Gamification isn’t a dying fad, companies just don’t understand the concept well enough to make it work to their advantage, according to a new study by Forrester Research.

The report found that misconceptions—including that gamification is new and that it isn’t about the game and all about game mechanics—are forcing marketers to question the user engagement technique rather than finding innovative ways to get the most out of it.

Forrester says that companies investing in gamification need to know who their audience is and what it finds valuable, determine its business objectives and chart an action plan to reach them, and use an “engagement loop to connect user motivations to those actions.”

The research firm isn’t alone in believing that gamers still provide a viable marketing opportunity. Fast Company cites skyrocketing engagement on mobile gaming as one reason gamification marketers shouldn’t give up just yet. Consumers spend an average of two hours a day on apps, including games, the magazine reported. The key for businesses is to incorporate “some aspect of play and fun to entertain customers or members, keeping them engaged and more likely to purchase,” much like Verizon did when it revamped its strategy, leading consumers spending more time on its social website and an increase in page views.

However, not all data supports companies’ further involvement in gamification. The technology research firm Gartner released a study in 2012 that stated “obvious game mechanics could start feeling clunky within a couple of years.” The firm predicted that 80 percent of current gamification systems will fail to meet business objectives.

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