you need to understand what is going on in your territory. You have 6 sales people, each has a unit and dollar budget and you have a budget for each model of car you have on offer.
You have got some excellent sales history, because you are selling big ticket items and you know where the people live who purchased your cars. Using the GeoSmart Business Visualisation Application you can see the locations of all the cars sold in December.
In this example, you are looking at small engine car sales from your dealership in an area of Auckland’s North Shore. This already shows you that you seem to have made sales in clusters of area, but there are other areas where you haven’t made sales of this class of vehicle.
Now lets think about other things you can do. First we can also overlay in different colours, car sales for December of your other models. You can display each model’s sales in a different colour. Now you may start to see some change, you may see that you get clusters of SUV or high end sedan sales in other areas, or you may still see gaps.
Another thing you can do as a separate view is look at all sales by one of your sales people on the map. In the same way as you did with the car models, you can assign each sales person a colour and display their sales on the map at the same time. You may again see some interesting things. Maybe one sales person is getting more sales in a particular area. He may be using a referral technique that the others can learn from. I’m being simplistic and generalist here, but there is always going to be a reason for the results you are getting and these reasons are often impossible to find using spreadsheets and tables on their own.
Another query you could run is viewing car sales per sales person by model, comparing them with other sales people per model on the map.
Given that you have sales history for each month, you could do the same sort of thing by visualising the above information by date. Assign a different colour to each month and you can then view each map and see if you can spot any trends. In your financial systems you have a wealth of information and we provide the ability to query that information and display in on the map. For example, some of the things you might query are:
- Gender of the purchaser?
- Age Group?
- Have they purchased from you before?
- What was their last car? Same brand or change? Larger or smaller?
- Was there a trade in?
- Was it a profitable sale?
- Was it for work or personal use?
The industry produces statistics each month. The latest reports on the AA Website say that the top selling model for December 2010 was the Toyota Corolla, but also interesting was that second was Toyota Hilux and third was Holden Commodore. So we have small to medium sized cars as most popular, but light commercials coming second and larger sedans coming third. Obviously there is much more to it and the dealership will have much more intelligence. The key here is whether the same trend is happening in your area and how you can capitalise on that knowledge, something I will look at in further blogs.
If this is of interest, please subscribe, or bookmark this blog and if you know anyone to whom this is of interest, why not send them a link. In business we all have a wealth of reports, but it is very easy to suffer death by statistics. There is an old adage that a picture speaks a thousand words and maps are a great way of delving into your business data to find knowledge that may otherwise remain hidden.
If you have questions, or would like to know more, please feel free to contact us.
commGeoSmart is at the Trafinz conference this week in Wellington this week. Over the last year it has been developing real time traffic solutions including AA Traffic. AA Traffic was developed for the NZ Automobile Association to assist motorists in identifying traffic incidents ranging from road works through to accidents and road closures resultant from a wide range of causes including in recent days earthquakes and flood damage.
As part of the data collection and applications developed in this area, GeoSmart has been collecting real time vehicle traffic flow data throughout New Zealand on all roads from State Highways to connector roads. In addition to viewing this to assist us in our real time traffic services, we are also storing this data so that it can be used historically.
We already have around 4 months of historic traffic flow data that can be used by traffic engineers, consultants, councils and other authorities for analysis, planning and forecasting. It can be delivered in a variety of ways. For example if someone is working on a project for a specific road segment or network, we can make available data for that location by time of day, day of week to enhance the quality and quantity of the information being analysed. that information could be provided as a CSV file or for overlay in a web mapping or GIS environment.
Feedback so far from attendees at the conference has been very favorable and we are now looking at ways of working with organisations who will find this information of value.
We are also working with Fleet Management companies who are interested in the potential to allow their clients to not only see their vehicles on a map, but to also be able to see real time incidents and traffic flow on the same map. This would enable dispatchers and fleet controllers to make decisions based on real time and historical data on routes to use. This can have value to all sorts of road users from emergency services through to transport and distribution companies, meter readers, field service companies, to name a few.
An example of the use of this data is in the September issue of Metro Magazine’s feature on ‘The Best Places to Live in Auckland’ for which we calculated commuter morning drive times into the city from around 50 suburbs.
GeoSmart already has API’s, Web Services and applications available in the field 0f route optimisation. Companies using this technology have enjoyed significant ROI by being able to reduce travel distance and time, which also has the byproduct of reducing CO2 emissions. This means being able to provide a better service to their customers, while also increasing productivity and profitability. In the future we anticipate being able to add real time traffic into the equation for real time route optimisation.
GeoSmart is now planning meetings with traffic engineers, local and regional Government and other organisations to discuss how the real time and historic traffic flow data may be used and welcomes the opportunity to meet with any interested parties to discuss mutual opportunities.
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