Why Enterprise Gamification is Broken (The Psychological Science of Motivation and Effort)

Gamification entered the enterprise world in the mid-2000s. At the time, a number of startup companies (e.g., Bunchball, Gigya, Badgeville, Foursquare and SCVNGR, to name a few) entered the market with the promise of increased employee engagement through point, badge and similar compensation and incentivization schemes. These are collectively referred to as gamification. The underlying assumption was that people would complete tasks and goals more quickly and more accurately because the incentives were present.

These solutions targeted customer loyalty, sales enablement and some marketing initiatives, but the most successful applications were in sales. Despite raising significant capital, the majority of these companies folded because client’s internal adoption was low, and in many cases, these offering were no more effective than simply posting current sales results or sales metrics on the wall.

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