Buy 10 get one 1 free, right? WRONG

For Jon Carder, Co-Founder & CEO of restaurant rewards program Mogl, providing utility is the winning formula that makes gamification successful. Carder, speaking at the recent Gamification Summit, made it clear that the old formula of providing points, badges and/or levels are all bad utilities that no longer work to boost levels of engagement. Companies like Foursquare and Scvngr have been unsuccessful at gamifying their products, mainly because they’ve been unable to provide lasting utility.

Loyalty means utility

Customers want utility that doesn’t fade overtime. Frequent flyer dollars and VIP services make a customer feel valued but that’s only the tip of the iceberg, according to Carder.

In trying to gamify the restaurant business, Carder and his team knew that their greatest success would come from tapping into the power of the credit card. Once a user has linked up their Mogl account, the program finds them participating restaurants. Using mobile, customers can see the best deals at the top of their screens and restaurants that are bidding in real-time for their business.

very true, affluent consumers aren’t willing to pull out a coupon when dining @joncarder #gsummit

— Stephanie Garcia (@heystephanie) June 12, 2014

You walk into a restaurant, enjoy a great meal and using your credit card-enabled Mogl account, get cashback every time you eat at a participating restaurant. Using leaderboards Mogl users can track themselves with other users and get alerted to how much money they have earned.

On top of that, Mogl has implemented the Mogl Jackpot giving out cash prizes to the top three earning customers at every restaurant, every month. Tying Mogl to something intrinsically rewarding makes you feel good about winning and earning money, said Carder.

It’s a win for the restaurant patron; it’s a win for the hungry, and it’s a win for the restaurant. With your cashback, you also can choose to donate it to food banks in your area. A principle mission of Mogl is to help end hunger.

Since their launch back in 2006, Mogl users have spent more than $40 million at more than 1,500 participating venues and donating approximately 750,000 meals to food banks. Mogl continues to expand into new markets (now in Phoenix, Los Angeles, Orange County, Ventura County and San Francisco) and has raised a total of $25 million to date from VCs.

Mogl’s three tips to gamification success

Carder’s three gamification tips?

  1. Pick a pain point – Hone in on customer pain points in order to provide your customer with a compelling reason to try your product
  2. Remove any friction – Eliminate the hoops preventing your users from fully participating
  3. Kill the “Buy 10 get 1 Free” – It’s a dated gaming model, having outlived its usefulness and perpetuates a grinding gaming methodology with no sense of fun.

The post Why buy 10, get one 1 free is a proven loyalty fail appeared first on Technorati.

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