Virtual Goodies

Have you heard of Cashstar, a company that allows people to send gift cards via email? It's a perfect innovation for those of us who hate presenting our gifts in person!  But now they've gone and taken the next leap in antisocial-social engagement.  They've created a promo that lets you buy the next round of beers for your buddies... via Facebook.

OK, there are a few catches.  The beer has to be bought at T.G.I. Friday's.  And you aren't actually buying beer, you are gifting a $5 redeemable coupon for beer after you "Like" the Friday's Facebook fan page.  But we won't let you complain. It's free beer!

The idea of marrying a physical gift to something virtual is not a new one. Webkinz, founded in 2005, gives a virtual avatar to each of its new (physical) stuffed animal owners.   Kiip, an advertising startup, "rewards" players in mobile games with promotional freebies, like bags of chips and beauty care samples.  There are other companies, certainly, doing stuff like this — or at least considering it.

As the Gagaville expansion within Farmville ends, one has to wonder if the collaboration between Zynga and Lady Gaga was a success.  Did Gagaville promote Farmville to new and untapped markets?  Did it help Lady Gaga sell more records? 

According to Appdata.com, Farmville experienced a sharp spike in daily active visitors a few days after the release of Gagaville, but the trend hasn’t continued.  Currently, a smaller percentage of Farmville users are returning on a daily basis than before the promotion.  And Farmville, at roughly 11 million users, is well below its all-time-high of 32 million.  A bit more lasting success has come to Lady Gaga.  Her new album, Born This Way, has experienced steady chart-topping sales (even in light of precipitous week-over-week drops), but this may be credited to Amazon’s 99-cent promotion, and her success probably would have happened with no promotion at all.  But even if the odd partnership had little or no effect on Gaga’s sales, it proved to be a major flop for Farmville.

It is no surprise that the rise of virtual goods baffles a lot of people.  Selling something that has no material value (though you could debate this) can seem like a rotten trade.  And with stories coming out about gaming addicts and slave labor used for virtual gold farming in China, perhaps there is real reason to find virtual worlds distasteful.  

But it doesn't have to be that way.  Zynga uses operant conditioning (the psychological trick they have honed masterfully to keep us watering our crops each day) for mundane, greedy reasons.  Why not harness those same tactics to encourage people to make the world a better place?

Reward folks with virtual goods for doing something socially beneficial.  You help an old lady across the street, she rewards you with a virtual badge.  You write an article on the local little league for your hometown newspaper, you get a unique shop to place in your Cityville city.

Zombie Lane, Digital Chocolate's newest hit, has many of the great features we look for in social games.  Gameplay is engaging.  The diversity of actions you can take to use your energy points is high.  You can play for long periods of time without spending too much on premium items.  But most important of all, unlike Zynga games, the premium goods within Zombie Lane are more than just decoration.  

 There are only a few premium items you can purchase: the standard instant energy restoration, three advanced weapons for whacking zombies, and three premium decorations that give extra daily energy or coins.  The most expensive item costs 30 Facebook Credits ($3).  Though more premium goods are sure to come, the scarcity of premium content shows that Digital Chocolate cares about creating a truly enjoyable user experience for non-payers.  

After 70 million Playstation Network user accounts got hacked last month, Sony announced its "we so sorry, please don't hate us" package.  Along with coupons for a free Awesome Blossom at Chili's, Sony gave away boatloads of virtual goods. But why is Sony enticing users to hop back onboard while it is still getting hacked?  Oh, who cares... bring on the free virtuals!  Forgive the sarcasm.  I'm a big fan of virtual goods and free downloadable content.  But I imagine most people would prefer tangible consolation.

Still, this is a high point for virtual goods.  If users accept intangible gifts as apologies, it could lead to a new strategy for customer satisfaction in and out of the interactive entertainment industry.  Retailers could offer refunds in Facebook Credits.  Coupons could give free Cityville cash as incentive for purchase.  The pinnacle of virtual goods will be when a lawsuit settles for World of Warcraft gold in preference to U.S. dollars.