Building a Reward System in Mobile Apps: Best Practices for Gamification

In the world of mobile apps, getting users is one thing, keeping them is another. A thoughtfully crafted app reward system design can bridge the gap. It gives users a reason to stay, engage, and return. Whether it’s a point system app or in-app rewards, the goal is clear: make users feel valued. 

This guide will show you how to build a well-designed reward system that works, backed by examples, industry insights, and practical tips. Let’s dive into the strategies and ideas you can use to create a reward system that your users will actually enjoy.
 

What is a Reward System?

At its core, a reward system is about recognition. Users take actions, and you acknowledge those actions with rewards — points, discounts, badges, or exclusive perks. It’s simple psychology: people love to feel appreciated.

Think about it. Why do loyalty cards work so well? Every stamp or point is a little "thank you" that keeps customers coming back. Apps do the same but in a digital space.
 

Why Do You Need a Reward System?
 

Because users won’t stay without one. Harsh, but true. A well-thought-out app reward system creates a relationship. It’s not just about rewards; it’s about trust.

Imagine this:

• A fitness app that gives badges for milestones reached. Simple? Yes. Effective? Absolutely.
• A shopping app where users earn points for every dollar spent. They’re more likely to return to redeem those points.

How to Create a Reward System That Engages and Retains Users
 

Crafting a reward system requires more than assigning points or badges. It’s about creating meaningful experiences that align with your app’s purpose and user behavior. Here’s a step-by-step guide enriched with examples from successful gamification projects to help you design a reward system that works.

1. Start with Clear Goals

Before diving into design, identify what you want your reward system to achieve:

• Is it boosting app engagement?
• Increasing in-app purchases?
• Building brand loyalty?

A clear goal keeps the system focused. For example, Carrefour used gamification in their app to enhance user loyalty by incorporating interactive stories and rewards tied to shopping behaviors. This strategic alignment between rewards and user actions kept their audience engaged while driving business outcomes.

2. Understand Your Audience

A reward system is only effective if it resonates with your users. Research their preferences, motivations, and habits:

• Do they value tangible rewards, like discounts?
• Are they driven by competition and achievement?
• Do they respond to social causes or shared goals?

For instance, Dodo Brands designed the “Tails” game to combine user engagement with social impact. Players participated in a fun in-app game while contributing to animal shelters — a reward that appealed to both their emotions and their values.

3. Choose the Right Reward Structure

Select a format that matches your app’s purpose and audience:

• Point System App: Users earn points for actions and redeem them for rewards. Ideal for e-commerce or loyalty apps.
• Tiered Rewards: Encourage users to progress through levels for increasing benefits, suitable for apps with long-term engagement goals.
• Gamification Rewards: Add interactive or playful elements to make rewards more engaging.

Example: Tele2 added a nostalgic game to their app, allowing users to earn rewards through gameplay. This gamified experience resulted in a 40-50% increase in app engagement.

4. Keep the Process Transparent

Users should know exactly how to earn and redeem rewards. Clear rules build trust and reduce frustration:

• Define point values or actions required.
• Offer a visual progress bar or tracker within the app.
• Clearly explain how and when rewards can be redeemed.

5. Make Rewards Meaningful

Generic rewards won’t excite your audience. Tailor them to your app’s core value proposition:

• In a fitness app, offer free workouts or exclusive badges for hitting milestones.
• For a retail app, provide discounts, free products, or priority access to sales.

Popular Reward System Mechanics

Now that you have your goals set and your users in mind, let's explore the building blocks of a compelling reward system:

Points

The cornerstone of many reward systems, points offer a simple and universally understood way to track progress. Users earn points for completing tasks within the app, such as finishing a workout or logging daily entries. The value of points needs careful consideration. Awarding too few points can feel discouraging, while showering users with points can cheapen their value. Strike a balance to keep users motivated and working towards their reward goals.

Badges

Badges are digital trophies that users can collect for achieving specific milestones or demonstrating mastery of a particular skill. There are different types of badges to consider:

• Progress Badges: Mark milestones along the user's journey, like completing a level or reaching a point threshold.
• Mastery Badges: Recognize exceptional performance or in-depth knowledge acquisition.
• Challenge Badges: Reward users for completing difficult tasks or overcoming obstacles.

Badges not only provide a sense of accomplishment but can also act as status symbols within the app, fostering a sense of community and friendly competition.

Leaderboards

For those with a competitive spirit, leaderboards offer a thrilling way to compare progress against others. Users can see their ranking based on points earned, tasks completed, or other relevant metrics. This fosters a sense of healthy competition, motivating users to push themselves further to climb the ranks.

Considerations for Leaderboards

• Fair Competition: Ensure a level playing field by segmenting leaderboards based on relevant factors like user experience level.
• Positive Reinforcement: Highlight top performers while acknowledging the progress of others to maintain a positive atmosphere.
• Visibility and Frequency: Strategically place leaderboards where users can easily see them, but avoid overwhelming them with constant comparisons.

Levels

Levels provide a clear sense of progression within the app. As users complete tasks and earn points, they unlock new levels. Each level can offer increased challenges, new features, and of course, more rewards. The concept of levels taps into our inherent desire for growth and accomplishment, motivating users to keep engaging with the app to reach the next level.

Virtual Goods & Unlockables

Take your reward system beyond points and badges with virtual goods and unlockables. These digital items exist solely within the app and can enhance the user experience in several ways:

• Customization: Virtual goods can allow users to personalize their app experience. Imagine earning cool avatars, unique outfits, or themed backgrounds. This fosters a sense of ownership and individuality within the app.
• Progression and Utility: Unlockables can introduce new features or functionalities as users progress. For example, a language learning app might unlock new conversation topics or games at higher levels. This keeps the experience fresh and motivates users to keep learning.
• Status Symbols: Certain virtual goods can act as status symbols within the app. Earning rare or exclusive items showcases a user's dedication and achievement, adding a layer of social validation to the reward system.

Examples of Virtual Goods & Unlockables:

• Gaming Apps: New characters, weapons, or power-ups
• Productivity Apps: Themes, stickers, or custom backgrounds
• Fitness Apps: New workout routines, virtual clothing for avatars, or early access to features

By offering a variety of virtual goods and unlockables, you can cater to different user preferences and create a more engaging and rewarding experience for everyone.

Examples of Successful Mobile App Reward Systems

Let's see how some popular apps leverage reward systems to keep users engaged:

• Starbucks: The Starbucks Rewards program is a masterclass in gamification. Users collect "stars" for purchases, unlocking free drinks and food items at specific milestones. The program also offers tiered membership with increasing benefits, motivating users to spend more and climb the loyalty ladder.
• Nike Run Club: This fitness app uses a points system to motivate users to stay active. Users earn points for completing runs, joining challenges, and hitting personal bests. These points can be redeemed for virtual rewards like trophies and badges, or even exclusive discounts on Nike products. The app also features a robust social leaderboard, allowing users to compete with friends for bragging rights and extra motivation.
• Khan Academy: This educational app understands that learning can be fun. Students earn points and badges for completing lessons and mastering concepts. Streaks incentivize consistent learning, and a mastery meter provides a visual representation of progress. Khan Academy also incorporates leaderboards to foster friendly competition and encourage students to keep learning.

By understanding how successful apps like Starbucks, Nike Run Club, and Khan Academy utilize reward systems, you can gain valuable insights to design a program that propels your own mobile app to new heights.

Conclusion

A well-designed reward system is the engine that drives a successful gamification strategy. By setting clear goals, understanding your users, and implementing the right mechanics, you can create a compelling experience that motivates users, boosts engagement, and ultimately helps you achieve your app's objectives. 

Remember, the key is to find the right balance between challenge and reward, keeping users engaged and progressing towards their goals. Don't be afraid to test and iterate your reward system – constantly gather user feedback and adapt your program to maximize its impact. By following these best practices, you can transform your mobile app into a captivating and rewarding experience that keeps users coming back for more.