BLOG/SALES GAMIFICATION WORKS IF YOU FOLLOW THE SCIENCE (AND AVOID THESE MISTAKES)

Sales Gamification Works If You Follow the Science (and Avoid These Mistakes)

Author avatar
Sarah Donahoo
6 min Read
19 February, 2025

Sales gamification taps into natural motivators

Why do people chase loyalty points, grind through video games, or push themselves in fitness challenges? The answer lies in motivation mechanics - something sales gamification taps into with remarkable success. The right system can transform outreach into a competition, engagement into a habit, and performance into a measurable win.

People enjoying the excitement of competition, similar to motivation triggered by sales gamification software
Arcades, slots, and sales gamification: all about that dopamine hit

This is not just theory. Real-world case studies prove how gamification drives immediate, tangible results in sales teams.

As Steve Claydon, founder of Outbound Game, puts it, "Why don’t we just physically show that you are getting a little bit of coins every time you make a call, and you get more coins if you book a meeting?"

This simple shift helped sales reps overcome their hesitation and start taking massive action. Claydon's team introduced virtual coin rewards for everyday sales tasks- like making calls, booking meetings, or sending personalized videos - and saw an immediate shift in behavior:

Steve Claydon explains how a simple gamification tweak helped sales teams take massive action. Watch the full conversation with Pulse here.

A report by Spinify highlights that 90% of employees feel more motivated at work when gamification is employed.

And studies from McKinsey suggest that gamified incentive structures can increase sales performance by as much as 20% when implemented effectively. Competition, rewards, and recognition are deeply ingrained in how people set goals and push themselves to achieve.

But here’s the thing: gamification must do more than just dangle commissions or annual bonuses (though we’re not knocking the power of a good monetary incentive). When companies apply gamification to prospecting tasks, they often see a surge in both outreach volume and quality. Reps engage more when they can track their progress in real time and earn rewards for consistent effort because seeing momentum builds more momentum.

At its core, sales gamification works because it introduces clear objectives, immediate feedback, and a sense of achievement. As Claydon explains, many sales teams struggle with motivation, and gamification provides a framework that turns mundane tasks into engaging challenges:

"We just created the right environment, we fueled it with the right rewards, and all of a sudden, people overcame their fear and started taking massive action."

His team saw a sales group go from never sending a personalized video in 10 years to sending 126 in a single day, just by adding gamification mechanics and rewards.

Research by Gartner predicts that by 2025, 70% of businesses across industries like sales, customer service, and human resources will adopt some form of gamification to improve employee performance and engagement. The global gamification market is also projected to grow at a CAGR of 12.9% between 2021-2025, signaling widespread adoption.

When done right, it triggers both intrinsic motivation (the drive to improve and succeed) and extrinsic motivation (rewards, recognition, and incentives). But gamification isn’t a silver bullet. Poorly designed systems can feel forced, lead to burnout, or create unhealthy competition that undermines teamwork.

Understanding what makes gamification effective is key to ensuring it actually improves performance rather than becoming a workplace distraction.

What makes gamification work?

Gamification works because it taps into what naturally drives people - competition, achievement, and rewards.

The most effective systems rely on these key principles:

  • Clear and attainable goals – Sales teams need structured, achievable milestones that don’t feel arbitrary. Stretch goals are great, but impossible targets kill motivation.
  • Real-time feedback – Immediate reinforcement keeps engagement high. Whether it’s progress tracking or leaderboard updates, sales reps should always know where they stand.
  • Meaningful rewards – Not all rewards are created equal. Points and badges can be motivating, but they work best when tied to tangible incentives like bonuses, perks, or public recognition.
  • Healthy competition – Competition can drive performance, but excessive pressure or poorly structured leaderboards can create a cutthroat culture that backfires.
  • Variety and engagement – Gamification isn’t just about stacking points. Mixing in team-based challenges, limited-time contests, and peer recognition can keep engagement fresh and prevent fatigue.
Sales gamification leaderboard and dashboard example from Plecto
Plecto’s just one example - their sales leaderboards and dashboards show how real-time recognition drives motivation.

When sales gamification fails

Gamification that feels forced or unfair can have the opposite of its intended effect. Companies using game mechanics experience an average annual net gain of 4.1% in revenue, highlighting the impact of well-executed gamification strategies.

According to a report by TalentLMS, 89% of employees say that gamification makes them feel more productive, but ineffective or poorly structured gamification systems can lead to disengagement.

Sales teams disengage when leaderboards are dominated by the same top performers, when the rules aren’t transparent, or when rewards feel out of reach. If gamification is viewed as a gimmick rather than a meaningful part of company culture, participation drops off quickly.

One common mistake is turning sales into a winner-takes-all contest, where the same top performers dominate while everyone else checks out. A smarter approach blends individual incentives with team-based challenges, ensuring that collaboration and sustained engagement drive results, not just cutthroat competition.

As Claydon points out, the best gamification strategies don’t pit reps against each other; they introduce creative ways to share engagement, like team-based challenges or referral incentives.

"We found that when companies gamify activities beyond just sales numbers - like rewarding collaboration, creative outreach, or even referrals - the results go through the roof. It’s about creating an environment where people genuinely want to take action."

Claydon shared an example of this in action:

"A company ran a recruitment game where they were struggling to find key talent. They put up a game for the entire company, offering coins for referring a mate for a job interview and huge coins for successful hires. Suddenly, every employee in the organization became a recruiter - and it worked like a treat."

This kind of creative application of gamification shows how it can extend beyond sales to impact broader business goals. While ranking sales reps can drive performance, it can also discourage collaboration. A balanced approach includes team-based incentives and recognition for progress rather than just raw numbers.

How digital signage makes gamification more engaging

The way sales teams interact with gamification tools is just as important as the mechanics themselves. A well-designed system can still fall flat if recognition and progress tracking happen in isolation, buried inside dashboards that sales reps rarely check.

This is where digital signage can add value.

Digital signage displaying a sales leaderboard with rankings and achievements
When wins are on display, motivation isn’t optional - it’s inevitable!

Recognition drives performance - if no one sees a win, it might as well not have happened. Claydon’s philosophy behind Outbound Game emphasizes that visibility and recognition fuel motivation, turning everyday efforts into meaningful milestones that keep teams engaged:

"Public celebrations of success - whether it’s leaderboards, audio or visual indicators, or automated badges - create a dopamine surge that keeps people engaged."

Scattered notifications and emails get lost in the daily noise. Instead, companies can make gamification a visible, dynamic force with live leaderboards, automated recognition messages, and interactive TV dashboards. These tools create an ongoing, real-time motivator that keeps sales teams engaged and hungry for progress.

When leaderboards, achievements, and team milestones light up office screens, they reinforce positive behaviors and maintain momentum. It’s the same psychology that makes arcade games so addictive: instant feedback, visible rewards, and the thrill of friendly competition.

What happens when you really commit to data visibility at work? Nordward - Scandinavia's biggest seafood wholesaler - has some thoughts.

And the impact extends beyond just motivation. Aberdeen Group research suggests that fully engaged customers generate 37% more annual revenue in retail banking, proving how real-time engagement drives business results. When progress is visible throughout the workplace, it reinforces engagement without requiring reps to manually check in on their performance.

Making gamification part of company culture

For gamification to truly work, it can’t be a one-off initiative. It has to be woven into the company culture. When achievement is consistently recognized and effort is rewarded, motivation becomes self-sustaining.

Digital signage helps reinforce this by making success impossible to overlook. Instead of burying recognition in dashboards or quarterly reports, companies can turn every milestone into a shared experience - one that keeps the entire sales team engaged, motivated, and striving for the next win.

The entire Nordward org has seen results! Operations Manager Chris Dassa confirms.

Get in touch with Fugo

Struggling to keep sales momentum high? With Fugo, you can display live leaderboards, track incentives, and celebrate wins where they matter - right on your office TV screens.

Fugo can showcase data from the sales software, gamification tools, and workplace tech you already rely on, helping you explore new ways to make performance tracking and achievements more visible and engaging.

If you're considering ways to extend your existing tools to office screens, let's talk about what’s possible! Book a discovery call with us to explore how digital signage can enhance your gamification strategy.

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