Learn how a premier retailer used gamification to elevate staff performance and lift same-store sales by 8.4%.
“Arcade brought the greatest lift in sales to our stores that we’ve seen from any single technology.”
Daniel, the VP of Stores at a publicly traded, multi-billion dollar retailer (so well-known that we cannot name them) wanted to use an innovative strategy called gamification to drive sales at one of the company’s newest retail brands.
Gamification involves transforming the achievement of daily tasks into ‘games’ that employees find incredibly engaging, motivating them to go above and beyond. This strategy is particularly effective for engaging millennial employees who are motivated by game-like experiences more than any other demographic.
Though gamification theory has been around for a decade, retailers have been waiting for the technology necessary to introduce gamification into their day-to-day operations. This technology has finally arrived.
Daniel wanted to use gamification to help his millennial-heavy workforce feel highly motivated every day, not just in peaks and valleys. His ultimate goal: motivating his employees to perform at the highest level.
Daniel needed a way to scale communications as new stores opened at a rapid pace. Communication barriers meant that staff at newly opened stores were struggling to access guidance and information from staff at more established locations. Daniel wanted to break-down these knowledge silos while ensuring that all communication remained professional and secure.
The retailer’s stores were staffed by a primarily millennial demographic. Millennials are notoriously challenging to motivate using traditional methods like cash bonuses. Instead, Daniel wanted to generate a sense of friendly competition between staff, and between brand locations. He wanted to achieve this by introducing game-like elements into the workday, including sales leaderboards, micro-incentives, races to reach sales targets, prizes, and tokens which could be traded for meaningful rewards. However, he needed to do this at scale without increasing the amount of time spent on administration and fulfillment of rewards.
These games also needed to be closely tied to activities that would add value to the store, like providing great customer experiences, making high-ticket sales, or encouraging repeat business.
A rapidly expanding network of stores meant lots of new hires entering the company. These circumstances made it particularly challenging to build a strong and unified culture, as culture is created by the norms and values of tenured employees. Daniel needed a way to incentivize new employees to integrate seamlessly into a strong, focused company culture based around consistent performance, encouragement, recognition, and a high expected level of product and customer understanding. This included new stores, where recent hires may not have the opportunity to learn these values from tenured employees.
Daniel selected Arcade as the best tool to bring gamification to this $10bn retailer.
Arcade replaced impractical and fragmented communication methods with a consolidated, modern and simple chat platform. Store leaders and employees used the platform to keep each other updated on relevant events, communicate inventory numbers, create consistent product displays across stores, and spread best-practices and learnings laterally. Information was able to flow freely between established stores and new stores, greatly decreasing ramp-up times for new employees.
Exciting sales games helped to significantly increase sales staff performance using gamification. Arcade enabled managers to award stores with prizes based on meeting and achieving their daily goals for net revenue and other conversion metrics. Employees were constantly involved in compelling sales competitions, such as the ‘Arcade Power Hour’, which randomly rewarded employees for sales made in a 60 minute period. These events helped to focus and engage employees throughout the day.
Arcade also helped to build relationships and foster a culture of gratitude, respect and a customer-first mentality among employees. Employees were empowered to award each-other at the peer level, with awards linked to random prizes for recipients. This peer recognition was highly scalable, requiring no intervention or admin from managers. Employees frequently awarded their colleagues for culture-building behaviours, such as a tenured employee helping a less experienced employee provide the best possible customer experience.
The Arcade team worked closely with Daniel to rapidly onboard the company’s employees and ensure the company was effectively utilizing the platform. Arcade’s user interface is logical and easy to use, achieving high adoption among employees within just four weeks. The company’s Arcade account manager was also on-hand at all times to answer questions, give advice, and help with every aspect of motivating and engaging employees using Arcade.
Arcade was rigorously tested by a third party to monitor its effects on employee engagement and store performance across three key performance indicators: same store sales, units sold and gross margin. During this test, the results conclusively showed substantial uplift in all three key indicators.
Same store sales increased by 8.4%, units sold increased by 5.5%, and gross margin increased by 7.8%. The third party auditor attributed these increases directly to Arcade rather than to natural variation.
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