Problem: Much of gamification in the digital world or multiverse has not been enabled in the real world even if it may encourage more spending and higher profits for businesses.
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Solution: Recently, I’ve been thinking quite a bit about gamification. Obviously, one aspect of this is the question of how to take existing applications or technology and make it more game like. However, another line of gamification could be to bring concepts that work well in games into reality. This business would focus on doing this with a variety of different features that have become popular in massive multiplayer online role-playing videogames like Runescape. Currently, the market size of this industry is expected to grow from US $10.32 billion in 2015 to US $26.65 billion by 2025 at a CAGR of 10.2% between 2015 and 2025.
One example I came across of this concept is in “loot boxes.” Packages that you can buy where you are presented with various percentage chances of winning luxury items. One example of these Mystery Box companies is Hybe.com which claims to “Unbox Authentic Products for up to 95% off”. It’s even become popular on YouTube, garnering 52,000 views in certain YouTube channels. While the business is interesting, some argue that it may not even be legal (like Blake Robbins described in his March 15 Tweet).
What’s interesting about this business is that when you buy a box, you have no idea what item you’re going to receive: you just know that you are receiving a box with items valued at the price you paid for your box (as a minimum) and a luxury item price (as a maximum). Of course, the chance of winning the most sought-after item is extremely low, but it encourages users to buy knowing that tat the worst they won’t be losing money by buying a box.
Hybe (and this business) would focus on using gamification psychology to tweak how users shop online by developing new ecosystems and methods of purchasing. As described by Andrew Latham in his recent Medium post,
Video games are the fastest-growing segment of the $1.5 trillion global media business. In 2019, computer games generated $196 billion, which dwarfed the global box office revenue ($43 billion) and recorded music sales ($19 billion).
Financial institutions are now employing the tried and tested tools that have made computer games so successful to attract, educate, and entertain their customers.
These techniques include setting out goals, creating a journey narrative, using leaderboards, providing instant feedback, using an interactive interface, harnessing our competitive spirit, providing guidance and encouragement, and giving rewards.
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Financial institutions foment loyalty, engagement, and consumption by allowing users to earn rewards, get recognition, and achieve new levels through the use of their products and services.
This business would start in a way similar to Hybe by bringing gamification into the real-world through a niche then grow to tangential industries.
Monetization: Sales of these loot boxes, or consulting fees for taking existing businesses and bringing metaverse gaming into the real world.
Contributed by: Michael Bervell (Billion Dollar Startup Ideas)