A new report from the Gartner Institute predicts that reward-based applications will soon burn out, citing poor design and market saturation.
A new report from the Gartner Institute predicted that a whopping 80% of all reward-based applications will fail in 2014, thanks to market saturation and poor design.
Gamification apps, a subset of gaming applications that reward usage and engagement with digital points, badges, and more, are becoming increasingly present amongst businesses.
But as more businesses rush to incorporate this marketing tool, Gartner reported most are actually diluting their app's original engagement purposes with a misguided focus on useless rewards. And as the market becomes flooded with uninspiring gamification apps, the report predicted that users will value the service less and eventually abandon it.
"People are just doing it badly," Gartner Research Vice President Brian Burke told TechCrunch. "You can't just put badges on something and expect it to work."
Developers should focus on how the apps can better engage consumers and change their behaviors, according to the report.
"Some organizations are already beginning to cast off poorly designed gamified applications," Burke said in a separate statement.
Successful gamification apps that reward certain actions, as TechCrunch pointed out, include Foursquare, SCVNGR and ShopKick.
Gamification holds other opportunities for businesses, however. Gartner reported that business owners and managers should integrate gamification into their orientation efforts. By framing company policies and practices as a game, then rewarding employees for following the "game's" rules, companies could improve productivity and enact new policies faster.
"…[I]t is important that CIOs and IT leaders understand the underlying principle of gamification and how to apply it within the IT organization," Burke further stated.