I’m prepping for a FailChat about gamification this evening http://t.co/Y55aztu

Charles Hudson, the moderator, just sent me a set of interesting questions, including this one:

Loyalty programs, reward programs, etc have been around before we had the term “gamification” - how are the things we’re talking about now different from classic concepts of loyalty or other usage incentive systems?

I see a lot of confusion between loyalty programs and games — partly because the two areas share a common set of mechanics — Redeemable Points, Levels, Rewards, Collectibles, and Premium Services for Big Spenders.

One fundamental DIFFERENCE between loyalty and games revolves around skill, learning and mastery (or lack thereof). As you progress within a loyalty/rewards program, there’s no real skill involved - you’re learning to “play the points game” and maximize your points. It’s not about engagement - it’s about sticking around and spending/consuming.

OTOH when you progress in a (good) game, you’re learning something - you’re developing some cognitive, social or perceptual skill. That’s part of what makes games so compelling - the sense of getting better at something, of being engaged and shaped by the experience.

Here’s a VENN diagram showing some common mechanics is Gaming and Loyalty. I’ve also thrown in Cialdini’s Influence Principles, because they’re so common and central in social gaming.

What you do think? Can you make a better version of this diagram? Ever seen something similar? Let me know.