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Online games may be banned in Corporate America (at least during work time) but they have actually proven fairly useful for building customer loyalty. How?
Well, companies need to find ways to cater to their power users, who are often similar to gamers. After all, they are passionate; have strong networks; and are not afraid to speak their minds (and spread their messages across the Net).
Some of the companies leveraging this concept include: AT&T (NYSE: T), Car and Driver, Scholastic (NASDAQ:SCHL)and Univision.
Oh, and they are using the technology platform from Lithium.
Of course, the co-founder and CEO of the company, Lyle Fong, is a long-time gamer. With his brother, he started Gamers.com. What's more, his brother won a Ferrari because of his gaming acumen.
As for Lithium, the company got its start when a Dell (NASDAQ: DELL) executive started using Gamers.com. He wondered: why not use the system for Dell's customers?
That was back in 1999.
As of now, Lithium is a powerhouse in its space, with about 100 customers. What's more, last year the company raised $9 million in a Series A round from Shasta Ventures and Emergence Capital Partners.
The Lithium platform – which is web-based – allows for such things like forums, chat, polls and social networking. Other key features include: strong security and integration with customer relationships management (CRM) systems.
"We built this like a game," said Fong, in an interview with me. "Ego and reputation are important. So, we have a system to provide rewards for participation, such as badges."
As for the business model? According to Fong: "We charge on a usage basis. This means that it's in our interest to to grow the community, which helps everyone."
Tom Taulli is the author of various books, including The Complete M&A Handbook
and The Edgar Online Guide to Decoding Financial Statements.. He also operates MergerBook.com.
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