# Gamification in Unexpected Places: How Zinio Uses Virtual Rewards to Drive Engagement

- Link: https://phiture.com/mobilegrowthstack/gamification-in-unexpected-places/
- Published: 2020-06-16T11:50:11+01:00
- Author: Mirela Cialai

_⌊gamification in unexpected locations⌉⌊gamification in unexpected locations⌉Editor’s
note: This is a guest post from [Mirela Cialai](https://www.linkedin.com/in/mirelacialai/)
__. Mirela Cialai is the Stevie® Award Marketer of the Year, a frequent speaker 
and podcast guest, Mirela is a marketing leader passionate about the intersection
of entertainment, technology, and consumer engagement._

Recent research by [Localytics](https://www.localytics.com/), a mobile engagement
platform, shows that there’s a strong negative correlation between the number of
sessions users have post-install and user churn rate. The more sessions app users
complete in the first 30 days after installing an app, the less likely they are 
to become inactive and eventually uninstall the app. The big question: how many 
sessions do users need to have in order to reduce the risk of them churning?

A [report](http://info.localytics.com/blog/how-to-keep-your-app-users-with-the-3x3-rule)
also released by the same platform also reveals that if the number of sessions within
the first 30 days post-install goes below a certain level, the likelihood of users
churning is actually higher. 75% of new users who have only one session also become
inactive and eventually uninstall the app, the data shows. 

This percentage decreases further if users have additional sessions, dropping to
less than a 15% churn rate for users who have more than 11 sessions during their
first month. However, depending on the industry, it might be unrealistic to assume
that the average user would have 11 sessions per month. So what’s the solution then?
How can we get users to have more sessions?

![Localytics App User Churn by # of App Sessions](https://phiture.com/wp-content/
uploads/2020/06/image2-2.png)

### **THE GAME-CHANGING STRATEGY**: **Leveraging Gamification to Increase User Engagement & Retention**

Gamification is by far one of the most powerful tools to engage your user base, 
a great way to make the customer experience feel both fun but also challenging. 
Leveraging game mechanics, users have to achieve specific goals or milestones in
order to win a reward. As human beings, we are naturally drawn to competition, as
well as achieving milestones. Most importantly, people love to get recognized and
rewarded for their accomplishments.

At ZINIO, we first introduced gamification by leveraging digital trophies. As a 
fully digital platform that allows customers to read their favorite magazines in
digital format, we were facing the challenge of users only visiting the app when
a new issue of their magazine was published, which, in most cases, was once every
30 days. Our goal was to increase the average number of sessions, getting users 
to visit the app more often and reducing this 30-day gap in-between visits. We believed
that by offering virtual rewards to users for achieving specific milestones, we 
could encourage engagement.

We approached the project by first **assessing the average number of sessions per
user per month**. Based on this number, we defined our goal: to increase the average
number of sessions per month by 1.5 times.

After identifying our North Star metric, we proceeded to split our user base into
3 different segments, based on the average sessions per month:

 1. _First segment _(less engaged users). These users received a campaign with a creative
    displaying a virtual **“Bronze Medal,”** congratulating them for their reading 
    habits, and encouraging them to keep reading to unlock the next level.
 2. _Second segment _(users with higher engagement than segment one) – These users 
    received a campaign with a creative displaying a virtual **“Silver Medal,”** again
    congratulating them for their reading habits, and encouraging them to keep reading
    to unlock the next level.
 3. _Third segment_ (of most engaged users) –  These users received a campaign with
    a creative showing a virtual **“Gold Medal,”** in recognition of their hard work.

The initial results were far from what we expected: the conversion rate of users
targeted with the campaign was significantly lower than the control group – a random
group of qualifying users who did not receive the campaign. 

Our first reaction was obviously one of huge disappointment. However, we didn’t 
allow these results to deter us from reaching our goal. In order to see if we could
improve the results, we decided to run A/B tests with different messaging.

The biggest change we introduced was to remove any mention of the number of sessions
that users had, instead opting to focus messaging solely on their reading achievement.

![Naviga: Gamification ](https://phiture.com/wp-content/uploads/2020/06/image1-2.
png)

The results were impressive: Creative B outperformed by far Creative A in terms 
of user engagement. 

As a takeaway, we understood that our user base might not feel comfortable with 
their activity being “monitored,” particularly with us keeping count of how many
sessions they had. 

Instead, by focusing the message on their achievements, and their status as magazine
enthusiasts, performance has improved significantly. As a result, we’ve seen: 

 * **A tenfold increase in conversion rate** for Creative B vs the control group(
   users who did not receive the campaign)
 * **A twofold increase in the number of conversions** for Creative B vs the control
   group. 

Overall, the campaign has generated a 20% increase in sessions, and a 15% increase
in retention, clearly demonstrating the effectiveness of gamification in keeping
users engaged and addressing churn.

As we move forward we will continue to iterate and test new creatives, as well as
different ways to reward our users, potentially a workaround to deliver actual rewards.
