{"id":22026,"date":"2020-01-22T12:23:30","date_gmt":"2020-01-22T11:23:30","guid":{"rendered":"https:\/\/www.intellias.com\/?p=22026"},"modified":"2023-09-05T12:25:13","modified_gmt":"2023-09-05T10:25:13","slug":"how-utilities-use-gamification-to-engage-customers-and-change-consumption-behavior","status":"publish","type":"blog","link":"https:\/\/intellias.com\/how-utilities-use-gamification-to-engage-customers-and-change-consumption-behavior\/","title":{"rendered":"How Utilities Use Gamification to Engage Customers and Change Consumption Behavior"},"content":{"rendered":"

Everyone has played some sort of game at least once. Racing games, mobile games, shooters \u2014 games come in all shapes and sizes these days. But what about games in the business environment: Is there a place for competition and reward? Yes, there is. Business is all about competition, rewards, and incentives. Gamification, or game-like tools applied to non-gaming systems, has much to offer in terms of helping businesses meet their goals. Today, we\u2019ll have a closer look at gamification principles applied by utilities because of pressing issues, including excessive energy consumption.<\/p>\n

Energy gamification for utilities means an entertainment-driven approach to solving serious environmental problems. And the problems are serious indeed. The human appetite for natural resources, including those used to produce electricity, is enormous. The sad thing is that these resources are limited and our consumption is not sustainable. Badges, labels, and points to save the planet? It\u2019s not serious, you might say. We\u2019ll persuade you that it\u2019s all possible.<\/p>\n

First things first: What is gamification?<\/h2>\n

Let\u2019s compare two scenarios. Imagine you live in a neighborhood that has friendly relations with the energy service provider. Your service provider needs to reduce energy consumption in your region and informs you of that. You agree that saving energy is a good idea and figure you might give it a try someday. Meanwhile, you keep on diligently paying your bills. Under another scenario, you\u2019re informed that there\u2019s an energy-saving competition in your neighborhood. In three months, the utility provider will choose the top three customers who have managed to reduce their energy consumption the most. On top of that, if you\u2019re actively promoting the initiative on social media, you\u2019ll get a discount on your bills for the next three months. Do you feel the difference? The second scenario uses gamification.<\/p>\n

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The value for the global gamification market in 2018 comprised $ 6.8 billion. It\u2019s projected to grow at a CAGR of 32% to $40 billion by 2024.<\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\tTechSci Research<\/span> <\/span>\n\t\t\t\t<\/small>\n\t\t\t<\/blockquote>\n\t\t<\/section>\n

The main goal of gamification is to improve user engagement and motivation. Typical gamification elements are points, timers, badges, and leaderboards. All of these are incorporated into people\u2019s activities. Gamified applications appeal to people\u2019s competitiveness, desire to learn, and need to socialize.<\/p>\n

Employees\u2019 feedback on gamification in operations<\/b>
\n\"How
\nFinancesOnline Review for Business<\/a> \u2013 47 Gamification Statistics You Must Know: 2020 Market Share Analysis & Data<\/a><\/em><\/p>\n

Energy gamification for utilities: Is saving energy as easy as playing a game?<\/h2>\n

At the governmental level, stakeholders are straightforward about the situation with energy consumption. On a global scale, governments either call for a reduction in the use of electricity or an increase in utility costs. Gamification can benefit utility providers while preventing a backlash from consumers. So yes, saving energy can be as easy as playing games. Here\u2019s why.<\/p>\n

A typical example of a gamified electricity-saving app<\/h3>\n

System architecture of a utility gamification solution<\/b>
\n\"How
\nScienceDirect<\/a> \u2013 Gamification-based framework for engagement of residential customers in energy applications<\/a><\/em><\/p>\n

Here are some gamification techniques for the utility industry. A typical game-like solution for utilities must get the whole household involved in the competition. The utility gamification can be played against another household or between members of the same household. Either way, the goal is to save energy. Users can get points for completing particular tasks \u2014 for instance, turning off devices instead of leaving them on standby. Or running the washing machine and dishwasher only when they\u2019re full and using energy-efficient modes. The more energy-efficient actions, the more points.<\/p>\n

Now it\u2019s time to compare the results. Smart meters help users compare daily, weekly, or monthly electricity consumption data against historical records and team members\u2019 performance. In this way, a smart meter is a fundamental element of the gamification concept. Household members can interact via social media in return for more points or badges. And, of course, there are rewards: a discount on an electricity bill, gifts for the household, or even support for a charity initiative.<\/p>\n

Such a gamification scenario works well for addressing problems like a strain on the power grid. In summer, when air conditioners operate at full capacity, electricity demand can exert a grid\u2019s capacity. The same happens in winter, when heating systems increase electricity or gas consumption. Below is a practical case showing how gamification helps manage energy demand during peak hours.<\/p>\n

How utility gamification helped lower energy consumption peaks in three EU countries<\/h3>\n

A 15% reduction in energy costs and 30% lower carbon dioxide emissions were the stunning results of gamification for utility customers piloted in Helsinki, Nice, and Vienna. The gamification-based solutions for utilities consisted of an energy planning tool for utility operators and an application for consumers. The successful campaign managed to attract 80% of households in those three cities.<\/p>\n

The CITYOPT Planning Tool<\/a> had two goals with gamification for utility customers. First, to reduce electricity consumption by households during peak times, especially in winter. Second, to prevent problems with electricity production in the future. The intuitive and simple game-like app alerted users one day before a peak in energy consumption. Customers were then able to devise their own energy-saving strategies. The app suggested possible ways to complete the mission. Those who saved energy, as detected by smart meters, were rewarded with points. Later, participants could donate those points for community projects of their choice.<\/p>\n

CITYOPT was a win-win project:<\/b><\/p>\n