In simple terms, gamification means applying some of the features we enjoy in video games to businesses, or indeed to any non-game-related area. The rationale is that people love playing games; they lose themselves in them for hours on end.
So what makes games so appealing and how could we use this for business? What games offer people, and many real world situations don’t, is this intense competitive environment with constant challenges of trying to move to a new level and complete the next mission, where players get instant feedback, reward, collect points and badges, move up rankings, and see their status increase.
Via Vicki Kossoff @ The Learning Factor