Digital Expression

Two years ago becoming a fan of generic pages like "Dark Chocolate" was all the rage. With 92,541 fans at last count, the page is of significant value to any chocolate brand wanting to launch a new product or stay front-of-mind with chocolate lovers.  In fact, there's a healthy trade in administrative rights that allows a company to access niche fan pages for a price.  I also think there is significant opportunity to any business who understands vanity URLs and the importance of the Open Graph to their Search Marketing Strategy. The value is  comparable to owning chocolate.com.

Chocolatier: Sweet Society.  Source

Today, social gaming can be an excellent way to launch a new brand.  For example Chocolatier: Sweet Society has 900,000 monthly active users and now a product that these people have only been able to access on a computer screen is actually in real-world production.

let's consider how mobile location based applications like Foursquare and Gowalla have proved how game theory can be applied to the real world.  Now consider all the plastic in your purse or wallet. This post demonstrates the power of game mechanics and its application to the real world.

source: Wikipedia

Foursquare and Gowalla educated the market on mobile gaming, check-ins and rewards. Facebook is now taking full advantage of the trend with their launch of 'Places' and 'Deals'.  The gap between online and offline marketing is getting smaller by the day.

The principle is simple: Perform an action, get rewarded and attain new heights:  stuff, power, access and status.  Get a rush of endorphins, an ego boost and bragging rights. We are competitive and territorial by nature and we seek out opportunities to express these traits.  Some of us prefer material possessions,while others are more interested in VIP access. I have been participating in loyalty schemes for years. I make purchases at specific stores with a specific credit card to earn points to get me to my reward goals faster.

A loyalty program does not necessarily have to be a formal card program.  It can simply be a case of visiting the same restaurant where you are friendly with the owner and she rewards you with a free glass of wine or a discount on your meal.

The best loyalty programs have SMART (Specific, measurable, attainable, relevant and time-bound) reward targets.

We are all driven by pain and pleasure stimuli and a good loyalty program is one that is designed to condition our behaviour towards achieving a goal that is aligned with a brand's strategic interests.  Our behavior can be conditioned in a manner similar to what's been described in Ivan Pavlov's famous experiment, where he conditions his dogs to salivate in response to specific stimuli.  This is the same way people can form new habits and adapt our behavior and also one reason why Daily Deal websites like Groupon and Grabaseat are so popular (The other reason being an inability to resist a bargain.)

Now game theory is penetrating our lives in new ways. As Springwise.com puts it:

Mobile gaming can help turn something we should do into something we want to do.

 For example:  http://www.ridekicks.com rewards you for sharing car rides.  The more you share, the more points you earn towards grandiose titles like King of the Road or Captain Planet.  This is an example of Gamification, an idea that some consider to be the future of marketing.