Spinning the Wheel: The Effectiveness of Gamification in Service Recovery

Abstract

This research offers insights into the efficacy of gamification in a failure-recovery context, that is, providing recovery through a gamified experience. Using one field study and three online experiments across different contexts (i.e., retail, restaurant, gym, and hotel), we show that a gamified recovery (i.e., compensation offered through a spin-the-wheel game) can have a positive effect on recovery satisfaction. This effect is mediated by the perceived enjoyment of the game and is moderated by customer choice, failure severity, compensation level, and time pressure. Specifically, we find that gamification has a positive recovery effect when customers are offered a choice, when the failure is mild, when customers receive full compensation or overcompensation (i.e., when they experience a sense of winning), and when they do not face time pressure. However, gamification can backfire and have a negative effect when a failure is severe, when customers receive only partial compensation (i.e., when they experience a sense of loss), and when they face time pressure. Finally, a single-paper meta-analysis provides aggregated evidence of these effects. For managers, our findings provide initial evidence of the usefulness of this recovery strategy and explain how it should be implemented.