Rajat Paharia - Loyalty 3.0: How to Revolutionize Customer and Employee Engagement with Big Data and Gamification

Praise for Loyalty 3.0

Relationships are the single greatest asset for all organizations. Relationships with customers, relationships with employees, relationships with partners. In Loyalty 3.0, Rajat Paharia reveals the new science of relationship building through big data and gamification.

Tim Brown, CEO, IDEO

The journey to Loyalty 3.0 is real. Rajats vision shows why right time relevancy and context will transform how organizations engage with customers and truly craft relationships.

R. Ray Wang, Principal Analyst and CEO at Constellation Research

Adoption is a critical component when creating an exceptional customer experience or smarter workforce, and gamification has proven to be a powerful driver for success. The insights Rajat shares in Loyalty 3.0 will help guide the next wave of deeper relationships across the enterprise.

Sandy Carter, IBM Vice President, Social Business Evangelism and Sales

Loyalty 3.0 is filled with major insights and does a brilliant job of grounding the reader in fundamental concepts around motivation, big data, and gamificationbuilding on these concepts through real-world case studies that bring the combinations to life. It finishes with actionable ideas and next steps that enable you to test and operationalize these ideas in your own workplace and personal life.

Brad Smith, CEO, Intuit

A fascinating insight into how companies are exploiting big data.

Mark Read, CEO, WPP Digital

Rajat pioneered the business use of big data and game mechanics to transform the customer experience. A decade before anyone else, he saw that the same techniques that video game designers had used for yearsfast feedback, badges, competition, goals, and leveling upwere also incredibly powerful for motivating behavior outside of games, and an industry was born. This book shares his secrets.

Clara Shih, CEO of Hearsay Social,
author of The Facebook Era ,
and board member at Starbucks

Rajat Paharia comprehensively explains how to create loyalty in the modern world full of data and connectivity. If you want to learn how to motivate and inspire employees, you must read this book.

Dave Kerpen, New York Times bestselling author
of Likeable Social Media and Likeable Business

In this powerful and groundbreaking book, Rajat Paharia clearly demonstrates how big data, motivation, and gamification can be utilized to create true engagement and loyalty. We believe Loyalty 3.0 will be a game changer for our associates and guests.

Ray Bennett, Chief Lodging Services Officer,
Marriott International

Copyright 2013 by Rajat Paharia. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

ISBN: 978-0-07-181338-9
MHID: 0-07-181338-1

The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-181337-2, MHID: 0-07-181337-3.

All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps.

McGraw-Hill Education eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please e-mail us at bulksales@mheducation.com.

TERMS OF USE

This is a copyrighted work and McGraw-Hill Education and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill Educations prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms.

THE WORK IS PROVIDED AS IS. McGRAW-HILL EDUCATION AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill Education and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill Education nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill Education has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill Education and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise.

Disclosures

The following companies named in this book are (or have been) either a customer or a partner of Bunchball, directly or indirectly:

Adobe

Bluewolf

BOX

Chiquita Brands

Comcast

CrowdFlower

Eloqua

Ford of Canada

HP

HopeLab

IBM

Intuit

Jive Software

Kraft Canada

LiveOps

Maritz Canada

Microsoft

MTV

NBCUniversal

Oracle

Redding.com

Right Guard

Salesforce.com

SAP

SolarWinds

Tableau

Universal Studios

USA Network

Warner Bros.

Wendys

For More Information

Visit the Loyalty 3.0 website at www.loyalty30.com.

To Riley, Jake, Evan, and Laura

Contents

Acknowledgments

First and foremost, Id like to thank Bunchballs customers, employees, partners, advisers, and investors. Without you and your support, none of this would have been possible.

Our customers have always been forward-thinkers who understand that engagement, motivation, and loyalty are key competitive advantages in their industries. Im honored that weve been able to earn their business, and every day we get out of bed thinking about how to serve them better. Id like to thank them all, particularly the ones that contributed to the case studies in this book.

I love going to work every day because I work with amazing people doing work that were proud of, making our customers happy, and solving challenging problems together. To everyone who has worked at Bunchball in the past, is there now, and will join us in the futureyou have my undying gratitude. I know that you get to vote with your feet, and Im grateful that youve chosen to direct your feet here and contribute to our vision. Id like to explicitly thank my current crop of MVPs (and BFFs), including Christian Battaglia, Alexis Bley, Alyssa Bentley, Michael Bosworth, Gary Chavez, Kyle Clark, Joseph Cole, Keith Conley, Jim Cumella, Caitlin Donaldson, Danny Drobnitch, Sharif Elgamal, Angelina Elhassan, John Evangelista, Joe Fisher, Matt Foster, Kevin Freitas, Sudhanshu Gaur, Mitch Gilbert, Katherine Heisler, Mark Herstek, Tina Hou, Deepti Illa, Caroline Japic, Jackie Jones, Ken Jones, Dan Katz, Barry Kirk, Andrew Kirpalani, Molly Kittle, Mary Lahlouh, Vivian Lin, Lucy Lopez, Kasey McCurdy, Rob Mullany, Jim Norman-din, Purvi Patel, Stacy Rademacher, Robert Richards, Ramiro Rodriguez, Jim Scullion, Anupam Singhal, Scott Sorge, Kevin Spier, Chris Sullivan, Ed Van Petten, Aparna Vasireddi, Yiran Wang, Matthew Williams, and Arjan van Ham.