It’s an old question—“What will help us attract and retain customers?”—with a very new answer: gaming. In “Play to win: The game-based economy” (Fortune, September 3, 2010), JP Mangalindan describes companies that “study and identify natural human tendencies and employ game-like mechanisms to give customers a sense that they’re having fun while working towards a rewards-based goal.” Companies don’t do this because they want their customers to have fun; they do it because it helps them attract and retain customers, which increases their revenues.

If you’re wondering how “gamification” might apply to your company, consider Mangalindan’s examples:

• Mint.com made personal finance a game. You can set a financial goal online and track your performance toward achieving it. You can check out your total financial score, which encourages financially responsible behavior. You can even compete with other members who have similar goals. If you think that sounds lame, think again: Mint.com claims more than 1.5 million active users.

• Nike sells a pedometer (Nike +) that you put in your sneakers. It monitors distance, pace, and calories burned and transmits the data to your iPod. The Nike software on your iPod “rewards” you if you reach a milestone. For example, if you run and you best your 5-mile distance time, Lance Armstrong congratulates you via audio clip. Nike has sold more than 1.3 million Nike + units.

• Foursquare is a mobile social network that “rewards” users with virtual badges. For example, check into a location the most and you become that spot’s “Mayor.” Foursquare has more than two million users.

Gaming is the newest form of incentivizing customers to do business with you. Are their aspects of your products or services that can be “gamified”?

To read more about attracting and retaining customers, click on these articles:

• 10 Critical Questions: Your Customers
• Stakeholder Mapping
• Creating a Unique Customer Experience
• Walk in Your Customer’s Body Armor
• Be Careful How You Measure Customer Satisfaction
• Bottom-Line Value of Customer Engagement

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