The discussion on extrinsic and intrinsic motivation is a hot topic in the gamification world and is really the driving force behind making gamified systems work. While there have been studies done that show that extrinsic motivators may hamper intrinsic motivation over time, TangoCard is a new startup that believes real extrinsic rewards are still a vital part to gamification systems.
If you look at the gamification industry, it is typically comprised of gamification vendors/platforms or consulting services. TangoCard has found itself filling a niche in the gamification industry as being a rewards provider. TangoCard clients can connect their service easily to TangoCard’s API and begin distributing real rewards in a single day. Once connected, users can redeem their Tango points for physical or digital gift cards. New entrants to the gamification/loyalty space can quickly use TangoCard to connect with brands and quickly supply prizes. With huge clients like Microsoft Bing Rewards, FedEx, and now exclusively, Beintoo, TangoCard is the middle-man between gamification/loyalty platforms and physical consumer products. The crazy part? They provide this service all for free.
Traditional reward providers such as those in the gift card industry boggle down consumers and the brands with loads of transaction/balance fees and profiting off of unused gift cards. TangoCard has skipped this business model and approached the rewards space with an emphasis of working with the best and most attractive brands in the country, like Amazon, iTunes, and Starbucks. By carefully selecting and curating the brands they work with, TangoCard focuses on establishing direct relationships with brands in order to make money. TangoCard’s services are of no charge to anyone who uses it . And even though TangoCard’s business model emphasizes on rewards with extrinsic motivators, their partnerships with nine non-profit organizations, including the USO and Habitat for Humanity, means TangoCard has a good amount of intrinsic motivators baked into their system for the good samaritans.
As a small startup based in Seattle with another large portal to gamification nearby, TangoCard’s new niche in the gamification industry is evidence of gamification’s continued growth as a whole. Something interesting to note is that while most of TangoCard’s client base is comprised of loyalty programs, gamification is also their fastest growing client base, possibly indicating gamification’s rise into loyalty programs. TangoCard’s unique business model coupled with strong relationships with brands and non-profit organizations has really set them up to be a unique player in this space and investors have definitely noticed as well.
I would venture to say that if TangoCard’s partnerships continue to expand so will their ability to target individual users for their clients. The better they know their users, the better they can target rewards, making them more effective in the long term and feel less Extrins’ icky.