Critical Factors for Effective Variable Reward Systems

Key Insight

Designing effective variable reward systems requires careful alignment with user needs, as they are not a universal solution. Mahalo.com failed to sustain user engagement despite offering variable monetary rewards for Q&A because the reward did not genuinely satisfy user motivations for using such a platform; users found earning an hourly wage more efficient for monetary gain. Conversely, Quora succeeded by offering social rewards like recognition from peers, which matched users' desire for validation. Gamification, through points and badges, only works if it addresses a real user 'itch' and integrates meaningfully with the product's core value.

Maintaining user autonomy is crucial, as any perceived threat to it can trigger 'reactance,' causing users to resist or rebel against desired behaviors. Quora learned this when its 'views' feature, which automatically revealed users' browsing identities, sparked a user revolt due to the loss of anonymity. Research shows that explicitly affirming a person's freedom of choice, such as using the phrase 'but you are free to accept or refuse,' can double compliance by disarming this instinctive rejection. Products that feel coercive, like MyFitnessPal's strict calorie tracking, often lead to user abandonment, while those like Fitocracy, which leverage existing desired behaviors and offer choice, foster engagement by making users *want* to participate.

Designers must also be aware of 'finite variability,' where experiences become predictable and lose appeal over time. A TV series like 'Breaking Bad' captivates viewers but eventually concludes, and its rewatch value diminishes once the plot is known. Similarly, games like 'FarmVille' with re-skinned versions quickly bored users as their mechanics became rote. In contrast, 'infinite variability' sustains user interest by ensuring continuous novelty, often through user-generated content or complex social interactions. Platforms like World of Warcraft (due to other players' unpredictable actions) or Dribbble, YouTube, Facebook, and Twitter (due to endless user contributions) exemplify products that maintain engagement over extended periods by offering a constantly changing experience.