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There has been much interest by academics and practitioners in the concept of gamification: the use of game design principles to change people’s behavior in non-game situations. However, there is also much confusion as to what gamification is and is not, and how it can be used by organizations to deliver benefits. In this article we present a framework for understanding how to apply gamification to better engage with and change the behaviors of two key types of people: employees and customers. The framework is based on three interrelated gamification principles, namely mechanics, dynamics, and emotions, which we explain and illustrate using four examples of engagement. To this end, we conclude by presenting five important lessons that serve as heuristics for managers who wish to utilize gamification for engaging employees and customers.