Social Gaming and Incentive Awards: Merch Monday

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Typically our Merchandise Monday posts focus on tangible merchandise rewards. We've talked about ergonomic knives, vacuums with tattoos and even some "technically" intangible awards like phone time and music downloads. This week is a bit different however since we will be diving into even more abstract awards that have become a booming business online.  

Social gaming.

In a recent report from Mashable, over 56 million people are playing social games. You know those Farmville and Mafia Wars that junk up your Facebook news feed? That annoyance has captured the time and purse strings of millions of people. The report estimates that at least one out of every five people over the age of six have played a social game at least once in their life. This form of gaming is evolving from a hobby exclusive to "web geeks" to something for the average person - even those who aren't traditional gamers. Most people who use social games have never played traditional video games (35% according to Mashable's article). 

A Hot "Commodity"

Along with these social games comes the economic part - virtual goods. Virtual goods are a huge form of currency online and generated around $2.2 billion (that's "billion" with a B) in revenue in 2009 alone. You know, 2009...when the economy was in the toilet? Spending for these goods is estimated to hit around $6 billion by 2013, meaning that virtual goods will become an even more popular commodity.

What is a virtual good?

Virtual goods are by definition non-physical objects  that are purchased for use in online communities or online games. For example, in Farmville, users can use real money to buy "coins" in the Farmville world. These coins are used to purchase things in the online store to help further their success in the game, such as buying seeds to grow more virtual crops (which can eventually be resold), animals and buildings. Sure coins have the ability to be earned but why not expedite your success with your wallet? 

These goods aren't limited just to gamers but have other places out in the market. Is it someone's birthday on Facebook? Use your Facebook credit account to purchase them a virtual birthday gift to post up on their wall. These "gifts" were initially free during their introductory period but as usage grew so did cost, making this a very lucrative component of Facebook's business.

Virtual Meets Reality

It was only a matter of time until the virtual world of social games and brick and mortar establishments cross pollinated. Within the last week, Target announced that it will begin selling gift cards for Facebook credits. This business endeavor is expected to make up at least one third of Facebook's revenue. They aren't the first to embark on this path. Back in March, Zynga (creator of social games Farmville and Mafia Wars) announced that it would be selling prepaid game cards at retailers like Best Buy, Game Stop and Target. This puts these Zynga prepaid cards at over 12,800 different locations. What does this mean? Individuals can use their real money to purchase fake online money to use as a birthday card insert or future stocking stuffer. It's an abstract yet booming business.

So what's this have to do with incentive programs?

We've already seen how prepaid credits for social games have entered the gift card market. An obvious first thought would be program participants redeeming for these gift cards in a points-based rewards system. Where things could really take off would be taking out the middle man that is the gift card. What if the points that employees gained in their rewards system at work were transferrable into the virtual world? This method could blur the lines of the "cash vs. noncash" debate seeing how this type of redemption system would be most closely related to a cash reward. 

With that in mind, virtual awards could take things a step further. Instead of using points for "social currency," points would be redeemed for actual virtual goods. For example, in a Farmville setting, instead of redeeming points for "coins," one could redeem points for what those virtual coins would buy (such as seeds for crops buildings etc mentioned above). This method would completely eliminate any middle men of gift cards or virtual currency to truly make this concept more of a "noncash" incentive plan. These redemptions would be great solutions for low-cost gift choices and would help achieving work goals positively affect employee hobbies like gaming. The only way employees would be able to gain more levels and earn more potential on their social games would be to achieve work goals and earn points for those redemptions. 

The market for intangible awards is on the verge of explosion.

Or is it?

What do you all think?

What an iPhone App Can Teach Us About Wellness Incentives

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For those of you who may be a little app nerdy like myself, there's yet another app on the horizon...but it's not what you think.

Wellness incentives are sometimes a touchy subject. Employee wellness is a contributing factor to productivity and engagement in an office. We've talked about wellness incentives before in this post taking a look into how Dunder Mifflin tried a wellness incentive program based on weight loss. The main problem with Dunder Mifflin's incentive was that it rewarded an overall result: weight loss. They wanted their employees to achieve healthy lifestyles in the process. However, what they didn't anticipate was the dangerous steps employees were taking just to win. The failure was a result of the company's failure to reward healthy behaviors. 

GE's new mobile app has changed the thinking in this regard. Their new wellness application - Morsel - applies this behavior modification process in a new and fun way. Everyday the company sends a little "morsel" to each user. These morsels are small little tips to lead a healthier life. They offer small challenges like "don't put any extra salt on what you eat today." GE describes their new app in this way:

“With health and wellness, a little can go a long way. With this in mind, we’ve developed Morsel, a mobile application that helps people get a little bit healthier, every day. By suggesting simple, daily tasks that anyone can do, Morsel empowers you to take control of your well-being, one step at a time. With fun, achievable goals, Morsel makes a healthier lifestyle accessible to everyone.”

Small goals over time do much in modifying behaviors to achieve specific results. Incentive programs - more specifically wellness incentive programs - will ultimately fail if they only focus on the end results. 

What do you think?

Ergonomic Knives? Merchandise Monday

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 A knife is a knife is a knife right? The only thing separating knives is the quality and sharpness of the blade.

Dexter Russel would disagree. They've come to embrace the merger of ergonomics and cutlery with their new DuoGlide knife collection.

The newly released knife collection was developed with consultation from ergonomics professionals and chefs alike. According to the company, these knives create a unique cutting experience. The knife handle and the geometry of the knife itself requires less strength on the users part to cut than with traditional cutlery, easing fatigue when using.

Want more proof? The new knives are approved by the Arthritis Foundation. After personal testing by the foundation, they awarded the DuoGlide with the Ease-of-Use Commendation. The President of Dexter Russel commented on how millions of Americans suffer from arthritis, stemming the research and innovation of a product like this one. He says that "pain should not stop anyone from enjoying cooking and that is what DuoGlide is all about."

According to an article in the August edition of Homeworld Business, the DuoGlide is "designed to position the hand directly over the food, reportedly giving the user more control during cutting while expending less effort. The handles have been created with a soft touch grip intended to accomodate multiple hand positions and provide a custom, comfortable grip."

Ergonomic knives. Who would've thunk it?