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Gamification in B2B: Good fun, healthy savings

By Bryan Pearson, LoyaltyOne

Bryan Pearson LoyaltyOne

To achieve your goals, sometimes you need to try something completely new and different.

That was the case with Premier Healthcare Exchange, a provider of one-stop cost-management services for health-care companies. PHX delivers cost savings to health-care clients in a relationship-driven industry. The nature of this work requires that PHX build strong connections, particularly with frontline employees.

PHX was committed to improving client knowledge of its products and services, while also engendering loyalty. So it created an entirely new platform that combines education and incentives.

PHX created a loyalty program for its B2B clients in 2012. The program needed to get customers to participate in educational activities while rewarding involvement. This gamification model seemed to work well in the B2C loyalty space.

Gamification was, however, still relatively new. No such B2B program existed in the health-care industry. This gave PHX the benefit of the lead. It also presented a challenge. PHX needed to create something new.

After a year of testing, in January 2013, PHX launched the “U” Premier Loyalty Program. The online initiative applies elements of gaming to PHX’s own cost-management software.

PHX based “U” Premier rewards on three measures: client tenure, the number of claims processed and the completion of activities such as reading a tutorial or answering a survey.

Points accumulate toward silver, gold, diamond and premier levels. Progress is measured against a predetermined goal. Users track their performance on a dashboard. One tutorial could be worth 200 points, for example. One hundred points are valued at $1.

Each level is assigned a number of privileges, such as PHX-sponsored lunches or tickets to special activities. Points can be redeemed for gift cards or put toward charitable donations.

Redemptions occur annually in January. From an accounting standpoint, this allows PHX to accurately estimate the value of the points. Points not redeemed are donated to charity.

PHX can use the new client data to fine-tune the program and reinforce desired behaviors. A few months after the launch, PHX added activities so participants had more opportunities to gain points. This led to even higher levels of engagement.

The results have been outstanding. In its first two months, the “U” Premier program exceeded expectations and received enthusiastic reviews.

Among the initial achievements:

  • Client participation at more than 46%.
  • Almost 3 million points awarded across 20 different activities.
  • Increased user proficiency with PHX claims processing and educational services, enabling PHX employees to be more efficient and better able to serve customers.
  • Increased user awareness of business benefits.
  • Creation of a new community of users who interact through activities.

PHX plans to launch a second phase, geared for the reinsurer channel, in the third quarter of 2013.

Of all the “U” Premier Loyalty Program features, what’s best is its flexibility. It does not put a dollar sign on loyalty, but recognizes it based on client endurance and activity.

Bryan Pearson is president and CEO of LoyaltyOne. He is author of bestselling book The Loyalty Leap: Turning Customer Information into Customer Intimacy and new release The Loyalty Leap for B2B. He is an internationally recognized expert and author in the fields of enterprise loyalty and coalition marketing. To learn more, visit pearson4loyalty.com and follow him on Twitter: @Pearson4loyalty.

 
Comments (1)
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Barbara
Posted Sep 19, 2013 at 10:12 AM

Great new case study. I wrote an ebook on this topic and did a webinar for hr.com. It is cutting edge. Thanks for sharing.

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